Au Small Finance Bank Ltd. Home Loan Eligibility Calculator

Purchasing your dream home is a significant financial milestone. However, before applying for a home loan, it’s crucial to understand how much you can borrow. This is where Au Small Finance Bank Ltd. Home Loan Eligibility Calculator comes in. By using this tool, you can estimate your borrowing capacity based on your income, age, employment type, credit score, and other key factors.

Knowing your eligibility helps you plan better, reduces rejections, and streamlines the loan application process.

What is Home Loan Eligibility?

Home loan eligibility is the maximum loan amount a bank or financial institution can sanction to an applicant based on their financial profile. Simply put, it determines how much you can borrow comfortably without overstretching your finances.

Banks assess eligibility for multiple reasons:

• Risk Management: Ensures the applicant can repay.
• Financial Planning: Avoids over-borrowing.
• Regulatory Compliance: Aligns with RBI FOIR limits.

By evaluating eligibility upfront, both the bank and borrower gain clarity on the feasible loan amount.

How to Use Au Small Finance Bank Ltd. Home Loan Eligibility Calculator?

1. Enter Monthly Income: Include salary or net monthly business income.
2. Enter Existing EMIs: Required for FOIR calculation.
3. Select Loan Tenure: Up to 30 years as per bank policy.
4. Input Interest Rate: Typically between 11% and 14%.
5. Enter Property Value (Optional): Helps estimate LTV.
6. Click Calculate: Get your maximum eligible loan.

Example Calculation:

• Monthly Income: ₹50,000
• Existing EMIs: ₹5,000
• Interest Rate: 11.5%
• Tenure: 20 years
• Estimated Loan Eligibility: ₹45 lakh (approx.)

How is Home Loan Eligibility Calculated?

Key Terms:

• FOIR (Fixed Obligation to Income Ratio): Measures the share of income used for EMIs. Au SFB allows 65–80%.
• LTV (Loan-to-Value Ratio): Loan as a percentage of property value (60–80%).
• Net Monthly Income (NMI): Income after deductions.
• Credit Score: Minimum required is 650+.

Step-by-Step Example:

• Property Value: ₹1 Cr
• LTV: 70% → Max Loan = ₹70 lakh
• Monthly Income: ₹50,000
• Existing EMIs: ₹10,000
• FOIR: 70% → Available EMI = ₹25,000

Eligible Loan = ₹70 lakh (subject to EMI feasibility)

Formula for Home Loan Eligibility

Eligibility Amount = (NMI × FOIR% × Loan Tenure × Factor) / EMI Factor
  

Worked Example:

NMI = ₹50,000

FOIR = 70%

Tenure = 20 years (240 months)

Interest Rate = 11.5%

Step 1: Max EMI = ₹50,000 × 70% = ₹35,000

Step 2: EMI factor @ 11.5% for 240 months ≈ 0.0102

Step 3: Loan Eligibility = ₹35,000 ÷ 0.0102 ≈ ₹34.3 lakh

Key Factors That Affect Home Loan Eligibility

1. Income Level: Higher income → higher loan eligibility.
2. Age: Max age at loan maturity – 60 (salaried), 70 (self-employed).
3. Employment Type: 2 years salaried, 3 years self-employed required.
4. Credit Score: Minimum CIBIL 650.
5. Property Value: Determines LTV.
6. Existing EMIs: Impacts FOIR.
7. Loan Tenure: Longer tenure = lower EMI burden.
8. Interest Rate: Lower rate = higher eligibility.

Home Loan Eligibility Criteria in India

Parameter	Criteria
Minimum Age	23 years
Maximum Age at Loan Maturity	60 (Salaried), 70 (Self-Employed)
Minimum Monthly Income	₹25,000 (Salaried), ₹50,000 (Self-Employed)
Employment Experience	2–3 years
CIBIL Score	650+
FOIR	65–80%
LTV Ratio	60–80%
Loan Tenure	Up to 30 years
Property Type	Bank-approved residential property

Benefits of Using a Home Loan Eligibility Calculator

• Quick Assessment: Get instant loan eligibility.
• Time-Saving: Avoid applying for unsuitable loan amounts.
• Financial Planning: Plan EMI and purchase budget.
• Bank-Specific: Considers Au Small Finance Bank criteria.

Tips to Improve Your Home Loan Eligibility

• Improve your credit score.
• Clear existing debts to reduce FOIR.
• Opt for a joint home loan to combine incomes.
• Choose a longer loan tenure.
• Show additional income sources.
• Maintain stable employment history.

Home Loan Eligibility Based on Credit Score

Credit Score	Likely Eligibility	Tips if Score is Low
750+	Maximum loan, lower interest rates	Maintain repayment history
650–749	Moderate loan, standard rates	Reduce EMIs, pay off debts
600–649	Limited loan, higher interest	Improve score before applying
<600	Very low eligibility or rejection	Rebuild credit over 6–12 months

Home Loan Eligibility vs. EMI – Difference Explained

Parameter	Home Loan Eligibility	EMI
Definition	Maximum loan bank can approve	Monthly repayment amount
Determined By	Income, FOIR, credit score	Loan amount, tenure, interest
Flexibility	Can increase with co-applicant	Fixed monthly
Purpose	Borrowing capacity planning	Repayment budgeting

Documents Required for Home Loan Eligibility

• Identity Proof: PAN, Aadhaar, Passport
• Address Proof: Utility bills, Rent agreement
• Income Proof: Salary slips, ITR, Form 16, Balance sheet (self-employed)
• Employment Proof: Offer Letter, Employment Certificate
• Property Documents: Agreement, NOC, Title deed, Encumbrance certificate