MulticalcHome Loan Eligibility Calculator
Don't max out your eligibility! It's safer to keep your total EMIs under 40% of your income to have a buffer for emergencies and lifestyle inflation.
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Home Loan Resources:
What is Home Loan Eligibility?
Home Loan Eligibility is the maximum amount a bank or financial institution is willing to lend you for purchasing a property. It is primarily determined by your repayment capacity, which is assessed using your income, existing debts, age, and credit score.
Lenders use a metric called FOIR (Fixed Obligation to Income Ratio) to ensure you have enough disposable income left for living expenses after paying all your EMIs.
Key Eligibility Factors
Net Monthly Income
Primary Factor. Your in-hand salary determines your repayment capacity.
- Higher income = Higher loan amount
- Spouse's income can be added
- Regular bonuses/incentives may be considered
Age & Tenure
Determines Loan Term. Lenders prefer borrowers with many earning years left.
- Younger age allows for longer tenure (up to 30 years)
- Longer tenure = Lower EMI = Higher eligibility
- Retirement age (60-70) is the usual limit
Credit Score (CIBIL)
Financial Reputation. A score of 750+ is ideal.
- High score unlocks lower interest rates
- Low score may lead to rejection or higher rates
- Regular payments improve score
Existing Debts (FOIR)
Debt burden. Existing EMIs reduce your borrowing power.
- Car loans, personal loans are deducted
- Credit card dues are considered
- Clear debts to boost eligibility
Understanding FOIR Limits
Banks typically cap your total EMI obligations (Existing + New Loan) at a certain percentage of your Net Monthly Income.
| Net Monthly Income | Typical FOIR Limit |
|---|---|
| Up to ₹25,000 | 40% - 45% |
| ₹25,000 - ₹50,000 | 45% - 50% |
| ₹50,000 - ₹1,00,000 | 50% - 55% |
| Above ₹1,00,000 | 60% - 65% |
Tips to Boost Your Eligibility
- Add a Co-applicant: Adding a working spouse or parent combines incomes, significantly increasing eligibility.
- Clear Existing Loans: Pay off small debts to free up your FOIR.
- Choose Longer Tenure: Increasing tenure reduces EMI, allowing for a higher loan amount.
- Declare Additional Income: Include rental income or bonuses if regular.
The Co-Applicant Advantage
Double Your Power
Adding a co-applicant (spouse, parent, or sometimes sibling) not only increases loan eligibility but also allows for tax benefits for both applicants separately under Section 80C and 24(b).
Frequently Asked Questions
Important Disclaimer
This calculator provides estimates for educational purposes only. Actual eligibility depends on bank policies, property valuation, legal checks, and credit history. Multicalc.in does not dispense loan advice.