Know your Loan Eligibility

Frequently Asked Questions (FAQs)

1. What is FOIR and why does it matter for my home loan?

FOIR stands for Fixed Obligation to Income Ratio. It is the metric banks use to determine how much of your monthly income is already committed to debt repayments (like car loans, personal loans, or credit cards). For example, if your FOIR limit is 60%, the bank ensures that your new home loan EMI plus any existing EMIs do not exceed 60% of your take-home salary.

2. How can I increase my home loan eligibility?

If the calculator shows a lower amount than you need, you can boost your eligibility by:

• Adding a Co-applicant: Including an earning spouse or family member allows the bank to consider your combined income, significantly increasing your loan amount.

• Clearing Existing Debt: Paying off short-term loans or credit card debt reduces your current obligations, freeing up more of your FOIR for your new home loan.

• Increasing the Loan Tenure: Opting for a longer repayment period (e.g., 25 or 30 years) reduces your monthly EMI, which allows you to qualify for a larger total loan amount.

3. Does my CIBIL/Credit score affect this eligible amount?

Yes! While this calculator estimates your capacity based on income, your actual approval depends heavily on your credit score. A CIBIL score of 750 or higher makes you a low-risk borrower, meaning banks are more likely to approve your maximum eligible amount and offer you the lowest possible interest rates.

4. Are property taxes and insurance included in this EMI estimate?

No. The EMI generated by this calculator only covers the principal loan amount and the bank's interest. When budgeting for your new home, remember to account for additional costs like stamp duty, registration fees, property taxes, and home insurance.