How Banks Decide (2026)
- •Banks use FOIR (Fixed Obligation to Income Ratio): typically 50%–65% of your net income can go towards all EMIs combined.
- •Home loan rates start around 7.25%–7.7% in July 2026 (SBI, HDFC, ICICI, Kotak) — but only for 750+ CIBIL scores.
- •A weaker CIBIL band adds a 0.4%–1.75% rate spread, which directly shrinks the loan amount your EMI capacity can service.
- •Existing EMIs directly reduce your eligibility — every ₹1,000 of running EMI can cost you ₹1.2 lakh+ of home loan.
- •Most banks want the loan closed by age 60, so your age caps the maximum tenure.
The Real Problem This Solves
Most eligibility calculators show you one inflated number for one bank and then push you to "Apply Now." Reality: the same salary gets different answers at different banks, because each lender applies its own FOIR norms and interest rate.
This calculator does what no bank's own tool will: it computes your eligibility the way credit teams actually do (FOIR-based, priced by your CIBIL band), shows it across SBI, HDFC, ICICI, Axis, and Kotak side by side, and tells you exactly what each move — lifting your score a band, closing an EMI, adding a co-applicant, stretching tenure — adds to your eligible amount in rupees.
How Eligibility Is Actually Calculated
Step 1: your CIBIL band sets the rate — the advertised ~7.5% is for 750+ scores; a 700–749 score pays roughly 0.4% more, 650–699 close to 1% more. Step 2: the bank fixes your maximum EMI capacity = net monthly income × FOIR − existing EMIs. Step 3: it converts that EMI into a loan amount at your rate and tenure (the EMI formula run in reverse) — so a worse score means a higher rate means a smaller loan from the same EMI.
Example: Vikram takes home ₹80,000/month, pays a ₹5,000 car EMI, and has a 760 CIBIL score. At 60% FOIR his EMI capacity is 80,000 × 0.60 − 5,000 = ₹43,000. At 7.5% for 20 years, that services a loan of about ₹53.4 lakh. If he closes the car loan first, his eligibility jumps to roughly ₹59.6 lakh. But if his score were 690 instead, the ~8.4% rate would cut him to about ₹50 lakh — the score alone is worth lakhs.
| Net Income | Existing EMIs | FOIR | Eligible @ 7.5%, 20 yrs |
|---|---|---|---|
| ₹45,000 | ₹0 | 55% | ≈ ₹30.7 lakh |
| ₹80,000 | ₹5,000 | 60% | ≈ ₹53.4 lakh |
| ₹1,50,000 | ₹10,000 | 65% | ≈ ₹1.09 crore |
Frequently Asked Questions
Why do different banks show different eligibility for the same salary?
Each bank sets its own FOIR ceiling and interest rate. A bank allowing 65% FOIR at 7.65% will sanction noticeably more than one allowing 55% at 8.35%. That is why comparing before applying matters — a rejected application also dents your credit score.
How much does my CIBIL score change my eligibility?
Dramatically, through the rate. Banks advertise their lowest rate (around 7.25%-7.7% in 2026) for 750+ scores. A 700-749 score typically pays ~0.4% extra and 650-699 nearly 1% extra — on an ₹80,000 salary that difference alone can move your eligible amount by ₹3-5 lakh. Below 650, many banks decline home loans outright.
Does adding a co-applicant really help?
Yes, it is the single biggest booster. The co-applicant's net income is added to yours before FOIR is applied, so a spouse earning ₹25,000/month can add ₹15-20 lakh of eligibility. They become equally liable for repayment, though.
Is eligibility based on CTC or in-hand salary?
In-hand (net) salary. Banks look at what actually hits your account after PF, tax, and deductions. Variable pay and incentives are usually counted only partially (50% or less), if at all.
Will a personal loan reduce my home loan eligibility?
Significantly. Every running EMI is subtracted from your FOIR capacity before eligibility is computed. Close small loans a few months before your home loan application if you can.
Know your eligible amount?
Now see what that loan actually costs month by month — EMI, total interest, and the tenure trap — with our Home Loan EMI Calculator.
Open Home Loan EMI Calculator →