The FOIR formula banks actually use
Most online "eligibility calculators" use a simplified EMI = 50% of income rule, then derive a flat number. Real banks use a tiered FOIR (Fixed Obligation to Income Ratio) that varies by income, plus an age-driven tenure cap. Here's the real formula:
Step 1: FOIR cap based on income tier:
– Income < ₹50,000/month → FOIR cap = 50%
– ₹50K – ₹1L → FOIR cap = 55%
– ₹1L – ₹3L → FOIR cap = 60%
– > ₹3L → FOIR cap = 65%
Step 2: Available EMI = (Net income × FOIR cap) − Existing EMIs
Step 3: Max loan = Available EMI ÷ EMI factor for (rate, tenure)
Step 4: Tenure capped so age-at-end ≤ 60 (most banks) or 65 (a few).
– Income < ₹50,000/month → FOIR cap = 50%
– ₹50K – ₹1L → FOIR cap = 55%
– ₹1L – ₹3L → FOIR cap = 60%
– > ₹3L → FOIR cap = 65%
Step 2: Available EMI = (Net income × FOIR cap) − Existing EMIs
Step 3: Max loan = Available EMI ÷ EMI factor for (rate, tenure)
Step 4: Tenure capped so age-at-end ≤ 60 (most banks) or 65 (a few).
This calculator runs that exact computation. The "bank-by-bank" estimate adjusts for documented variation: SBI is a few percentage points more conservative on FOIR than HDFC; ICICI sits in between. None of this is a guarantee — your final eligibility also depends on credit score, employer category, and supporting documents.
Things that lower your eligibility (often unexpectedly)
- Variable pay treatment. Most banks count only 50% of bonus / incentive / commission income, even if it's been steady for years. Use only fixed monthly take-home in this calculator.
- Credit card outstanding counts as an EMI even if you pay in full. Banks assume 5% of total credit card limit as a monthly liability.
- Recently changed jobs (less than 6 months at current employer) can disqualify you from many lenders entirely, irrespective of FOIR.
- Self-employed? Banks use average post-tax profit from last 2–3 ITRs, not gross revenue. Eligibility for self-employed is typically 30–50% lower than salaried for the same gross income.
- Co-applicant who is a homemaker — only some banks count any income (e.g., HDFC counts notional homemaker contribution; SBI does not). This calculator assumes a working co-applicant.
Frequently asked questions
Will this calculator give the exact number my bank approves?
No, but it'll be within 5–10% of what a salaried borrower with a clean credit profile gets approved. Banks have additional adjustments — credit score, LTV ratio (max 80–90% of property value), employer category, and ongoing internal credit policies that change quarterly. Use this as a planning number; get formal pre-approval from 2–3 banks before house-hunting.
Should I take the maximum eligibility?
Almost never. Eligibility = "what banks will lend." Affordability = "what you can actually live with." Many borrowers who max out eligibility find themselves house-poor — unable to save, invest, or handle medical or job emergencies. A safer rule: keep your home loan EMI under 35% of net income (not 50–60% the bank allows), leaving room for renovations, kids' education, and the inevitable car repair.
Does my CIBIL score affect eligibility amount, or just approval?
Both. Below 700 CIBIL: most banks reject outright. 700–750: approval likely but at +0.25–0.50% higher rate, which lowers your eligibility. 750–800: standard rate. Above 800: best rates and sometimes a 0.05–0.10% concession. Improving your score from 720 to 780 before applying is often worth ₹3–5 lakh in additional eligibility on a typical home loan.
Can I include rental income?
Yes, if you have a registered rental agreement and have shown the rent in your last 1–2 ITRs. Banks typically count 70–75% of declared rent as eligible income. Cash rent without ITR disclosure is usually rejected.
What about adding my mother / father as co-applicant?
It works if they're earning (salary or pension, with the loan ending before they turn 70 in most banks). Adding a non-earning parent as co-applicant doesn't increase eligibility but can help with property co-ownership for inheritance reasons. Don't add a parent purely to "look better" — the bank doesn't care.
Log Yeh Bhi Poochte Hain (People Also Ask)
Jis tarah se log search karte hain — unke liye jawab
₹50,000 salary par kitna home loan milta hai?
₹50,000 net monthly salary par, FOIR 50–55% ke hisab se, EMI capacity ₹25,000–27,500/month banti hai (assuming koi existing EMI nahi hai). 8.0% interest aur 20-saal tenure par yeh approximately ₹30–33 lakh ka loan eligibility deta hai. Co-applicant add karne se yeh 60–90% tak badh sakta hai. Upar ka calculator exact figure deta hai apne age aur tenure ke according.
CIBIL score kitna hona chahiye home loan ke liye?
2026 mein major banks (SBI, HDFC, ICICI, Axis, Kotak) ka minimum CIBIL requirement 700–725 hai. 700 se neeche aaya toh system auto-reject kar deta hai. 725–750: standard rate par approval. 750–800: best rates milte hain. 800+: best rates aur negotiating power dono. NBFCs (LIC HFL, PNB Housing) kabhi 650 tak approve kar dete hain par 0.5–1.5% extra rate par.
FOIR ka matlab kya hai?
FOIR (Fixed Obligation to Income Ratio) matlab aapki monthly income ka kitna percentage saare loan EMIs mein ja sakta hai — including the new home loan. SBI typically 50–55% allow karta hai. Agar aapki existing car loan, personal loan, credit card EMIs already 35% income le rahi hain, toh new home loan ke liye sirf 15–20% bachta hai — jisse bahut chhota loan milega. Existing EMIs pre-close karna ya co-applicant add karna FOIR ka issue solve karta hai.
Co-applicant lene ka fayda kya hai?
Working co-applicant (typically wife/husband ya earning parent) add karne se: (1) combined income badhti hai, isse FOIR cap utha hai, eligibility 60–90% tak badh jati hai. (2) Female co-applicant ho toh kuch banks (SBI, HDFC) 0.05–0.10% rate concession dete hain. (3) Joint registration karne par stamp duty mein bhi bachat (states like Maharashtra, Delhi, UP). Best practice: spouse jo working hain unko co-applicant banayein.
Self-employed person ko home loan milega ya nahi?
Haan, milta hai — par eligibility salaried se 30–50% kam hoti hai same gross income par. Banks 2–3 saal ki ITR ka average post-tax profit dekhte hain (gross revenue nahi), aur depreciation deduct karte hain. Plus 3 saal business vintage chahiye, GST returns, aur business bank statements. Cash income jo ITR mein nahi dikhayi gayi — woh count nahi hoti. ITR-declared income stable rakhna 3 saal — yeh sabse important factor hai.