Скачать или смотреть Find out your home loan eligibility

How much loan will the bank give you?

➡️ As a rule of thumb, the EMI you pay for a Home Loan should not exceed 40-50% of your total household income minus your obligations towards other debts.

➡️ Several factors are considered while approving a home loan, one of them is the Fixed Obligation to Income Ration (FOIR) calculation. As a rule of thumb, the lenders restrict FOIR to a maximum of 40-50% of the monthly income.

Since it is difficult to estimate monthly expenses of a borrower, they consider it to be around 50%

Salary - 50% monthly expenses - current EMI’s is what is left for your home loan EMI.

Bank try to get some margin here as well so that some amount is left for savings.

✅ Thus higher the salary and lower the current EMIs the more chances of higher home loan.

Example

For Instance you earn 1,00,000 rupees per month and you are serving a car loan of Rs. 15,000 per month then the FOIR calculation would be

50% of 1,00,000 – 15,000/868 x 1,00,000
Here, you will only be eligible for a loan amount of 40,32,258

Disclaimer: Bank use several factors to decide home loan amount. FOIR is one of them and cannot be the only factor. But you can use FOIR calculation to understand how much loan you can expect depending upon your current financial situation.