Home loan eligibility & affordability calculator

How it works

We take the maximum EMI your income can support (your eligibility ratio minus existing EMIs), then work backwards from the interest rate and tenure to the loan amount. Add your down payment to get the property budget.

How lenders actually decide

Almost every lender starts from the same idea: what proportion of your monthly income may go towards loan repayments. That ratio is often called FOIR, the fixed obligation to income ratio, and it is the eligibility ratio field in this tool. Typical allowances run from 40 to 55 percent, with higher earners usually permitted the higher end because more absolute income is left over after living costs.

The calculation then runs backwards from that. Your maximum EMI is your income multiplied by the ratio, minus any EMIs you already pay. That EMI is converted into a loan amount using the interest rate and tenure you enter. Longer tenure means a bigger loan for the same EMI, which is why lenders often suggest stretching the tenure when eligibility falls short.

A worked example

Take a net monthly income of ₹1,00,000, no existing EMIs, a 50 percent eligibility ratio, 8.75 percent interest and a 20 year tenure. Your maximum EMI is ₹50,000, and that supports a loan of roughly ₹56.6 lakh. Add an existing car EMI of ₹15,000 and the same income supports only about ₹39.6 lakh, because the EMI headroom drops to ₹35,000. Existing obligations are the single biggest lever most people can actually control.

A construction loan is not a purchase loan

This matters if you are building on your own plot rather than buying a finished home, and it surprises many first-time builders.

• The loan is assessed against your approved plan and construction estimate, not against a seller’s price
• Money is released in stages against verified progress, typically after foundation, roof slabs and finishing, with an inspection before each release. You cannot draw it all upfront
• Land value is usually treated as your own contribution rather than as fundable cost, so the plot generally has to be paid for first
• During construction many lenders charge interest only on what has been disbursed, and full EMIs begin once the loan is fully drawn
• A sanctioned building plan and clean title are preconditions, which is why document readiness decides financing more than income does

If your plot cannot get a plan sanctioned, no amount of eligibility helps. Check your position with the build-readiness score and the plan approval checklist.

What this estimate leaves out

• Your credit score, which affects both approval and the rate you are offered
• Income type. Salaried applicants are assessed differently from self-employed, who typically need two to three years of returns
• Age and retirement, which cap the tenure available to you
• Processing fees, insurance, and legal and technical valuation charges
• Stamp duty and registration, which are not part of the funded amount

Frequently asked questions

Why did my bank offer less than this?

Commonly a lower eligibility ratio than you assumed, obligations you did not count such as credit card dues, a shorter tenure because of your age, or a valuation of the property below what you expected. This tool shows what the arithmetic allows; a lender adds its own policy and its view of your profile on top.

Can I improve my eligibility?

The reliable levers are clearing an existing EMI, adding an earning co-applicant, or extending the tenure. Extending tenure raises the loan you qualify for but increases total interest paid, so it is a trade rather than a free gain. Use the EMI calculator to see both sides.

Does the loan cover stamp duty?

Generally no. Stamp duty and registration are paid from your own funds and in Karnataka they are a significant sum, so budget them separately with the stamp duty calculator.