Home Loan Eligibility Calculator

Banks start from your salary slip, not from the flat

Nobody at SBI or HDFC looks at the flat first. They look at your net monthly income, subtract the EMIs you already pay, and decide how much of what is left they will let a new EMI consume. That share is the FOIR, the fixed obligation to income ratio, and it is the number that decides your loan before anyone has valued a property.

What to enter:

• Net monthly income is what lands in your account, not the CTC on your offer letter. CTC includes employer PF and a gratuity provision that never reach you. If you are not sure of the net figure, the take-home salary calculator works it out from the CTC.
• Existing EMIs: car loan, personal loan, credit card EMIs on that phone, the lot. Lenders pull all of it from your CIBIL report, so leaving one out here only sets you up for a smaller sanction than you planned for.
• Interest rate and tenure as the bank will offer them. The tenure is often shorter than you would like; see the section on age below.
• FOIR the lender allows. Fifty percent is typical for a salaried applicant on ₹1 lakh a month. It drops to 40 percent or lower for modest incomes and rises to 60 to 65 percent for high earners at some banks.

FOIR first, then the annuity formula, then the LTV cap

affordable EMI = income × FOIR - existing EMIs
loan           = EMI × [1 - (1+i)^-n] / i           i = rate / 1200, n = years × 12
property       = loan / LTV cap
down payment   = property - loan

The second line is the EMI formula turned around to solve for the principal. The third applies RBI’s loan-to-value ceiling, which depends on the size of the loan:

Loan amount	Maximum loan as a share of value
Up to ₹30 lakh	90%
₹30 lakh to ₹75 lakh	80%
Above ₹75 lakh	75%

₹1 lakh a month, no other EMIs

At 8.5 percent over 20 years with a 50 percent FOIR:

affordable EMI = 1,00,000 × 0.50 - 0 = 50,000
loan           = 50,000 × [1 - (1.007083)^-240] / 0.007083 = 57,61,542

A ₹57.6 lakh loan falls in the 80 percent band, so the property it supports is ₹57,61,542 ÷ 0.8.

Loan you can get	₹57,61,542
Affordable EMI	₹50,000
Property you can buy	₹72,01,927
Down payment needed	₹14,40,385
Basis	Assessed at 50% FOIR with a 80% loan-to-value cap

The line people skip is the last currency figure. ₹14.4 lakh in your own money has to exist before the loan does anything, and it has to come from savings, because a personal loan for the down payment shows up as an EMI and shrinks the eligibility that produced the number. On top of that come stamp duty and registration on the full ₹72 lakh, which in most states is another ₹4 to 6 lakh; the home loan calculator adds those to the cash you need on the day.

A ₹15,000 car EMI costs ₹17 lakh of home loan

Every existing instalment reduces your affordable EMI by exactly that amount, and then the annuity formula multiplies the loss by about 115 on a 20-year loan at 8.5 percent.

A ₹15,000 car EMI takes the affordable EMI from ₹50,000 to ₹35,000, and the loan from ₹57.6 lakh to ₹40,33,079. The car has cost you ₹17.3 lakh of house. A ₹4,000 credit card EMI on a phone costs about ₹4.6 lakh.

If you can close a small loan before you apply, close it. It is the highest-return thing you can do with a bonus in the six months before a home loan application, and it also lifts your CIBIL score.

A co-applicant works the other way. Incomes are added, the FOIR stays at 50 percent, and a spouse earning ₹60,000 lifts household income to ₹1,60,000. The affordable EMI goes to ₹80,000 and the loan to ₹92,18,467, which is now in the 75 percent LTV band: a property of about ₹1.23 crore with a ₹30.7 lakh down payment. Both are jointly liable for every rupee, and both can claim the Section 24(b) and 80C deductions in proportion to their share of the repayment.

What the calculator cannot see: CIBIL, age and the property file

CIBIL score. Most lenders want 750 or higher. Below that you may still get a sanction, but at a rate 25 to 50 basis points worse, and below 700 many will not look at the file. No calculator models this. Pull your report from CIBIL directly before applying and fix any error first; it takes a month.

Age. The loan has to end by around 60 for the salaried and 65 to 70 for the self-employed. At 45 you are offered 15 years, not 20, and the same ₹50,000 EMI then supports only ₹50,77,485. Enter the tenure the bank will actually give you, not the one you want.

Employment. Two or more years with a listed or large private employer, or a government job, gets the best FOIR and rate. Self-employed applicants are assessed on two or three years of ITRs and typically get a lower FOIR, and income that is not on the ITR does not count, however real it is.

The property file. Legal and technical clearance can cut or block a loan when your finances are fine. Unapproved layouts, a missing occupancy certificate, a disputed title chain and an under-construction project without RERA registration are the usual reasons a sanction is withdrawn at the last stage. Lenders keep a list of approved projects; a flat on that list clears in days, one off it can take a month.

Pre-approval. A pre-approved amount is a statement about you, not about any flat. The final sanction still waits on the property clearing both checks. Do not pay a token amount on the strength of a pre-approval letter alone.

The ceiling is not the target

Eligibility is what a lender will risk. It is not what you can live with.

An EMI at 50 percent of net income leaves nothing for a job gap, a medical event, a wedding in the family, or the society maintenance and property tax that arrive the month you move in. The level I have seen people sustain without the loan running their lives is 30 to 35 percent of net income. On ₹1 lakh a month that is a ₹30,000 to ₹35,000 EMI, which supports a loan of roughly ₹35 to 40 lakh rather than ₹57.6 lakh. Enter 35 in the FOIR box to see it: the loan drops to ₹40,33,079.

Once you have settled on a loan amount, the EMI calculator shows what prepayment does to it, and the income tax calculator shows whether the 24(b) interest deduction is worth staying on the old regime for.