calc / home loan / FOIR

Home Loan Eligibility

Banks don't lend against your dreams — they cap your total EMIs at a fraction of net income (FOIR) and back-solve the loan. This computes it the way the credit team does.

Estimate your eligibility FOIR method

Eligible loan amount

—

EMI room

—

income × FOIR − existing EMIs

Property budget @ 80% LTV

—

claim & customise this page →

§1How banks decide the number

FOIR — Fixed Obligation to Income Ratio — is the share of your net monthly income a bank allows to go toward EMIs, typically 40–55% (higher incomes get higher FOIR). The calculation:

EMI room = net income × FOIR − existing EMIs Loan = EMI room × ( (1+r)ⁿ − 1 ) ÷ ( r × (1+r)ⁿ ) ← EMI formula, inverted

₹1.5 lakh take-home · 50% FOIR · ₹10k existing EMIs · 8.5% · 20y

EMI room = 75,000 − 10,000 = ₹65,000 Loan ≈ ₹65,000 ÷ 43,391 × 50,00,000 ≈ ₹74.9 lakh

§2The gotchas

It's net income, and only the provable kind

Salaried: average of last 3 payslips, verified against bank credits. Self-employed: 2 years of ITR — cash income the taxman never saw doesn't count for the bank either. Incentives and bonuses are usually taken at 50% weight or ignored.

Every credit line counts against you

Credit-card minimum dues, BNPL, and even loans where you're just the guarantor reduce your EMI room. Closing a ₹9,000/month car loan can raise home-loan eligibility by ~₹10 lakh.

Eligibility ≠ property budget

Banks fund only 75–90% of property value (LTV cap — 80% is typical above ₹75 lakh). Stamp duty and registration (5–8%) are not funded. Work backwards from the down payment you have.

A co-applicant is the biggest lever

A working spouse as co-applicant adds their full FOIR room to yours — often raising eligibility 40–80%. Age matters too: tenure is capped at retirement, and shorter tenure shrinks the loan.

§3Related

Got the number? Check the actual instalment on the EMI calculator.