Home Loan Eligibility: How Banks Calculate How Much You Can Borrow

What banks look at

• Net monthly income of all applicants.
• Existing EMIs and obligations. See what FOIR is.
• Age and retirement date, which limit the tenure.
• Credit score: higher scores get lower rates and smoother approvals.
• Property value and legal status, which determine the maximum loan through the LTV cap.

A worked example

Your family’s net monthly income is ₹1,00,000, the lender’s FOIR limit is 50% and you already pay ₹10,000 in EMIs.

1. Maximum total obligations = 50% × ₹1,00,000 = ₹50,000.
2. Room for a new EMI = ₹50,000 − ₹10,000 = ₹40,000.
3. At 9% for 20 years, each ₹1 lakh needs an EMI of about ₹900, so ₹40,000 supports about ₹44 lakh.

A lower rate or longer tenure raises the amount; higher existing EMIs reduce it. Try your own numbers with the loan eligibility calculator and the EMI calculator.

How to raise your eligibility

• Add a co-applicant with a steady income (a spouse is the most common choice).
• Close small loans and reduce card balances before applying.
• Choose a longer tenure, and prepay later when you can.
• Make a larger down payment if the LTV cap limits the loan.

Before you sign, go through the home loan checklist, and compare options on the home loan page.

This article is for general information only and is not financial, legal or tax advice. Interest rates, fees and rules change, so confirm current terms with the lender or the regulator before you decide. Examples use illustrative figures. Last reviewed: October 2026.