How home loan eligibility is calculated
Banks usually start with how much EMI you can safely carry. They add up all your EMIs as a share of your income, called FOIR (fixed obligations to income ratio). This calculator allows 50% of income, subtracts the EMIs you already pay, and works out the loan that the remaining EMI could support at your rate and tenure.
On ₹1 lakh a month at 8% over 20 years, that is about ₹60 lakh. A ₹15,000 EMI on a car loan brings it down to about ₹42 lakh, so clearing a small loan first can help.
Lenders apply their own limits and may count your income differently, so treat this as an estimate. Our guide to home loan basics covers the process and documents.
Adding a co-applicant
A co-applicant's income is usually added to yours, which raises the EMI a bank will allow. On ₹1 lakh a month, adding a co-applicant earning ₹50,000 lifts this estimate to about ₹90 lakh.
Their EMIs count too, so enter them in the calculator. A co-applicant with large loans or a weak repayment record may not help much, and they become responsible for the loan.
What caps your limit: income or property value
Your income is only one limit. RBI also caps the loan as a share of the property's value (LTV): up to 90% for loans up to ₹30 lakh, 80% up to ₹75 lakh and 75% above that. Lenders can set lower limits. Enter a property price in the calculator and it applies these bands, so you get the lower of the two limits.
Your credit score affects whether you are approved and at what rate, and each lender sets its own bar. Our guide on loan rejection risks explains what commonly goes wrong.
Eligibility isn't the same as what you can afford
A bank's limit isn't a target. Check the EMI against your take-home pay and your other household costs with the EMI calculator. To work from the other direction, see how much salary you need to buy a house.
This is an estimate from the numbers you enter, not a bank sanction. Only a lender can confirm what you qualify for, after checking your documents and the property.