Home Loan Eligibility in India 2026: How Banks Actually Calculate It

You’ve found the home.

Then the bank says, “You’re eligible for less than expected.” 😳

It’s rarely random. Banks follow a simple formula for home loan eligibility in India.

Here it is. 👇

1. FOIR: The Number That Decides Everything

Most banks allow 40–55% of your income towards EMIs.

Example:

Income ₹1,00,000 × 50% = ₹50,000

Existing EMI: ₹10,000

Left for home loan EMI: ₹40,000

That’s roughly a ₹46 lakh loan at 8.5% over 20 years. 💡

📊 2. CIBIL Score

✔ 750+ → best rates, smooth approval

✔ 700–750 → likely approval, higher rate

✔ Below 700 → many banks hesitate 🔴

🏠 3. Your Down Payment

Banks never fund 100% of the price.

✔ Up to ₹30 lakh → up to 90% funded

✔ ₹30–75 lakh → up to 80%

✔ Above ₹75 lakh → up to 75%

Stamp duty and registration cost extra. ⚠️

📈 How to Boost Your Eligibility

✔ Clear small loans and card dues first

✔ Add a co-applicant with steady income

✔ Choose a longer tenure

✔ Fix errors in your CIBIL report

💙 At Houzay, We Say: Know Your Loan Amount Before the Site Visit.

It keeps your budget honest and your shortlist realistic.

Not sure what budget works for you? Let’s work it out together. 🏠🔑

By: Sayani Houzay