Finance · Free tool
Loan Eligibility Calculator
Banks cap your total EMIs at 50–65% of net monthly income (Fixed Obligations to Income Ratio, FOIR). We back-calculate the loan amount that fits.
Banks typically use 50-65%. Higher for high earners.
How banks decide eligibility
Indian retail lenders cap your total EMI burden at a percentage of net monthly income — the Fixed Obligations to Income Ratio (FOIR). Typical caps: 50% for net income up to ₹40k/month, 55% from ₹40k–₹1L, 60% from ₹1L–₹3L, and 65% above ₹3L. From this FOIR-allowed EMI we subtract your existing EMIs (car loan, credit card minimum, other home loan) to find headroom, then back-calculate principal using the prevailing rate and tenure.
Worked example
Net salary ₹1.2 lakh/month, existing car-loan EMI ₹12,000. FOIR cap 60% → ₹72,000 max EMI → ₹60,000 headroom. At 8.5% home-loan rate over 20 years, ₹60,000 EMI corresponds to a principal of about ₹69.4 lakh. If you're 32, the bank extends tenure to 25 years (age-cap typically 60–65) — same EMI now supports ₹75–78 lakh. CIBIL 750+ unlocks the bank's best rate; below 700 expect a 50–100 bps premium that cuts eligibility ~6–8%.
When to use this
- Before short-listing flats — locks the realistic price band you can afford
- Deciding whether to close a car / personal loan first to free FOIR for home-loan eligibility
- Negotiating co-applicant addition (spouse salary) to lift the joint eligibility ceiling
For the EMI side of the equation see the EMI Calculator; for the all-in cost of ownership use Rent vs Buy before committing.
FAQ
What is FOIR and why does it matter?
Fixed Obligations to Income Ratio = total monthly EMIs ÷ net monthly income. Banks cap this at 50-65%. Higher income usually allows higher FOIR cap. Existing EMIs reduce headroom for the new loan.
Does my CIBIL score affect eligibility?
Yes — banks use CIBIL to set the rate AND to decide eligibility. Below 700: many lenders decline; 700-750: higher rate; 750+: prime rate. This calculator computes amount only, not approval.
How is home loan eligibility different from personal loan?
Home loans have collateral (the property), so banks lend more liberally — up to 80-90% of property value. Personal loans are unsecured, capped at 8-10× monthly income. Tenure also differs — 30 yrs vs 5 yrs.