Home Loan Planning: Eligibility, Prepayment and Yield
Updated 2026-10-30
Quick answer: Lenders cap your total EMIs at a share of net income (FOIR), so eligibility = present value of the EMI you can afford. Part-prepayments early in the loan save the most interest, especially if you keep the EMI and shorten the tenure. Compare rental yield with your loan rate before buying to rent out.
Open the Home Loan Eligibility Calculator →
Eligibility
Max EMI = net monthly income × FOIR − existing EMIs. The loan amount is what that EMI repays over your tenure at the lender's rate. Credit score, age and the property's loan-to-value limit can reduce it further.
Prepayment
On floating-rate home loans taken by individuals for non-business purposes, RBI rules bar prepayment penalties. Prepaying ₹5 lakh on a ₹50 lakh, 8.5%, 20-year loan at the start and keeping the EMI ends it about 4 years early.
FAQs
Should I prepay or invest?
Compare your loan's post-tax interest cost with the post-tax return you can reasonably expect, and keep an emergency fund before prepaying.