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 |
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.