Banks allow EMI up to 40-50% of monthly income (FOIR). Maximum loan tenure is 30 years or until age 70 (whichever is earlier). Higher credit score = higher eligibility + lower rate.
Home Loan Eligibility — Key Questions
How do banks calculate home loan eligibility?+
Banks use FOIR (Fixed Obligation to Income Ratio) — they allow total EMIs (existing + new home loan EMI) to be 40–50% of your net monthly income. For example, if you earn ₹1 lakh/month and have no existing EMIs, maximum new EMI = ₹40,000–₹50,000. At 8.5% for 20 years, ₹40,000 EMI qualifies for approximately ₹41 lakhs loan. Your credit score, employment type, and age also factor into eligibility.
What credit score is needed for home loan?+
Most banks require a CIBIL score of 750+ for best home loan rates. Score 750–800: Eligible at standard rates. Score 700–750: May get approved with slightly higher rate. Score below 700: Difficult to get approval; work on improving score first. Higher score typically means lower interest rate — even 0.25% rate difference on ₹50L loan saves ₹1.5L over 20 years. Check your free CIBIL report annually.
Can I add a co-applicant to increase eligibility?+
Yes. Adding a co-applicant (spouse, parent, sibling) whose income is also considered can significantly increase your home loan eligibility. If you earn ₹80K/month and spouse earns ₹60K/month, combined eligibility is based on ₹1.4L/month income. Both applicants share repayment responsibility. Female co-applicants also get a 0.05% rate concession from most banks.