"How much home loan can I get on my salary?" is the first question every buyer asks — and banks answer it with a formula, not a gut feel. Two numbers decide your limit: how much EMI your salary can carry (FOIR) and how much of the property price the lender will finance (LTV). This guide shows the exact arithmetic, a salary-wise eligibility table, and every factor that moves the number up or down.
The eligibility formula banks actually use
Most Indian banks cap total EMIs — existing plus the new home loan — at 50–55% of net monthly income. This ratio is called FOIR (Fixed Obligations to Income Ratio). The working formula:
Eligible loan = EMI × [1 − (1+r)⁻ⁿ] ÷ r (present value of that EMI at your rate and tenure)
At 8.5% for 20 years, every ₹10,000 of monthly EMI capacity supports roughly ₹11.5 lakh of loan. The bank then applies the second cap: LTV, typically 75–90% of the property value (90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh, 75% above ₹75 lakh, per RBI norms). Your sanction is the lower of the FOIR number and the LTV number.
Home loan eligibility by salary (2026 indicative table)
Assuming age under 40, no existing EMIs, 50% FOIR, 8.5% interest and a 20-year tenure:
| Monthly net salary | Max EMI (50%) | Eligible loan (20 yr) | Eligible loan (30 yr) |
|---|---|---|---|
| ₹30,000 | ₹15,000 | ≈ ₹17.3 lakh | ≈ ₹20.4 lakh |
| ₹50,000 | ₹25,000 | ≈ ₹28.8 lakh | ≈ ₹34.1 lakh |
| ₹75,000 | ₹37,500 | ≈ ₹43.2 lakh | ≈ ₹51.1 lakh |
| ₹1,00,000 | ₹50,000 | ≈ ₹57.6 lakh | ≈ ₹68.1 lakh |
| ₹1,50,000 | ₹75,000 | ≈ ₹86.4 lakh | ≈ ₹1.02 crore |
So for the most-asked case — how much home loan can I get on a ₹50,000 salary — the answer is roughly ₹28–29 lakh on a 20-year tenure, or about ₹25 lakh if you already pay a ₹5,000 EMI elsewhere. A co-applicant's income adds directly to the pool: two ₹50,000 salaries can support roughly ₹57–58 lakh.
What increases (or shrinks) your eligible amount
- Existing EMIs subtract rupee-for-rupee from your EMI capacity — a ₹10,000 car EMI cuts eligibility by about ₹11.5 lakh.
- Tenure: stretching 20 → 30 years adds roughly 18% to the eligible loan, at the cost of substantially more total interest.
- Credit score: above 750 keeps you at the best FOIR and rate; below 700 many lenders trim eligibility or load the rate by 0.1–0.5%.
- Age: banks want the loan to end by retirement (58–65). A 45-year-old borrower may be forced into a shorter tenure, lowering eligibility.
- Income proof: salary slips get the cleanest treatment; business income is averaged over 2–3 years and sometimes haircut 10–20%.
- LTV: a bigger down payment removes the property-value cap — eligibility then depends purely on income.
A worked example: ₹60,000 salary, one bike EMI
Rahul nets ₹60,000/month and pays a ₹4,000 bike EMI. FOIR capacity = 50% × 60,000 = ₹30,000; minus the bike EMI leaves ₹26,000 for the home loan EMI. At 8.5% over 20 years that is about ₹29.9 lakh. He is buying a ₹45 lakh flat, so 80% LTV allows ₹36 lakh — income is the binding constraint, and his realistic sanction is ₹29–30 lakh, with ₹15 lakh (33%) down payment. Clearing the bike loan first would lift eligibility to nearly ₹34.6 lakh.
Before you apply: the 3-step readiness check
- Run your income and existing EMIs through the Home Loan Eligibility Calculator for your exact FOIR number.
- Check the EMI on the sanctioned amount with the EMI Calculator — confirm it stays under 40% of take-home for your own comfort, not just the bank's 50%.
- Pull your CIBIL report; fix errors and pay down utilization 2–3 months before applying.
Already have an offer? Read How to Reduce Your Home Loan EMI: 7 Practical Ways and compare lenders with the Home Loan Comparison tool before you sign.