Buying your first home feels exciting but also scary when you don’t know how much loan you can actually get. Banks talk about FOIR, CIBIL, and eligibility, but what does it really mean in plain language?
Here’s a simple, honest guide to help you calculate your home loan eligibility so you can plan confidently.
1. What is FOIR, and why does it matter?
FOIR (Fixed Obligations to Income Ratio) is a tool banks use to check how much of your monthly income is already going into EMIs, rent, and other fixed commitments.
- Most banks allow 50-65% FOIR for salaried people.
- This means if your monthly income is ₹60,000, banks will allow EMIs up to ₹30,000–₹39,000.
Example:
If you earn ₹50,000/month, have no existing EMIs, you may get a home loan with an EMI of up to ₹25,000–₹32,500.
At the current 8.40% interest (July 2025) for 20 years, this translates to a loan of around:
- EMI ₹25,000 ⇒ Loan ~₹26-27 Lakhs
- EMI ₹32,500 ⇒ Loan ~₹34-35 Lakhs
(Exact figures vary bank to bank, but this helps you estimate.)
2. What is CIBIL, and how does it affect your loan?
Your CIBIL score is a 3-digit number (300–900) showing your credit health. It’s like your financial report card.
- 750+ = Good. Fast approval with better rates.
- 650–749 = Okay. You may get a loan but might need to explain past delays.
- Below 650 = Difficult. You may face rejection or high interest rates.
- Tip: Always check your CIBIL score before applying and clear any small dues to improve your score.
3. How do banks calculate “loan eligibility” on your income?
Banks check:
- Your monthly take-home salary
- Existing EMIs or credit card dues
- FOIR (how much EMI you can safely handle)
- CIBIL score for your repayment track record
- Stability of your job/business income
Then they estimate the maximum loan amount you can repay without stressing your finances.
4. What you can do to increase your loan eligibility
- Repay existing loans: Clear personal loans or high EMIs before applying.
- Add a co-applicant: Spouse or parents’ income can boost eligibility.
- Choose a longer tenure: 25–30 years tenure reduces EMI and increases loan eligibility (though you pay more interest over time).
- Maintain a clean credit history: Pay EMIs and credit card bills on time.
- Show additional income: Rental income, incentives, or other steady income can be included.
5. Market Trends: What’s happening in 2025?
- Home loan volumes and values are growing: Disbursals in top cities rose by 10–15% in FY25.
- Average loan size is up: In major cities, the average home loan stands at ₹45 lakh, with Guwahati and NE averages close to ₹80 lakh.
- Premium homes in demand: Loans above ₹80 lakh now make up 15% of all disbursals.
- Women borrowers on the rise: One in five home loans now goes to a woman borrower, reflecting a shift toward more inclusive homeownership.
5. Final tips for first-time buyers
- Don’t just check “how much loan you can get.” Check “how much EMI you can comfortably pay” so you can live stress-free after buying your home.
- Keep a down payment of at least 20–25% ready, as most banks fund 75–80% of property value.
- Check for processing fees (0.25–0.50%), insurance costs, and prepayment flexibility.
- Compare interest rates across 2–3 banks. Currently, 7.95%–8.55% (July 2025) is common for salaried buyers with good credit.
Ready to check your eligibility?
If you are earning ₹40,000–₹80,000/month, you can likely plan a ₹20–₹50 Lakhs loan, depending on your EMI comfort.
- If you want a free eligibility check without impacting your CIBIL score, reach out to us. We’ll guide you step-by-step so your first home buying journey is clear, smooth, and stress-free.
Conclusion: You can buy your home smartly
Your income, FOIR, and CIBIL aren’t scary—they are tools to help you know your limits and buy a home confidently.
- Clear your basics
- Know your EMI comfort
- Check your CIBIL
- Plan your down payment
- Then go house-hunting with peace of mind.
If you found this guide helpful, share it with your friends or family who are planning to buy their first home.
For any doubts or a personal eligibility check, drop a comment or message.