Home Loan Eligibility Calculator Based on Salary | How Much You Qualify for in 2026
Every Indian bank uses the FOIR (Fixed Obligation to Income Ratio) rule: your total EMIs must stay within 50–55% of net monthly income. On a ₹75,000 salary with no existing EMIs at 8.5% for 20 years, that is roughly ₹36–43 lakh. Add a working co-applicant and eligibility can rise 60–90%. Below: the exact formula, the bank comparison, the co-applicant leverage, and how construction-loan stage-disbursement changes the picture.
1. The FOIR formula banks actually use
- 01Step 1Eligible EMI = (net monthly income × FOIR%) − existing EMIs.
- 02Step 2Loan amount from eligible EMI at the stated rate and tenure.
| Bank | FOIR% |
|---|---|
| SBI | 50–55% |
| HDFC | 50–55% |
| ICICI | 50–55% |
| Axis | 50% |
Self-employed: 40–45% typically. The calculator above applies the FOIR leg; the income-multiplier leg (4.5–6× annual income) caps the absolute amount - the lower of the two governs.
2. Co-applicant leverage - the single biggest lever
A working co-applicant pools income for FOIR. Example: ₹60,000 + ₹40,000 co-applicant = ₹1,00,000 combined. At 50% FOIR, ₹50,000 EMI capacity vs ₹30,000 alone - eligibility rises from ~₹31 lakh to ~₹51.5 lakh (+66%). Best practice: spouse who is earning becomes co-applicant; some banks also count a parent. Female co-applicant: SBI and HDFC offer 0.05–0.10% rate concession on some products.
3. Bank comparison - April 2026
| Bank | FOIR (%) | Min Income (₹) | Loan Tenure | Multiplier Range |
|---|---|---|---|---|
| SBI | 50–55% | 25,000 | 30-yr | 50–55× |
| HDFC | 50–55% | 30,000 | 30-yr | 52–58× |
| ICICI | 50–55% | 25,000 | 30-yr | 50–56× |
| Axis | 50% | 25,000 | 30-yr | 48–54× |
| Kotak | 55% | 30,000 | 30-yr | 50–55× |
| PNB Housing | 45–55% | 20,000 | 30-yr | 45–50× |
| LIC HFL | 50–55% | – | – | – |
4. Construction-loan specifics
Construction loans are disbursed in stages—typically aligned with milestones like plinth, slab, brickwork, and finish—with interest charged only on the amount disbursed up to each stage. Once construction is complete, the loan converts to a full EMI schedule.
The sanctioned loan amount is based on the bank's approved cost sheet: coverage usually includes structure and finishing, but premium interiors, compound wall, and landscaping are often capped or excluded.
5. CIBIL, age and the tenure cap
CIBIL 700–750 minimum, 750+ best rates and 55–60% FOIR allowance. Age: tenure cannot extend beyond retirement (usually 60–65). A 45-year-old wanting 30 years gets capped at 15 years - higher EMI, lower eligibility. The calculator auto-caps tenure so age + tenure ≤ 60; adjust age to see the impact.
Real questions, real answers.
How much home loan can I get on a ₹1 lakh monthly salary?
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At 8.5% for 20 years with no existing EMIs: roughly ₹57–58 lakh (₹50,000 max EMI under the 50% FOIR rule). With a ₹15,000 existing EMI, eligibility drops to ~₹40 lakh. Add a co-applicant to pool incomes.
What is the interest rate for home construction loans in 2026?
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Around 8.3–8.75% floating for salaried applicants from major banks; self-employed slightly higher. Construction loans disburse stage-wise and charge interest-only on disbursed amounts until possession, then convert to full EMI.
Can I get a home loan for plot purchase plus construction?
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Yes - composite plot-plus-construction loans exist, but most banks want construction to start within a fixed window (typically 1–3 years) of plot purchase. Pure plot loans carry higher rates and shorter tenures; converting to a construction loan later is the usual route.
Does a construction loan cover interiors and compound wall?
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Sanctioned amounts follow the bank's approved cost sheet - structure and finishing usually yes; premium interiors, compound wall and landscaping are often capped or excluded. Keep a 10–15% margin from own funds for exactly these heads.
How do banks value my eligibility - FOIR or multiplier?
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Both. FOIR caps total EMIs near 50% of net income (60% at higher slabs in some banks); income multipliers (4.5–6× annual income) cap the absolute amount. The lower of the two governs - the calculator above applies the FOIR leg.
Should I take a longer tenure to increase eligibility?
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It raises the eligible amount but multiplies lifetime interest - 20 vs 30 years on ₹50 lakh at 8.5% adds ~₹30 lakh in interest. Take the longest tenure for eligibility comfort, then prepay from bonuses; most floating loans allow part-prepayment without penalty.
Does adding a co-applicant increase loan eligibility?
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Yes - combining incomes is the single most effective lever. A ₹40,000 co-applicant on a ₹60,000 income raises combined income to ₹1,00,000 - eligibility from ~₹31 lakh to ~₹51.5 lakh (+66%) at 8.5% for 20 years.
What CIBIL score is needed for a home loan?
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Minimum 700–750 for most banks; 750+ gets best rates (8.5–9%) and 55–60% FOIR. 700–750: standard rates. Below 650: rejection or requirement for a co-applicant with a strong score. NBFCs sometimes approve 650+ at higher rates.
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