🏠
Home Loan Eligibility
Maximum loan a lender will sanction from your income, existing obligations, FOIR and the property LTV cap.
LoansInputs
Results
Formula
- Available EMI = (Net income × FOIR%) − existing obligations
- r = rate / 12 / 100 ; n = years × 12
- Eligible loan = EMI × [(1 + r)ⁿ − 1] / [r × (1 + r)ⁿ]
- LTV cap = Property value × LTV%
- Sanction = min(Eligible loan, LTV cap)
Lenders cap the share of income that can service debt — the Fixed Obligation to Income Ratio (FOIR), called DTI outside India. Whatever EMI capacity remains after existing obligations is converted into a principal using the present-value-of-annuity formula, the inverse of the EMI equation. The sanction is then limited by the loan-to-value ceiling on the property, so the binding constraint is whichever is smaller.
Step-by-step Calculation
- 1.Total considered income
120,000 + 0₹120,000 - 2.FOIR allowance
120,000 × 50%₹60,000 - 3.EMI capacity
allowance − 15,000₹45,000 - 4.Present value of that EMI
EMI × ((1+r)ⁿ − 1) / (r(1+r)ⁿ)₹5,092,164 - 5.LTV limit
6,000,000 × 80%₹4,800,000 - 6.Sanctionable amount
min(income-based, LTV)₹4,800,000
Assumptions
- • Net (take-home) income is used, not gross CTC.
- • FOIR bands typically run 40–50% and tighten at lower incomes.
- • Tenure is capped so the loan closes before retirement age.
- • Stamp duty, registration and GST are not fundable and must come from own funds.
Money Tips
- ◆Closing a small personal loan or credit-card EMI can lift eligibility by several lakh.
- ◆Adding an earning co-applicant pools income and raises the FOIR ceiling.
- ◆A longer tenure raises eligibility but increases lifetime interest — check the EMI calculator alongside.
Warnings
- ▲Eligibility is not an approval: credit score, employer category and property/legal checks still apply.
- ▲Do not plan a purchase at 100% of eligibility — leave headroom for rate rises.
References & Standards
RBI LTV norms (Master Direction on Housing Finance)FOIR / DTI underwriting practice
Results are planning estimates generated in your browser. Nothing you enter is uploaded or stored. Verify material decisions with your lender, adviser or chartered accountant.