About this tool
The India Home Loan Eligibility Calculator estimates the maximum home loan you can receive in India based on three parallel limits applied by every Indian lender: FOIR (Fixed Obligation to Income Ratio), LTV (Loan to Value), and age plus tenure constraints. Default values reflect RBI Master Circular norms and the typical FOIR matrices published by SBI, HDFC, ICICI and PNB.
For May 2026, the RBI repo rate sits at 6.25% and prime home loan rates range from 8.35% (Bank of Baroda) to 8.75% (Kotak). FOIR caps have widened slightly post-pandemic, with CIBIL 800+ borrowers now unlocking 65% in many private banks. The calculator uses these current norms by default.
How it works
- Enter your net monthly income (post tax and PF deductions). Banks calculate FOIR on net, not gross.
- Add the EMI of every running loan: car, personal, credit card minimum due, two-wheeler, gold loan.
- Enter CIBIL score from your credit report. Default 750. The calculator caps FOIR at 65% for 800+, 60% for 750-799, 55% for 700-749, 50% for 650-699, and 40% (likely declined) under 650.
- Choose employment type. Salaried caps loan tenure at retirement age 60. Self-employed stretches to 65. Pensioners get up to 70 with co-applicant.
- Optional: add co-applicant net income. This raises the FOIR base; the joint income method is the cleanest way to add Rs 25-50 lakh eligibility.
- Choose property type. Under-construction property gets 5 percentage points lower LTV. Plot + construction loans are tranched; we use the same caps.
- The calculator computes max EMI from FOIR, derives loan from the EMI formula, applies the RBI LTV cap, and returns the minimum.
Formula
Max loan (FOIR) = Max EMI / [r × (1+r)^n / ((1+r)^n - 1)]
Max loan (LTV) = Property value × LTV%
Final eligibility = min(FOIR loan, LTV loan)
where r = annual rate / 12 / 100, n = tenure in months. Tenure is also capped by (retirement age - current age).
The three caps every Indian lender applies
Indian home loan eligibility is the lowest of three parallel limits. Understanding each one separately is the only way to predict how much a bank will sanction.
Final loan = min(FOIR loan, LTV loan, tenure-adjusted maximum)
FOIR by CIBIL band (typical PSU + private bank policy)
| CIBIL band | FOIR cap | Rate adjustment | Verdict |
|---|---|---|---|
| 800-900 | 65% (or 65%+ joint) | Card rate -10 to -25 bps | Best terms; negotiate |
| 750-799 | 60% | Card rate | Standard approval |
| 700-749 | 55% | Card rate +10 to +25 bps | Approvable, but pricier |
| 650-699 | 50% | Card rate +50 to +100 bps | Difficult; consider NBFC |
| 300-649 | 40% | Card rate +200-300 bps | Likely declined; rebuild score first |
LTV cap by loan size (RBI mandate)
These are RBI ceilings. Banks may lend less but never more. Under-construction property gets 5 percentage points lower than the bands above (so 85/75/70 instead of 90/80/75).
Worked examples for Rs 50K, Rs 1L and Rs 2L monthly income
All three examples assume CIBIL 750, no existing EMIs, 20-year tenure, 8.5% rate, ready-to-move property.
| Net income / month | FOIR cap (60%) | Max EMI | FOIR-based loan | With Rs 50K co-applicant |
|---|---|---|---|---|
| Rs 50,000 | Rs 30,000 | Rs 30,000 | ~Rs 34.6 lakh | ~Rs 69.2 lakh |
| Rs 1,00,000 | Rs 60,000 | Rs 60,000 | ~Rs 69.2 lakh | ~Rs 1.04 crore |
| Rs 2,00,000 | Rs 1,20,000 | Rs 1,20,000 | ~Rs 1.39 crore | ~Rs 1.73 crore |
Note that the LTV cap can bind first. A Rs 2 lakh earner with FOIR-based eligibility of Rs 1.39 crore needs a property worth at least Rs 1.85 crore (LTV 75%) to actually use that headroom.
Tax savings on home loan: Section 24(b), 80C and 80EEA stacking
Under the old tax regime, three sections stack:
- Section 24(b): up to Rs 2 lakh per year of home loan interest deductible for self-occupied property. No deduction under the new regime.
- 80C: up to Rs 1.5 lakh of principal repayment plus stamp duty and registration in the year of purchase. Old regime only.
- 80EEA: extra Rs 1.5 lakh of interest for first-time buyers, if loan was sanctioned between Apr 2019 and Mar 2022 and property stamp value is under Rs 45 lakh. Stacks on top of 24(b).
At the 30% slab, a borrower fully using 24(b) + 80C saves Rs 1.05 lakh/year in tax. This effectively reduces the post-tax interest rate by 1.5-2 percentage points for the first 8-10 years of the loan.
Frequently asked questions
How does CIBIL affect my home loan rate?
Most banks publish a rate card and add or subtract spread based on CIBIL. Typical math: 800+ unlocks the card rate minus 10-25 bps; 750-799 gets card rate; 700-749 adds 10-25 bps; under 700 adds 50-150 bps if approved at all. Each 50-point improvement is worth roughly 10-25 bps. On a Rs 50 lakh, 20-year loan, that is Rs 1-3 lakh of lifetime interest per 50-point band.
How much does a co-applicant boost eligibility?
Adding a co-applicant with Rs 50,000 net monthly income on a salaried 20-year, 8.5% loan typically adds Rs 25-30 lakh to eligibility, because the FOIR cap now applies to the combined income. The boost is biggest when the primary applicant was hitting the FOIR limit but not the LTV limit. Female co-applicants additionally unlock 5 bps rate concession at most PSU banks.
Why did the bank give me less than this calculator?
Three usual reasons. First, banks subtract a haircut from variable pay (incentives, RSU, performance bonus) so your "net" for FOIR is lower than what hits your bank account. Second, your CIBIL may have hidden hits from late payments older than 12 months. Third, the property valuation came in below the agreement value, lowering the LTV base. Ask the bank for the sanctioned EMI vs FOIR working in writing.
Am I eligible for balance transfer to a lower-rate bank?
Balance transfer is straightforward if outstanding loan is above Rs 25 lakh, new rate is at least 25 bps lower, and remaining tenure is 10+ years. Total switch cost is Rs 30,000-Rs 75,000 on a Rs 50 lakh loan (processing fee + valuation + legal). Save 50 bps for 20 years and you recover the switch cost in 8-10 months. The receiving bank re-runs your FOIR and CIBIL.
Can I get a top-up loan on my existing home loan?
Yes. Most lenders allow a top-up of 30-50% of the original sanction once 12-18 EMIs have been paid on time. Top-up rate is typically the same as the home loan rate plus 0.25-0.50% spread. It is cheaper than a personal loan. The combined EMI (home loan + top-up) must still respect your FOIR cap, so the same eligibility math applies. Top-up interest qualifies for Section 24(b) only if used for property repair or extension.
What is FOIR and why do banks use it?
FOIR stands for Fixed Obligation to Income Ratio, the percentage of your net monthly income that can go to debt repayment (existing EMIs plus the new home loan EMI). Banks use it to ensure you have a buffer for living expenses, healthcare, school fees and savings. RBI does not mandate a specific FOIR cap; each bank sets its own matrix, typically 50-65% by income band and CIBIL. Going above 65% is rare even with a co-applicant.
Is there a female-borrower concession on home loans?
Yes. SBI, BoB, PNB and most PSU banks offer 5 bps (0.05%) rate concession when the property is in the woman's name or she is the primary applicant. HDFC and ICICI offer similar concessions in 2026. On a Rs 50 lakh, 20-year loan, 5 bps saves roughly Rs 25,000-Rs 30,000 in total interest. Stamp duty in many states (Delhi, UP, Punjab, Haryana, Rajasthan) is also 1-2 percentage points lower for female buyers, which often beats the loan rate concession.
Why does under-construction property have lower LTV?
Under-construction property carries builder risk and project delay risk. RBI permits banks to lend 75-80% LTV on under-construction property vs 80-90% on ready-to-move-in, and the disbursal is staggered by construction stage (linked to the builder's demand letters). During construction you pay only the interest on the disbursed amount (pre-EMI). Once full disbursal happens, the regular EMI begins. Many buyers do not realise the LTV gap and end up with a 5-10% larger down payment than expected.
Does pre-payment of existing loans help home loan eligibility?
Yes, immediately. Every Rs 10,000/month of existing EMI you clear frees up Rs 10,000 of FOIR headroom. At 8.5% over 20 years, each Rs 10,000 of freed FOIR is worth approximately Rs 11.5 lakh of additional home loan eligibility. Close the smallest EMIs (credit card revolving, two-wheeler) at least 3 months before applying; the credit bureau update lags by 30-45 days.
Can I get a home loan after age 50?
Yes, with a shorter tenure. Salaried borrowers are capped at retirement (60 typically), so a 50-year-old gets max 10-year tenure. Self-employed extends to 65. Adding a younger co-applicant (spouse or earning child) lets you take a 20-year loan as long as the elder applicant repays within their working tenure. Tenure compression raises EMI by 50-100% versus a 20-year stretch, so income headroom must be substantial.
How long does CIBIL improvement take?
From a sub-650 starting point, 12-18 months of perfect EMI and credit-card payment behaviour typically lifts CIBIL above 750. Pay every EMI by due date, keep credit card utilisation below 30% of limit, do not close old cards (history length matters), and avoid 3+ hard enquiries in 6 months. Each 50-point band crossed materially changes FOIR and rate.
Are stamp duty and registration covered in the loan?
No. Banks fund the property cost only (against the sale agreement). Stamp duty (5-7% in most states) and registration (1%) come from your pocket. Some lenders include these in a top-up at higher rate, but it is typically cheaper to fund them from savings or a short-term personal loan. Stamp duty paid in the year of purchase qualifies for 80C deduction in the old tax regime.
What documents do banks need for home loan?
Salaried: 3 latest pay slips, Form 16, 6 months bank statement, PAN, Aadhaar, photo ID. Self-employed: 2 years ITR with computation, audited financials, 12 months bank statement, GST returns if applicable. Property: sale agreement, title chain (30 years for resale), no-encumbrance certificate, builder approval list for new projects. Banks may ask for additional documents based on city and property type.
How accurate is the India Home Loan Eligibility Calculator?
It applies the FOIR and LTV norms used by all major Indian banks. Real-world sanction can be 5-10% lower because banks haircut variable pay and apply individual underwriting overlays. Use the result as an upper bound, then expect 5-10% downward adjustment.
Is the calculator free?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool.
Are my inputs saved?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses cookieless Umami analytics for traffic measurement but never sees your form values.
Can I use it on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers.
Does it work offline?
Yes. Once the page has loaded, calculations run in JavaScript on your device.
How do I report a bug or suggest an improvement?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours.
Will the calculator update when RBI changes the LTV cap?
Yes. The numbers are reviewed each quarter against the RBI Master Circular and major bank rate cards. Significant rule changes are reflected within 30 days.