Check your maximum home loan eligibility based on salary, existing EMIs and age. Compare across SBI, HDFC, ICICI and other banks.
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Banks use FOIR (Fixed Obligation to Income Ratio) to determine eligibility. Most banks allow maximum 40-50% of net monthly income towards all EMIs combined. Formula: Max EMI = (Net Salary × 50%) - Existing EMIs. This maximum EMI is then used to calculate the loan amount based on the interest rate and tenure. For example, if your net salary is ₹80,000, max total EMI is ₹40,000. If existing EMIs are ₹5,000, available for home loan EMI is ₹35,000.
For a ₹50 lakh home loan at 8.5% interest for 20 years, the monthly EMI is approximately ₹43,391. At 50% FOIR with no existing EMIs, you need a net monthly salary of at least ₹86,782. With existing EMIs of ₹10,000, you'd need ₹1,06,782. SBI and HDFC generally use 40-50% FOIR, while some NBFCs go up to 55-60% for high-income applicants.
Yes significantly. A CIBIL score above 750 gives you the best interest rates and maximum loan eligibility. Score 700-750 may get a loan but at slightly higher rates. Below 650 makes approval difficult. Banks also consider your repayment history, credit card utilization, and number of recent loan inquiries. A hard inquiry (when a bank checks your credit for a loan) can temporarily reduce your score by 5-10 points.
RBI regulations require a minimum down payment of 10-25% of the property value depending on the loan amount. For loans up to ₹30L, banks can finance up to 90% (10% down). For ₹30L-75L, up to 80% (20% down). Above ₹75L, up to 75% (25% down). Additionally, you pay stamp duty and registration charges (5-7% of property value) which are not covered by home loans. Always keep extra funds for these costs.
Yes, home loans are possible on a ₹30,000 salary. At 50% FOIR, you can afford an EMI of ₹15,000/month. At 8.5% interest for 20 years, this translates to approximately ₹17.3 lakh loan eligibility. Eligibility increases significantly with a co-applicant (spouse). Adding a spouse's income can double your eligibility. Under PMAY (Pradhan Mantri Awas Yojana), first-time buyers in the EWS/LIG category can get subsidized interest rates as low as 6.5%.