Before you start looking at properties and calculating EMIs, the first step is to know your home loan eligibility - how much money banks are willing to lend you. Banks calculate this based on your monthly income, existing EMIs, age, credit score, and job stability. Knowing your eligible loan amount helps you set realistic budget expectations and search for properties within your price range.
For FY 2025-26, banks typically lend up to 60-80 times your monthly income as home loan. So if your monthly income is ₹1 lakh, you might be eligible for ₹60-80 lakh loan. However, this depends on other factors like your existing EMIs (if you already have car loan or personal loan, your eligibility reduces), your credit score (better credit score means higher eligibility), and your age (younger applicants get longer tenure and higher eligibility). Banks also consider your occupation - government employees and people in stable MNC jobs get slightly better terms.
Our home loan eligibility calculator helps you understand how much you can borrow based on your financial profile. Once you know your eligible amount, use EMI calculator to see if the monthly payments fit your budget. Remember, banks allow you to take loan up to 90% of property value (80% for properties above certain value), but you need to arrange 10-20% down payment yourself. Planning for down payment and additional costs like registration, stamp duty is crucial.
To improve your eligibility, pay off existing loans, build a higher credit score by paying all bills on time, and keep debt-to-income ratio low. For first-time home buyers, there are special schemes and tax benefits like Section 24 and Section 80C for home loan interest and principal repayment. Using home loan pre-payment strategy can help you become debt-free faster while maximizing tax benefits.
For information about home loan schemes, eligibility, and documentation, check the National Housing Bank website at NHB official website which explains various housing finance schemes, interest rates, and borrower assistance programs.
DTI (Debt-to-Income) ratio is the percentage of your monthly income that goes towards debt payments. Lenders use this to assess your ability to repay loans. A lower DTI ratio indicates better financial health.
This calculator provides estimates based on researched average bank criteria. Actual eligibility can vary significantly between lenders based on credit score, employment history, property value, and individual bank policies.
Higher income, lower existing debt, good credit score (750+), stable employment, and a substantial down payment can all improve your home loan eligibility and help you get better interest rates.
Longer tenure reduces EMI but increases total interest paid. Shorter tenure means higher EMI but lower total cost. Choose based on your monthly cash flow and long-term financial goals.