Home Loan Eligibility Calculator India

Home Loan Eligibility in India - How Banks Decide How Much to Lend

When you apply for a home loan in India, banks and housing finance companies (HFCs) do not look at a single number. They run two separate eligibility tests and give you the lower of the two results. Understanding both tests - and the factors that influence each - helps you plan your home purchase, choose the right bank, and negotiate better terms.

The two tests are: (1) Income-based eligibility via FOIR - how much can you repay from your monthly income? and (2) Property-based eligibility via LTV - how much will the bank lend against this specific property's value? Use the calculator above to instantly see both figures and find which is the limiting factor in your case.

Understanding FOIR - how your income determines loan eligibility

FOIR (Fixed Obligation to Income Ratio) is the single most important number in the income-based eligibility calculation. It represents the maximum share of your gross monthly income that a bank permits to go toward all fixed EMI commitments combined - existing loans plus the new home loan.

Most Indian banks set FOIR between 40% and 55%. Public sector banks (SBI, PNB, Bank of Baroda) typically cap it at 50%. Private banks and NBFCs like Axis Bank, IDFC First, and Bajaj Housing Finance allow up to 55% for salaried applicants from reputed employers. Government employees - central or state - often get the most favorable FOIR treatment because of job security and pension certainty.

Notice that even a moderate existing EMI significantly reduces your home loan eligibility. This is why financial advisors often recommend clearing other loans - especially high-interest ones like personal loans, consumer durables EMIs, and credit card EMIs - before applying for a home loan.

Understanding LTV - the property value limit on your loan

Even if your income qualifies you for a large loan, the bank will never lend you more than a certain percentage of the property's registered market value. This is the Loan-to-Value (LTV) ratio, and it is regulated directly by the Reserve Bank of India (RBI) to manage housing sector risk.

The RBI-mandated LTV limits for home loans in India are as follows. These apply to the lower of the agreement value or the bank's own technical valuation - whichever is less.

A critical point that many first-time buyers overlook: the LTV applies to the lower of sale agreement value or bank's technical valuation. If you are buying a flat for ₹80 lakh but the bank's technical committee values it at ₹72 lakh, the bank uses ₹72 lakh as the base - giving a maximum loan of ₹54 lakh (75%), not ₹60 lakh. Always get the bank's technical valuation done early in the buying process to avoid last-minute funding gaps.

Also note that GST, stamp duty, and registration costs - which can add 7–12% on top of the agreement value - are not financed by home loans. These must come from your own funds. Factor this into your down payment planning.

How CIBIL score affects your home loan interest rate and eligibility

Your CIBIL score (also called the TransUnion CIBIL credit score) is a three-digit number from 300 to 900 that summarises your credit history. It is the primary credit risk tool used by Indian lenders, although banks also access Experian, Equifax, and CRIF High Mark reports.

A score of 750 or above is considered excellent and qualifies you for the lowest advertised home loan rate. As your score falls below 750, lenders apply a risk premium to the base rate - effectively increasing your interest rate and reducing the loan amount you qualify for.

The financial impact is substantial. On a ₹60 lakh loan over 20 years, a 1% higher rate (which a 650 CIBIL score attracts vs a 750 score) increases the total interest payout by approximately ₹8–9 lakh. Spending 6–12 months to improve your CIBIL score from 680 to 760 before applying for a home loan is one of the highest-ROI financial decisions you can make.

The most actionable lever is payment history - pay every EMI and credit card bill by the due date, without exception. Partial payments and minimum-due payments are treated the same as missed payments by CIBIL's scoring model. Set up auto-debit for all EMIs to remove human error from the equation.

How much home loan can I get on my salary? - quick reference table

The table below shows approximate eligible home loan amounts for different salary levels, assuming 50% FOIR, 8.5% interest rate, 20-year tenure, no existing EMIs, and a CIBIL score of 750+. Use the calculator above for your exact numbers.

SBI vs HDFC vs ICICI vs PNB - which bank gives the best home loan?

There is no single "best bank" for home loans - the answer depends on your employment type, employer category, loan amount, and property location. Here is how the major lenders compare across the factors that actually matter:

*Rates are indicative for Jan 2026 based on published floating rate slabs for borrowers with CIBIL 750+. Actual rate offered depends on loan amount, tenure, employer category, relationship with bank, and credit underwriting. Verify current rates directly with the lender before applying.

Step-by-step home loan process in India - from application to disbursal

Understanding the home loan process reduces surprises and helps you plan the purchase timeline. A smooth application at a PSU bank typically takes 2–4 weeks; private banks and HFCs can disburse in 7–14 working days for standard cases.

Frequently asked questions - home loan eligibility India