Indian banks determine home loan eligibility using two metrics: your Fixed Obligation to Income Ratio (FOIR), which caps total EMIs at 40–50% of gross monthly income, and Loan-to-Value (LTV), which allows loans of 75–90% of the property value. As a rule of thumb, multiply your monthly income by 60 to estimate your loan eligibility at 8.5% over 20 years — for example, a ₹1,00,000 monthly income supports roughly a ₹60 lakh loan.
Quick answer: How much you can borrow depends mainly on your FOIR (total EMIs should stay under 40–50% of income) and the bank's LTV cap (75–90% of property value). At current 2026 rates — from 8.50% at SBI up to 9.80% at ICICI and 13.30% at Axis Bank for weaker profiles — a monthly income of ₹50,000 supports around ₹30 lakh, ₹1,00,000 supports around ₹60 lakh, and ₹2,00,000 supports around ₹1.2 crore, using the income × 60 rule of thumb. To raise your eligible amount, clear existing loans before applying, add a co-applicant, keep your CIBIL score above 750, and opt for a longer 25–30 year tenure — you can always prepay later without penalty on a floating-rate loan.
How Banks Calculate Home Loan Eligibility
Banks use two key metrics: Fixed Obligation to Income Ratio (FOIR) and Loan-to-Value (LTV).
- FOIR: Total monthly EMIs (including new home loan) ≤ 40–50% of gross monthly income
- LTV: Loan up to 75–90% of property value (higher value = lower %)
2026 Home Loan Rates — Major Banks
| Bank | Rate (Floating) | Processing Fee |
|---|---|---|
| SBI | 8.50% – 9.65% | 0.35% (max ₹10,000) |
| HDFC Bank | 8.70% – 9.40% | 0.5% (min ₹3,000) |
| ICICI Bank | 8.75% – 9.80% | 0.5% |
| Axis Bank | 8.75% – 13.30% | 1% (min ₹10,000) |
| Kotak Mahindra | 8.75% – 9.60% | 0.5% |
Quick Eligibility Calculator
Rule of thumb: Monthly income × 60 = approximate loan eligibility (at 8.5%, 20-year tenure)
- ₹50,000/month → ~₹30 lakh loan
- ₹1,00,000/month → ~₹60 lakh loan
- ₹2,00,000/month → ~₹1.2 crore loan
5 Tips to Maximise Your Home Loan
- Clear existing loans — reduce FOIR before applying
- Add a co-applicant — joint income increases eligibility
- Maintain CIBIL score above 750 — unlocks lowest rates
- Choose longer tenure — 25-30 years reduces EMI, increases eligible amount
- Pre-approved loan — many builders offer exclusive rate tie-ups
Documents Required for Home Loan
- Salary slips (last 3 months) / ITR (last 2 years for self-employed)
- Bank statements (last 6 months)
- PAN + Aadhar
- Property documents (sale agreement, EC, approved plan)
