Home Loan Eligibility Calculator
Find out how much home loan you can get based on your income. Compare bank offers, calculate EMI, and plan your property purchase with stamp duty and registration charges.
Home Loan Eligibility Calculator
Annual: ₹12,00,000
Car, personal, credit card EMIs
Current avg: 8.5% - 9.5%
Fixed Obligation to Income Ratio
Income Summary
How Home Loan Eligibility is Calculated
Banks use a systematic approach to determine how much home loan you qualify for. The primary factor is your repayment capacity, measured through FOIR (Fixed Obligation to Income Ratio).
Eligibility Formula:
Available EMI = (Monthly Income x FOIR%) - Existing EMIs
Eligible Loan = EMI-based calculation using interest rate and tenure
Key Factors:
- Income: Higher income = Higher eligibility
- Existing EMIs: Reduces available EMI for home loan
- Interest Rate: Lower rate = Higher loan amount for same EMI
- Tenure: Longer tenure = Higher loan but more interest
- Credit Score: Higher score = Better rates and terms
Understanding FOIR
For Salaried Employees
- FOIR: 40-50% of net salary
- Income proof: Salary slips, Form 16
- Job stability considered
For Self-Employed
- FOIR: 30-40% of net profit
- Income proof: ITR, Balance sheet
- Business vintage matters
LTV (Loan to Value) Ratios
| Loan Amount | Max LTV | Down Payment |
|---|---|---|
| Up to Rs 30 Lakh | 90% | 10% minimum |
| Rs 30 Lakh - Rs 75 Lakh | 80% | 20% minimum |
| Above Rs 75 Lakh | 75% | 25% minimum |
* LTV ratios as per RBI guidelines. Banks may have stricter limits.
Stamp Duty Rates by State
| State | Male | Female | Registration |
|---|---|---|---|
| Maharashtra | 6% | 5% | 1% |
| Delhi | 6% | 4% | 1% |
| Karnataka | 5% | 5% | 1% |
| Tamil Nadu | 7% | 7% | 1% |
| Gujarat | 4.9% | 4.9% | 1% |
* Rates are indicative and may vary. Check with local registrar for current rates.
Eligibility Calculation Example
For a salaried person with Rs 1 Lakh monthly income:
| Monthly Income | Rs 1,00,000 |
| FOIR (50%) | Rs 50,000 |
| Existing EMIs | - Rs 10,000 |
| Available for Home Loan EMI | Rs 40,000 |
| At 8.5% for 20 years | - |
| Eligible Loan Amount | ~Rs 46 Lakh |
| Max Property (80% LTV) | ~Rs 57.5 Lakh |
Bank-wise Home Loan Eligibility — Same Salary, Different Loan Amounts
The eligibility number changes by ₹12–14 lakh between banks for the same applicant. Below is what a salaried person earning ₹1,00,000/month with no other loans actually qualifies for across 7 major lenders. Rates as of April 2026; 25-year tenure assumed.
| Bank / Lender | FOIR Limit | Interest Rate | Max EMI | Max Loan | Processing Fee |
|---|---|---|---|---|---|
| SBI | 65% | 8.50% | ₹65,000 | ₹80.75 L | 0.35%, min ₹2,000 |
| Axis Bank | 65% | 8.75% | ₹65,000 | ₹78.90 L | 1.00%, min ₹10,000 |
| Bajaj Housing | 60% | 8.50% | ₹60,000 | ₹74.10 L | 0.50% |
| LIC Housing Finance | 60% | 8.40% | ₹60,000 | ₹74.05 L | 0.50%, capped ₹10,000 |
| HDFC | 60% | 8.60% | ₹60,000 | ₹73.50 L | 0.50%, max ₹3,000 |
| ICICI Bank | 60% | 8.75% | ₹60,000 | ₹72.80 L | 0.50–1%, min ₹3,000 |
| Kotak Mahindra | 55% | 8.55% | ₹55,000 | ₹68.00 L | 0.50% |
The ₹12.75 lakh gap nobody tells you about: The same applicant qualifies for ₹80.75 L at SBI but only ₹68 L at Kotak — a 19% difference driven entirely by FOIR policy and rate. Public-sector banks (SBI) generally allow higher FOIR (65% vs 55–60% at most private). For loans above ₹75 L, getting pre-approved by 2–3 banks before property selection is worth the extra paperwork — it gives you a real number to negotiate property price, not a rough estimate.
The True Cash You Need — Hidden Costs Beyond the Down Payment
Most buyers budget for "20% down payment" and consider themselves prepared. The actual upfront cash requirement is closer to 27–32% of property value once you add stamp duty, registration, taxes, and processing charges — none of which are covered by the home loan. Here's the real math on a ₹1 crore property with an ₹80 lakh loan.
| Cost Component | Amount | What It Covers |
|---|---|---|
| Down payment (20%) | ₹20,00,000 | The portion banks won't lend — usually 80% LTV ratio |
| Stamp duty (5–7% of property) | ₹6,00,000 | State-specific. Maharashtra 6%, Karnataka 5%, TN 7%, Delhi 6%. Women buyers get 1% rebate in most states. |
| Registration charges (1%) | ₹1,00,000 | Sub-registrar fee, capped in some states |
| GST (under-construction only, 5%) | ₹5,00,000 | Only for under-construction; ready-to-move resale is GST-exempt |
| Processing fee (0.5% of loan) | ₹40,000 | One-time bank fee. Often negotiable to ₹10,000. |
| Property insurance (one-time) | ₹50,000 | Bank-mandated. Term cover + property cover, paid upfront from loan. |
| Legal verification + valuation | ₹15,000 | Bank's lawyer fee + government valuation |
| Total upfront cash needed | ₹33,05,000 | = 33% of property value (not the 20% most assume) |
PMAY Subsidy — Up to ₹2.67 Lakh Off
First-time home buyers with household income between ₹6L–₹18L per year qualify for Pradhan Mantri Awas Yojana (MIG-I/MIG-II). Interest subsidy of 3–4% on the first ₹6–12 lakh of the loan, paid as a lump-sum to your loan account — effectively reducing principal. Apply through any participating bank along with the home loan.
Section 80C + 24(b) — ₹3.5 Lakh Tax Deduction Annually
Principal repayment qualifies for 80C deduction (up to ₹1.5L). Interest paid is deductible under Section 24(b) up to ₹2L per year for self-occupied property. Combined annual tax saving for a 30% slab borrower: ~₹1.05 L per year for the first 7–8 years of the loan when interest dominates EMI.
The pre-EMI trap: For under-construction properties, banks disburse the loan in tranches during construction. You pay only the interest on the disbursed amount ("pre-EMI") during this period — which feels cheap. But these interest payments don't reduce principal and aren't deductible under 24(b) until construction completes. On a 3-year construction project, pre-EMI typically adds ₹4–6 lakh to total loan cost vs starting full EMI from day one.
Four Levers to Increase Your Eligibility by 30–60%
If the eligibility number from the calculator falls short of your target property, you have specific levers to pull. These are the four that move the number meaningfully — used in priority order.
1. Add a Co-applicant (+30–60%)
A working spouse, parent, or sibling can be added as co-applicant. Their salary adds to the FOIR calculation. A spouse earning ₹50,000/month added to a ₹1L primary applicant raises eligibility by ~₹40 L (₹80L → ₹120L). Joint tax deduction also doubles: each co-owner claims their own 80C + 24(b) limits.
Best for: Couples where both work. Both should be co-owners of the property too.
2. Clear Existing EMIs (+10–25%)
FOIR includes all your existing EMIs (car loan, personal loan, credit card minimums, education loan). Each ₹10,000/month of existing EMI cleared frees up ₹12.4 L of home loan eligibility at current rates. Pay off short-tenure loans 3–6 months before applying.
Best for: Anyone with a personal loan or car loan running. Closure certificate is needed.
3. Extend Tenure to 30 Years (+18%)
Most banks offer up to 30-year tenure if you'll retire after the loan ends. Stretching from 20 to 30 years drops EMI ~16% — letting you borrow ~18% more for the same EMI. Total interest paid increases sharply (₹1.4 Cr vs ₹86 L on a ₹80 L loan), but you can prepay early.
Best for: Buyers under 35 with strong income growth ahead.
4. Switch to Step-Up Loan (+20%)
A step-up loan starts with lower EMI in early years and increases over time, matching expected salary growth. Banks count the average EMI for FOIR. Best for young professionals expecting 8–10% annual salary growth. Eligibility increases ~20% vs flat EMI loan.
Best for: Professionals under 30 in private sector or growth roles.
Prepayment + balance transfer strategy: Once the loan starts, the single highest-impact move is annual prepayment. RBI allows free prepayment on floating-rate loans. Prepaying ₹1 L/year on an ₹80 L loan saves ~₹22 L in total interest and shortens the tenure by ~6.5 years. Combine with a balance transfer when another bank's rate is 0.75%+ lower than yours.
What NOT to do: Don't take a personal loan to fund the down payment. Banks check your credit report — a fresh personal loan immediately reduces your home loan eligibility by exactly its EMI × 124 (the loan-eligibility multiplier). You'll either get rejected or get a smaller home loan than the personal loan amount.
Frequently Asked Questions
How is home loan eligibility calculated?
Home loan eligibility is calculated based on your monthly income, existing EMI obligations, and FOIR (Fixed Obligation to Income Ratio). Banks typically allow EMI up to 40-50% of your monthly income. The eligible loan amount is then calculated using this available EMI, interest rate, and loan tenure.
What is FOIR in home loan?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that can go towards all EMI payments including the new home loan. For salaried individuals, FOIR is typically 40-50%, meaning if you earn Rs 1 lakh monthly, your total EMIs (including new home loan) should not exceed Rs 40,000-50,000.
What is LTV ratio in home loan?
LTV (Loan to Value) ratio is the percentage of property value that the bank will finance. For loans up to Rs 30 lakh, LTV can be up to 90%. For Rs 30-75 lakh, its 80%. For above Rs 75 lakh, LTV is typically 75%. You need to arrange the remaining amount as down payment.
How can I increase my home loan eligibility?
You can increase eligibility by: (1) Adding a co-applicant (spouse/parent) to combine incomes, (2) Clearing existing loans to reduce FOIR, (3) Choosing longer tenure (increases loan amount but more interest), (4) Improving credit score for better rates, (5) Showing additional income sources.
What documents are needed for home loan?
For salaried: ID proof, address proof, salary slips (3-6 months), bank statements (6-12 months), Form 16, employment letter. For self-employed: ITR (3 years), business proof, CA certified financials, bank statements. Property documents: Sale agreement, title deed, encumbrance certificate, approved plan.
What is the maximum home loan tenure in India?
Most banks offer home loan tenure up to 30 years. However, the tenure is also limited by your age at loan maturity, typically 60-65 years for salaried and 65-70 for self-employed. For example, if you are 40, max tenure would be 20-25 years based on retirement age.
What additional costs are there apart from loan EMI?
Additional costs include: Stamp duty (4-7% by state), Registration charges (1%), Processing fee (0.25-1%), Legal and technical charges, Insurance (life and property), GST on under-construction property. Total additional cost can be 8-12% of property value.
Can I get 100% home loan?
No, banks in India do not offer 100% home loan. The maximum LTV is 90% for loans up to Rs 30 lakh and reduces for higher amounts. You must arrange at least 10-25% as down payment from your own funds. Some banks may offer top-up loans for interiors separately.