Home Loan Eligibility Calculator (India)

Indian banks typically lend up to 5-6 times annual income, with monthly EMI limited to 40-50% of net monthly income. The exact limit depends on the lender and your credit score. Floating-rate home loans carry no prepayment penalty for individual borrowers under RBI rules.

Standard model

Maximum borrowing

₹2,33,712

≈ · European Central Bank rate, 2026-09-14

Monthly payment

₹2,028

Stress rate

10.50%

Binding constraint

PAYMENT_CAPACITY

This is an estimate. Lenders also consider credit history, outgoings, and their own criteria.

Gross annual incomeiYour total annual income before tax - lenders use this to calculate borrowing limits

₹

Property priceiThe purchase price you want to test affordability against

₹

Interest rateiExpected mortgage interest rate - used to calculate the monthly payment at your maximum borrowing

TermiMortgage duration in years - longer terms mean lower payments but more total interest

Buyer typeiYour buyer status - first-time buyers may qualify for government programs or reduced stamp duty

First-timeSubsequentBuy to let

Monthly debt payments reduce your borrowing capacity

Borrowing capacity by income

How your maximum loan changes with gross income

APRA requires lenders to assess whether you can service the loan at your contract rate plus a 3 percentage point buffer:

assessment rate  = contract rate + 3%

max monthly payment = gross monthly income × 35% − existing monthly debts

max borrow = PMT⁻¹(max monthly payment, assessment rate / 12, term in months)
           = max monthly payment × [ (1+i)^n − 1 ] / [ i(1+i)^n ]

The 3% buffer is why lenders quote a lower borrowing capacity than the rate you will actually pay would suggest. It was raised from 2.5% to 3.0% in October 2021.

This page prefills 8.50% from the Reserve Bank of India — WALR on fresh rupee loans for housing, published 2026-06-01.

This is a reference average, not a personal offer. Your lender's rate depends on your credit score, deposit size, and loan type. The rate you are actually quoted may be meaningfully higher or lower.

The rate field is editable. Type your lender's quoted rate to see your own numbers.

Prepayment is where the real saving is

Floating-rate home loans in India carry no prepayment penalty for individual borrowers under RBI rules. A lump-sum prepayment of Rs 5 lakh in year 3 on a Rs 80 lakh, 20-year loan at 8.5% removes approximately Rs 27 lakh from the total interest bill. Early lump-sum prepayments are particularly effective because almost all of each EMI in the early years is interest.

Rules sourced from Standard estimate — RBI guidelines suggest EMI-to-income ratio of 40–50%; conservative buffer applied. Last reviewed 2026-08-01.

How your borrowing limit is calculated

Lenders apply two types of constraints. The first is an income multiple or debt-to-income ratio - a cap on the loan size relative to your gross income. The second is a stressed affordability assessment: your income must support the monthly payment at a higher, hypothetical interest rate. Whichever constraint produces the lower loan amount is the binding one. The calculator shows which rule limits you under the binding constraint field.

What this doesn't include

This is an estimate based on published regulatory rules. Individual lenders also consider your credit score, employment stability, nature of income (self-employed versus salaried), existing financial commitments, and the property type. A lender may offer less than the regulatory maximum for any of these reasons. The figure here is a starting point for conversations with lenders, not a guaranteed offer.

Why your lender may quote a different figure

Lenders have discretion to lend below the regulatory cap and to grant exceptions above it in limited cases. The stress test rate varies by lender - some use a rate higher than the regulatory floor. Bonus, commission, or overtime income may be discounted by 50% or more. If the bank's figure is significantly lower than this calculator suggests, ask them which specific constraint is limiting your application.

Frequently asked questions

What is a mortgage stress test?

A stress test assesses whether you could still afford repayments if interest rates rose. In the UK, lenders test at roughly 3% above the revert rate. In Canada, the qualifying rate is the higher of your contract rate plus 2% or 5.25%. In Australia, APRA requires a 3% buffer above the loan rate. The stress test is often the binding constraint - not the income multiple.

How does a larger deposit affect how much I can borrow?

A larger deposit reduces the loan-to-value ratio, which can unlock better interest rates and remove mortgage insurance requirements. It does not directly increase most lenders' income multiples, but a lower rate means a given income can support a larger loan amount. In some countries, exceeding certain LTV thresholds (e.g., 90% in Ireland) requires regulatory exceptions.

Does the result include stamp duty or closing costs?

No. This calculator shows the maximum loan amount. Stamp duty, legal fees, survey costs, and other purchase costs must come from your savings separately. In most countries you cannot borrow to cover these costs, and lenders will verify your ability to fund them independently.

Why might my bank offer me less than the calculator shows?

Lenders apply their own internal criteria on top of regulatory requirements. Your credit score, monthly outgoings, existing debt commitments, employment type, and the specific property can all lead a lender to offer less. The calculator applies the regulatory maximum - individual lender decisions sit below that ceiling.

Do existing debts reduce how much I can borrow?

Yes, significantly. Car loans, student loans, credit card minimum payments, and personal loan commitments all reduce the income available to service a mortgage. Add your monthly debt payments in the optional field above to see how much they reduce your borrowing capacity under the debt-to-income or income multiple rules in your country.

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Written and maintained by the Reckoner team

The repayment engines behind this site are tested against worked examples published by FRED, the Bank of Canada, the Bank of England and the Reserve Bank of Australia. Found an error? Contact us

Last reviewed September 15, 2026