Two limits decide your home loan
A lender looks at you and at the property separately. Your income sets one limit and the property's value sets another. Your likely loan is the lower of the two, so a large salary won't get past a low property value, and an expensive home won't get past a modest income.
- Repayment capacity. Lenders allow a share of your income for all EMIs, known as FOIR. They subtract what you already pay, then work out the loan the remaining amount can repay over your tenure. The calculator allows 10 percentage points more FOIR for home loans than for personal loans, up to the overall 80% cap, because the loan is secured and repaid over a long term.
- Property value (LTV). Loan-to-value is the share of the property's value a lender may fund. The Reserve Bank of India sets upper limits, and you pay the rest as a down payment.
How much of the property a lender can fund
| Loan amount | Maximum LTV | Example |
|---|---|---|
| Up to ₹30 lakh | 90% | ₹27 lakh on a ₹30 lakh home |
| Above ₹30 lakh, up to ₹75 lakh | 80% | ₹48 lakh on a ₹60 lakh home |
| Above ₹75 lakh | 75% | ₹1.13 crore on a ₹1.5 crore home |
These are the highest shares allowed, and a lender may fund less. Its valuation may also be lower than the price you've agreed. Lenders generally don't count stamp duty and registration in the property's cost, so budget for those on top of your down payment.
Worked examples
Each example assumes a CIBIL score of 750 or above, no existing EMIs and a 20-year tenure at the calculator's indicative 8% rate.
| Borrower and property | Likely loan | EMI | Limit |
|---|---|---|---|
| ₹40,000 salary, ₹40 lakh home | ₹28.69 lakh | ₹23,997 | Income |
| ₹60,000 salary, ₹60 lakh home | ₹43.03 lakh | ₹35,992 | Income |
| ₹1 lakh salary, ₹1 crore home | ₹75 lakh | ₹62,733 | LTV |
| ₹2 lakh salary, ₹1.5 crore home | ₹1.13 crore | ₹94,100 | LTV |
| ₹15 lakh annual profit, ₹80 lakh home | ₹64 lakh | ₹53,532 | LTV |
In the second row, the property would allow ₹48 lakh but income supports about ₹43 lakh, so the buyer would need around ₹17 lakh of their own money plus purchase costs. Existing EMIs make a large difference: with ₹10,000 a month already going on EMIs, the same buyer's estimate falls to about ₹31 lakh.
Eligibility checks for a home loan
- Age: at least 21, with the loan ending by 60 if you are salaried or 65 if you are self-employed. Some lenders go higher.
- Tenure: up to 30 years in this calculator, as long as the age limit allows it.
- Minimum salary: ₹25,000 a month in metro cities, ₹20,000 in Tier 1 cities and ₹15,000 in Tier 2 and 3 towns.
- Self-employed income: at least ₹2.5 lakh a year in ITR profit plus depreciation, with 2 years in business and 2 years of returns preferred.
- CIBIL score: 750 or above tends to get the best rates. From 600 to 649, some lenders may still consider you at a higher rate.
- Property papers: clear title and an approved plan. The calculator fails this check if either is missing.
- Loan size: the calculator uses ₹3 lakh as the smallest typical home loan and ₹10 crore as the largest.
Tenure changes more than the EMI
A longer tenure raises the loan your income can support, because each EMI has longer to repay it. For a 30-year-old on a ₹60,000 salary, the estimate is about ₹38 lakh over 15 years and ₹43 lakh over 20 years. Over 30 years, income would support about ₹49 lakh, although on a ₹60 lakh home the property limit stops the loan at ₹48 lakh. The cost is the interest, which adds up over the extra years. Your age matters here too: at 45 on a salary, the loan would need to end by 60, so the longest tenure in this calculator is 15 years.
Before you apply
- Save for more than the down payment. Add stamp duty, registration, processing fees, legal and valuation charges, and any moving or furnishing costs.
- Clear smaller debts first. Closing a personal loan or paying off card dues can raise your limit by much more than the EMI you stop paying.
- Consider a co-applicant. Adding an earning spouse or parent can raise the income counted, and their CIBIL score and age will also be reviewed.
- Check the property as carefully as the rate. Ask for the title documents and approved plan early, and check whether the project is RERA-registered if it needs to be.
- Leave some room. Your limit is the most a lender might offer, not what's comfortable. Test the EMI against a period of lower income or a rise in a floating rate.
Want to know more? Read how EMI and prepayment work and fixed vs floating rates. Already own a home and need funds? Compare the loan against property calculator.