How do you use the loan eligibility calculator?
- Enter your net monthly salary (in hand, after tax and PF) and any EMIs you already pay.
- Pick the FOIR your bank uses. 45% is common; some banks allow 50% to 55% for higher salaries.
- Add a co-applicant’s salary, the interest rate and the tenure under “Co-applicant, rate and tenure”, then read the loan, the property budget and the cash you need upfront.
How it’s calculated
The calculator works out how much EMI your income can carry, then turns that EMI into a loan amount at your rate and tenure.
Formulas used by the calculator
EMI = (Your salary + Co-applicant salary) × FOIR % − Existing EMIsLoan = EMI × ((1 + r)n − 1) ÷ (r × (1 + r)n), r = rate ÷ 1200, n = years × 12LTV = 90% up to ₹ 30 L, 80% up to ₹ 75 L, 75% aboveBudget = Loan ÷ LTV; Down payment = Budget × (1 − LTV)Upfront = Down payment + Budget × Stamp duty & registration %Sources: RBI housing loan LTV limits, Karnataka Stamp Act, 1957, IGR Karnataka registration fee table.
How banks decide your home loan eligibility
Bank loan sanction decisions are driven by algorithmic underwriting models evaluating your net disposable income, credit history, career stability, and loan-to-value benchmarks.
1. The FOIR Mechanism
Fixed Obligation to Income Ratio (FOIR) measures the percentage of your monthly salary committed to loan installments. Lenders cap FOIR at 40% to 50% to ensure borrowers retain a comfortable living cushion for household expenses, taxation, and unforeseen emergencies.
2. Loan-to-Value (LTV) Bounds
Under Reserve Bank of India (RBI) prudential guidelines, banks finance up to 90% for loans up to ₹30 Lakh, up to 80% for loans between ₹30 Lakh and ₹75 Lakh, and up to 75% for loans exceeding ₹75 Lakh. The balance must be funded as upfront borrower equity.
3. CIBIL Bureau Benchmarks
A credit score above 750 positions you in the prime borrower band, securing lender benchmark spreads (e.g. 8.35% p.a.). Scores under 700 may incur risk premiums of 50 to 100 bps or require higher down payments to achieve mortgage sanction.
Master Salary vs. Home Loan Eligibility Matrix
Indicative borrowing eligibility across income brackets based on 45% FOIR, no other loans and 8.50% p.a. The last column is the 20-year loan divided by the RBI cap for that loan size (90%, 80% or 75%).
| Net Monthly Salary | Max Home EMI (45%) | 15 Years Loan | 20 Years Loan | 25 Years Loan | 30 Years Loan | Max Property (RBI LTV) |
|---|---|---|---|---|---|---|
| ₹40,000 | ₹18,000 | ₹18.27 Lakh | ₹20.75 Lakh | ₹22.34 Lakh | ₹23.39 Lakh | ₹23.05 Lakh |
| ₹75,000 | ₹33,750 | ₹34.25 Lakh | ₹38.91 Lakh | ₹41.89 Lakh | ₹43.86 Lakh | ₹48.61 Lakh |
| ₹1,00,000 | ₹45,000 | ₹45.67 Lakh | ₹51.87 Lakh | ₹55.85 Lakh | ₹58.48 Lakh | ₹64.82 Lakh |
| ₹1,50,000 | ₹67,500 | ₹68.51 Lakh | ₹77.81 Lakh | ₹83.77 Lakh | ₹87.72 Lakh | ₹1.04 Crore |
| ₹2,00,000 | ₹90,000 | ₹91.34 Lakh | ₹1.04 Crore | ₹1.12 Crore | ₹1.17 Crore | ₹1.38 Crore |
| ₹2,50,000 | ₹1,12,500 | ₹1.14 Crore | ₹1.30 Crore | ₹1.40 Crore | ₹1.46 Crore | ₹1.73 Crore |
| ₹3,50,000 | ₹1,57,500 | ₹1.60 Crore | ₹1.82 Crore | ₹1.95 Crore | ₹2.05 Crore | ₹2.42 Crore |
| ₹5,00,000 | ₹2,25,000 | ₹2.28 Crore | ₹2.59 Crore | ₹2.79 Crore | ₹2.92 Crore | ₹3.46 Crore |
Top Indian Lenders: Underwriting Comparison Norms
Checked 18 Oct 2026 · Benchmark floating rates linked to RBI Repo / EBLR for primary retail lenders in Bengaluru.
| Bank / HFC | Floating Rate (EBLR) | FOIR Norms | Processing Fee Cap | Special Products & Highlights |
|---|---|---|---|---|
| State Bank of India (SBI) | 8.35% – 8.75% | 40% – 50% | 0.35% (Max ₹10,000 + GST) | SBI MaxGain (Home Loan Overdraft account reducing overall interest) |
| HDFC Bank | 8.40% – 8.90% | 45% – 50% | 0.50% (Max ₹3,000 – ₹5,000 in offers) | HDFC Reach & Step-Up repayment loans for young executives |
| ICICI Bank | 8.40% – 8.95% | Up to 55% | 0.50% (Max ₹15,000 + GST) | ICICI Extra Home Loans (extended repayment up to age 67) |
| Axis Bank | 8.45% – 9.00% | 45% – 50% | Up to 1.00% (Min ₹10,000) | Fast Forward Home Loans (12 EMIs waived on timely repayments) |
| Bank of Baroda (BoB) | 8.40% – 8.80% | 40% – 50% | Nil in promotional cycles | Baroda Home Loan Advantage (Linked savings account offset) |
4 Ways to Expand Your Borrowing Capacity
1. Add an Earning Co-Applicant
Including your spouse, working parent, or son combines distinct income streams, increasing your collective FOIR ceiling and raising loan capacity by 40% or more, and up to double.
2. Foreclose High-EMI Short Term Debts
Car loans and personal loans chew up significant monthly FOIR allowance. Every ₹10,000 of active loan EMI cleared makes available ~₹ 11.5 L in new home loan principal.
3. Select a Longer Tenure (25–30 Years)
Extending your repayment tenure from 20 to 30 years lowers the per-lakh monthly installment requirement, instantly qualifying you for a higher initial sanction.
4. Ask About Step-Up Repayment Plans
Specialized bank products (such as SBI FlexiPay or ICICI Step-Up) model annual career salary progression, permitting lower initial EMIs as career earnings expand.
Frequently asked questions
Related answers and guides
- How Much Home Loan Can I Get on My Salary in Bengaluru?
- Home Loan Down Payment: RBI's LTV Limits Explained
- PMAY-U 2.0 Eligibility: Who Qualifies in Bengaluru in 2026
- Bank Approved Project: What a Bank's Approval Really Checks
Sources
- Reserve Bank of India, Master Direction on housing loans: LTV caps of 90% (loan up to ₹ 30 lakh), 80% (₹ 30–75 lakh) and 75% (above ₹ 75 lakh); stamp duty and registration excluded from the property cost.
- Karnataka Stamp Act, 1957 and IGR Karnataka: stamp duty 5%, cess 10% of duty, Greater Bengaluru surcharge 2% of duty; registration fee 2% from 31 August 2025. Verified 18 Oct 2026.
- Standard reducing-balance EMI. The default rate of 8.5% and other inputs are editable assumptions, not offers. Checked 19 Oct 2026.
Indicative only. Check the exact figures with your lender. Please verify any tax figure with your Chartered Accountant before acting.
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