Your home loan eligibility is determined by your net monthly income, existing EMI obligations, age, loan tenure, and the lender's fixed obligation-to-income ratio (FOIR). Most banks allow total EMIs (including the proposed home loan) up to 50% of net income — meaning a ₹1 lakh/month take-home salary with no existing EMIs could qualify for a home loan with an EMI of up to ₹50,000/month. This calculator tells you the maximum loan amount you can get approved for.
Key Factors That Determine Home Loan Eligibility
Net Monthly Income: Higher income = higher eligibility. Banks consider net take-home (after all deductions), not gross. Existing EMIs: Every existing EMI reduces your eligible new EMI capacity. FOIR (Fixed Obligation to Income Ratio): 40–50% for salaried, 50–55% for self-employed with business proof. Age: Loan tenure cannot extend beyond retirement (typically 60 for salaried, 65–70 for self-employed). The remaining years to retirement cap the maximum tenure.
How to Maximise Home Loan Eligibility
Add a co-applicant: Spouse's or parent's income is counted, significantly boosting eligibility. Prepay existing loans: Clearing other EMIs before applying increases your FOIR-based eligibility. Opt for longer tenure: A 30-year tenure gives lower EMI than 20 years, qualifying for a higher loan amount. Choose a higher-LTV lender: Some banks offer up to 90% of property value for loans under ₹30 lakh. Improve your CIBIL score to 750+ for the best rates and maximum eligibility.
Frequently Asked Questions
What income is considered for home loan eligibility?
Salaried: Net take-home salary after all deductions (PF, TDS, professional tax). Self-employed: Average net profit from ITR for last 2 years. Income from other verified sources (rental, interest) may be partially included. Informal income is generally not considered.
Does CIBIL score affect home loan eligibility?
Yes. A CIBIL score of 750+ gets the best rates and maximum eligibility. Below 700, many lenders reject outright. A higher CIBIL score can also let you negotiate a lower rate, which effectively increases your eligible loan amount (same EMI capacity, lower rate = bigger loan).
What is LTV ratio in home loans?
LTV (Loan-to-Value) ratio is the percentage of the property's value the bank will finance. RBI mandates: up to ₹30 lakh: max 90% LTV; ₹30–75 lakh: max 80%; above ₹75 lakh: max 75%. So for a ₹1 crore property, the maximum loan is ₹75 lakh, and you must fund at least ₹25 lakh as down payment.