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Loan Calculators



Housing Loan - Salaried

This calculation is used by bank to determine loan eligibility of salaried individuals on basis of income as well as property.

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  • Bankers calculate income eligibility on the basis of net income received by individuals and property eligibility based on Agreement Value and Market Value of the property.
  • Normally salary received in the last 6 months and reflected in salary slip is observed and net income per month is considered for loan eligibility calculation.
  • Different slab rates are considered for calculation, e.g. if a person’s salary is INR 50,000 then 65% of his / her net salary (after taking into account any existing EMI) is considered. This 65% is assumed to be applied towards EMI of proposed loan and remaining 35% is assumed to be used for household purposes.
  • These slabs are very important and are known as Fixed Obligation to Income Ratio, commonly called FOIR.
  • Banks can fund maximum 80% of Agreement or Market Value whichever is lower. The ratio to calculate this is called as Loan-To-Value ratio or LTV ratio.
  • The above calculator shows the loan eligibility based on income, EMI on eligible loan amount, LTV ratio on eligible loan amount and the FOIR considered.
  • There is a bifurcation made for Resident and Non-Resident persons. This is because the FOIR considered for NRIs in banks is lower.