Home loan eligibility calculator

How lenders decide

Two limits apply and the smaller one wins. The first is your repayment capacity: the bank adds up every EMI you already pay, adds the proposed one, and checks the total against a percentage of your net (take-home) monthly income. That percentage — the FOIR — is usually 40% at lower incomes and up to 60% for higher earners with stable jobs. Credit card minimums and personal loans count; rent you pay does not, once you move into the new home.

The second limit is the loan-to-value ratio set by the RBI: up to 90% of the property value for loans up to ₹30 lakh, 80% between ₹30 lakh and ₹75 lakh, and 75% above that. Stamp duty and registration are excluded from "value", so keep 7–11% of the price aside in cash on top of your down payment.

What improves eligibility

• A co-applicant. Adding an earning spouse or parent pools both incomes. Many lenders also offer women applicants a slightly lower rate, and several states cut stamp duty for women buyers.
• Closing small loans. Paying off a two-year-old personal loan can free up more eligibility than a raise.
• A credit score above 750. Below 700 you may still get a loan, but at a higher spread.
• A longer tenure, subject to retirement age — most lenders want the loan to end by 60 for salaried and 65 for self-employed borrowers.
• Documented income. Self-employed applicants are assessed on two to three years of ITRs, so declared income matters more than actual cash flow.

Read this before you commit

Being eligible for a loan is not the same as being able to afford it comfortably. A rule of thumb used by financial planners in India is to keep the home EMI under 35% of take-home pay, leaving room for a rate rise of two percentage points and at least six months of expenses in reserve. Floating rates have moved by more than that within a decade.