Find the home loan amount your income can support, and how much the property value allows under RBI rules.
How it's calculated
- EMI you can afford = take-home × limit% − existing EMIs.
- Loan by income = EMI × (1 − (1 + r)−n) ÷ r, where r is the monthly rate and n the number of months.
- Loan by property = the RBI loan-to-value cap: 90% up to ₹30 lakh, 80% for ₹30–75 lakh, 75% above ₹75 lakh.
- Your estimate is the smaller of the two.
Example
With ₹1,00,000 take-home, no other EMIs, a 50% limit, 8.5% interest and 20 years, your income supports an EMI of ₹50,000, or a loan of about ₹57.6 lakh. For a ₹60 lakh flat, the 80% cap allows ₹48 lakh, so the estimate is ₹48 lakh (EMI about ₹41,656) with a ₹12 lakh down payment.
This is an estimate. Rates, limits and approval depend on the lender and your profile.
Frequently asked questions
How do banks decide home loan eligibility?
Mainly by how much EMI your income can support after existing EMIs, and by the property's value. They also check your credit score, age, job stability and the property's legal papers.
What is the maximum loan against a property's value?
RBI caps home loans at 90% of the property value for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. The rest is your down payment.
What EMI-to-income limit should I use?
Each lender sets its own limit, often depending on income. The 50% default is only an example; ask your bank for the figure it uses.
How can I get a bigger loan?
Close small loans first, add a co-applicant with income, choose a longer tenure, or improve your credit score to get a lower rate.