What is FOIR in home loan approvals?

FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your net monthly income that banks allow to go toward all combined EMIs (usually capped at 50% for standard applicants).

How can I increase my home loan eligibility?

You can increase eligibility by adding a co-applicant (spouse/parents) to club incomes, paying off existing short-term debts, or selecting a longer loan tenure (e.g., 30 years).

Will a low credit score impact my loan approval?

Yes, banks require a CIBIL score of 750 or above for seamless home loan processing. A lower score can lead to surcharges on interest rates or outright rejection.

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Home Loan Eligibility

Check how much loan banks will offer you and estimate your max property budget based on your income.

Your Financial Details

Enter your income and liability stats below.

Net Monthly Income (INR)₹1.00 Lakh

Existing Monthly EMIs (INR)₹15,000

Interest Rate (% p.a.)

Loan Tenure (Years)

Max Obligation Ratio (FOIR %)

FOIR is the maximum percentage of income banks allow to go toward all combined loan EMIs.

Loan Eligibility Results

Estimated metrics generated by bank formulas.

Maximum Loan Approved

₹0

Eligible Monthly EMI Limit₹0/mo

Approx. Downpayment (20%)₹0

Max Purchasing Power₹0

Quick Takeaway:

Based on a monthly net income of ₹1.00 Lakh, you qualify for a maximum home loan of ₹0 at 8.5% over 20 years.

Adding a standard 20% downpayment contribution (around ₹0), you can look for homes valued up to ₹0.

Complete Educational Guide

How Banks Calculate Home Loan Eligibility in India

When you apply for a housing loan, banks assess your repayment capacity using standard financial ratios. Understanding these helps you pre-calculate your sanction limit and avoid loan rejection.

Home Loan Eligibility & FOIR Equation

Max Loan = Max EMI * [ ((1 + r)^n - 1) / (r * (1 + r)^n) ] | Max EMI = (Net Income * FOIR%) - Existing EMIs

Where:

FOIR (Fixed Obligation to Income Ratio) is standardly 50% for commercial banks
Net Income is your monthly take-home salary or net revenue
r is the monthly interest rate (annual interest rate / 12 / 100)
n is the total tenure months (tenure years * 12)

How to Calculate & Use this Tool:

Input Income Details

Enter your actual net monthly take-home salary or revenue.

Declare Active Loans

Specify all existing monthly EMI obligations (e.g. car loan, personal loan, card EMIs).

Select Loan Terms

Select the expected home loan interest rate (%) and tenure in years (up to 30 years).

Assess Buying Power

Review your maximum qualified bank loan amount and total property purchasing power.

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