Home Loan Eligibility

Find out how much home loan you're eligible for based on your income, existing EMIs and the bank's criteria.

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Enter your income and loan details above to check eligibility

How home loan eligibility is calculated

Banks assess eligibility based on FOIR (Fixed Obligation to Income Ratio) — the maximum fraction of income that can go towards all EMIs.

Eligible EMI Calculation
Eligible EMI = (Income × FOIR) − Existing EMIs
Most banks allow 40–50% of net monthly income for all EMI obligations combined. If your income is ₹75K and FOIR is 50%, max total EMIs = ₹37,500. Subtract existing EMIs to get eligible new EMI.
Loan Amount from EMI
Loan = EMI × [(1+r)^n − 1] / [r × (1+r)^n]
This is the reverse EMI formula. r = monthly rate, n = tenure in months. Property value = Loan / 0.80 (assuming 80% LTV). Down payment = 20% of property value.

Tips to improve home loan eligibility

Close existing loans

Existing EMIs directly reduce your eligible loan amount. Prepaying a personal loan or car loan before applying for a home loan can significantly increase your eligibility.

Add a co-applicant

Adding a working spouse or parent as a co-applicant allows banks to consider combined income, often doubling the eligible loan amount. Co-applicant's CIBIL score also matters.

Improve your CIBIL score

A score above 750 gives access to lower interest rates and higher loan amounts. Pay all EMIs and credit card bills on time, and maintain credit utilization below 30%.

Frequently asked questions

What is the maximum loan-to-value (LTV) ratio in India?

RBI mandates maximum LTV ratios: 90% for loans up to ₹30 lakh, 80% for ₹30L–₹75L, and 75% for loans above ₹75 lakh. This means you must pay 10–25% as a down payment. This calculator uses 80% LTV (20% down payment) as a default.

Does my age affect home loan eligibility?

Yes significantly. Most banks require the loan to be fully repaid by age 60 (salaried) or 65 (self-employed). If you're 45 and want a 25-year loan, the bank will cap tenure at 15–20 years, which raises your EMI and reduces the eligible loan amount.

What documents do I need for a home loan?

Identity and address proof (Aadhaar, PAN), income documents (salary slips for 3 months, Form 16, ITR for 2–3 years), bank statements (6 months), property documents, and employment proof. Self-employed need business proof, CA-certified P&L, and ITR for 3 years.

Can I get a home loan without a salary slip?

Yes. Self-employed individuals, business owners, and freelancers can get home loans using ITR, bank statements, and CA-certified financials. However, the documentation and scrutiny is higher, and some banks require a minimum 2–3 years of consistent ITR filing.

How does CIBIL score affect home loan eligibility?

Most banks require a minimum CIBIL score of 700–750 for home loan approval. A score above 750 helps you negotiate lower interest rates (0.1–0.5% lower). Scores below 650 typically result in rejection or significantly higher rates. Check your CIBIL score for free on the CIBIL website once a year.