Your income and loan
Lender assumptions
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How lenders decide your eligibility
Lenders mainly check how much of your income is already committed to EMIs and how much room is left for a new one. This calculator works out the EMI you could afford, then converts it into the loan amount that EMI would repay over your chosen tenure.
Loan = EMI × ((1 + r)^n − 1) ÷ (r × (1 + r)^n)
What else affects your eligibility
- Credit score and repayment history.
- Age and the number of working years left.
- Stability of employment or business income.
- The value, location and legal status of the property.
- Whether you add a co-applicant with income.
Ways to improve your eligibility
- Add an earning co-applicant.
- Close or reduce existing loans and credit card dues.
- Improve your credit score before applying.
- Choose a longer tenure (this lowers the EMI, but you pay more interest overall).
Frequently asked questions
How do banks calculate home loan eligibility?
Banks look at your income, existing obligations, age, credit score, employment stability and the property being purchased. The exact method differs from lender to lender.
What is FOIR?
FOIR (fixed obligation to income ratio) is the share of your monthly income that a lender allows for fixed obligations such as EMIs. Each lender sets its own limit.
Does a longer tenure increase eligibility?
A longer tenure lowers the EMI for the same loan, which can raise the loan amount you qualify for. The trade-off is that you pay more interest over the life of the loan.
Is this the amount my bank will sanction?
No. It is an indicative estimate to help you plan. The final sanction depends on the lender's assessment of you and the property.
Why does the calculator show a property budget?
Lenders usually fund only a part of the property value, and you pay the rest as a down payment. The budget shown is the loan divided by the funding share you select.