Home Loan Eligibility Calculator
How much home loan can you get on your salary? This free calculator uses the FOIR method used by every Indian bank – instantly check your maximum loan amount and compare eligibility across SBI, HDFC, ICICI and Kotak side by side.
Already know your loan amount? Calculate your exact monthly EMI → Home Loan EMI Calculator
| Bank | FOIR | Max Eligible Loan | Max EMI Allowed | Property You Can Buy |
|---|
How Home Loan Eligibility is Calculated in India
Banks in India use the FOIR (Fixed Obligation to Income Ratio) method to determine how much home loan you qualify for. It is the single most important eligibility factor – more than your credit score for determining the loan amount. Understanding FOIR lets you accurately predict eligibility before approaching any bank.
First, know your exact take-home salary using our Salary Breakup Calculator – banks use your net in-hand income, not your CTC.
The FOIR Formula – Step by Step
Loan Amount = Max EMI × [(1+r)^n − 1] / [r × (1+r)^n]
where r = Annual Rate / 12 / 100 n = Tenure in months
Bank-wise FOIR Policy and Eligibility – ₹80,000 Salary Example
The following figures use indicative FOIR estimates commonly referenced by financial comparison platforms. These are not official bank-published figures and vary by profile.
| Bank | FOIR Policy | Max EMI | Max Eligible Loan | Max Property Value (LTV) |
|---|---|---|---|---|
| SBI / Kotak | 50% | ₹40,000 | ≈ ₹40.7 Lakh | ≈ ₹50.9 Lakh |
| HDFC Bank | 48% | ₹38,400 | ≈ ₹39.1 Lakh | ≈ ₹48.9 Lakh |
| ICICI Bank | 45% | ₹36,000 | ≈ ₹36.6 Lakh | ≈ ₹45.8 Lakh |
*FOIR percentages are indicative estimates only – not official figures published by these banks. Actual limits vary by income slab, CIBIL score, employer type and bank policy at time of application. Hisabhkaro is not affiliated with SBI, HDFC Bank, ICICI Bank or Kotak Mahindra Bank.
Why Net Income Matters – Not CTC
Banks calculate FOIR on your actual take-home – after EPF/VPF, TDS, professional tax, and any loan EMI already being deducted from salary. A ₹18 LPA CTC with ₹1.2L/month take-home yields very different eligibility than a ₹15 LPA CTC with ₹1.1L take-home. Never present your CTC to a bank calculator – use the Salary Breakup Calculator to get the right number first.
Once you know your maximum eligible loan, use our Home Loan EMI Calculator to model your exact monthly outflow, total interest, and amortisation schedule.
RBI LTV Norms – Maximum Property Value You Can Buy
Your eligible loan amount determines how much property you can buy – but there is a second constraint: the Reserve Bank of India's Loan-to-Value (LTV) ratio. The LTV limits how much a bank can lend relative to the property's market value, regardless of your income. As of FY 2025–26:
| Loan Amount | Max LTV Ratio | Min Down Payment | Example: Property Value on ₹50L Loan |
|---|---|---|---|
| Up to ₹30 Lakh | 90% | 10% of property value | – (not applicable) |
| ₹30 Lakh – ₹75 Lakh | 80% | 20% of property value | ₹62.5 Lakh (₹12.5L down payment) |
| Above ₹75 Lakh | 75% | 25% of property value | ₹1.33 Crore (₹33.3L down payment) |
Tax Angle: Old Regime vs New Regime
Under the new tax regime (now the default for most salaried employees), Section 24(b) home loan interest deduction of ₹2 lakh per year is not available. If you took a home loan primarily to claim this deduction, you need to recalculate whether old regime still makes sense. Our New vs Old Tax Regime guide shows the exact breakeven point – whether staying on old regime for your home loan benefits outweighs the new regime's lower slab rates.
Weighing whether buying is better than renting at your current stage? Our Rent vs Buy Calculator models the total cost of ownership vs renting over 10–20 years – including opportunity cost of down payment, EMI vs rent differential, and property appreciation assumptions.
How to Increase Your Home Loan Eligibility – 6 Proven Methods
If the calculator shows a lower loan amount than you need, here are the most effective and legally valid ways to increase it. These are the exact strategies Indian banks recommend to borderline applicants – not hacks, just financial clarity.
1. Add a Co-applicant
This is the single most powerful lever. Adding a co-applicant – spouse, earning parent, or sibling – combines incomes for FOIR calculation. A spouse earning ₹50,000/month at 50% FOIR adds approximately ₹31–35 lakh to eligible loan amount. Both co-applicants can also independently claim Section 24(b) interest deductions under the old tax regime (up to ₹2 lakh each), saving ₹60,000+ in combined annual tax. Use our Income Tax Calculator to confirm your exact saving.
2. Close Existing Loans Before Applying
Every ₹10,000 reduction in existing EMIs frees up ₹10,000 for home loan FOIR – translating to roughly ₹8–10 lakh more in eligible loan at 8.5% over 20 years. If you have a small personal loan or car loan nearing completion, consider foreclosing it 2-3 months before your home loan application. Once you have the home loan, whether monthly surplus goes toward prepaying the new loan or investing in SIP depends on your rate - most EBLR-linked loans in 2026 sit at 7.5-8.5% where the decision is not straightforward. The credit score impact of closure is positive within 1–2 reporting cycles.
3. Extend Loan Tenure
Increasing tenure from 15 to 20 years reduces the required EMI per lakh by approximately ₹200, increasing eligible loan amount significantly. At ₹40,000 max EMI: 15-year tenure gives ~₹34L eligible loan; 20-year tenure gives ~₹41L; 30-year tenure gives ~₹48L. The trade-off: total interest paid increases significantly. Always weigh this using our Home Loan Prepayment vs SIP guide and the three-strategy corpus calculator that models the snowball effect at your specific rate and surplus.
4. Improve Your CIBIL Score Above 750
A CIBIL score above 800 can help you negotiate a higher FOIR (some premium lenders extend 55% FOIR). More importantly, it gives you access to lower interest rates – a 0.5% rate reduction on ₹50 lakh over 20 years saves approximately ₹3.5 lakh in total interest. Pay all EMIs on time, keep credit card utilisation below 30%, and avoid multiple loan enquiries in the 6 months before your home loan application.
5. Include All Income Sources
Banks accept rental income, variable pay, annual bonuses (declared in ITR), professional income, and in some cases agricultural income as supplementary income. A verified ₹15,000/month rental income increases your effective FOIR base by ₹15,000 – equivalent to approximately ₹9–10 lakh more in loan eligibility. Keep 2 years of ITR showing this income for documentation.
6. Choose the Right Bank
SBI and Kotak allow 50% FOIR vs ICICI's 45% – a 5 percentage point difference that can be worth ₹4–8 lakh in eligible loan amount on a ₹75,000–₹1,00,000 salary. Some NBFCs and housing finance companies offer 55–60% FOIR for premium salaried profiles with strong CIBIL scores.
Before You Borrow the Maximum: The EMI-Retirement Trade-Off
Banks calculate the maximum loan you can get based on FOIR. This is not the same as the loan you should get. A 50% FOIR means half your take-home is going to EMIs. The other half must cover living expenses, insurance premiums, children's education, emergency fund top-ups, and retirement savings. For most salaried Indians in their 30s, a 30-year home loan at maximum eligibility leaves almost nothing for compounding wealth. Once you know your eligible amount, use the home loan EMI calculator to see the exact monthly payment, total interest, and Section 24 tax saving before making a final borrowing decision.
The Hidden Cost of a 30-Year Loan at Maximum Eligibility
Consider someone earning ₹1 lakh take-home at 35, taking a ₹50 lakh loan at 8.5% for 30 years. Monthly EMI: ₹38,446 (38.4% FOIR). Total interest paid over 30 years: approximately ₹88 lakh, nearly 1.76x the principal. If that same ₹38,446/month had been split 50-50 between EMI and SIP at 12% CAGR, the SIP portion would have grown to approximately ₹3.78 crore over 30 years. The home loan is not just a purchase decision; it is a major impact on your net worth trajectory for three decades. The financially optimal approach for most buyers is to borrow 20-25% below maximum eligibility, keep FOIR under 35-40%, and use the difference to build a parallel SIP that compounds alongside the loan tenure.
CTC vs In-Hand: Why You Must Get This Right Before Applying
Banks assess FOIR on your net in-hand salary, not CTC. A ₹15 LPA CTC at a company with 12% EPF deduction, professional tax, and higher TDS may yield only ₹90,000-95,000 in-hand rather than the ₹1,25,000 the CTC suggests. Presenting the wrong number to a bank calculator gives a falsely optimistic eligibility figure. Understanding the difference between CTC and in-hand salary and exactly what gets deducted before your salary credits is the foundation of any accurate eligibility calculation.
If You Don't Qualify Yet: Personal Loan as a Bridge
If your current income doesn't qualify for the loan amount you need, the temptation is to take a personal loan as a bridge for the down payment shortfall. This is almost always a mistake: personal loan rates (11-18%) compound the cost of home ownership significantly, and a personal loan EMI reduces your home loan eligibility further through FOIR. The better path: wait 12-18 months, reduce existing EMIs by prepaying smaller loans, and grow the down payment through a liquid fund or FD rather than borrowing it.
For the complete picture on home loan eligibility in India, including detailed eligibility rules, documentation checklist, bank-specific FOIR policies, and how to read your sanction letter, the full guide covers every variable that banks use but rarely explain upfront. For a deep dive into the real math behind renting vs buying at your specific income and city, including opportunity cost of down payment, property appreciation assumptions, and the break-even point where buying beats renting, the analysis shows why the answer is rarely as simple as "buy when you can afford it." Calculate your exact monthly outgo first with the home loan EMI calculator before committing to any loan amount.
Frequently Asked Questions
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