How Much Home Loan Can I Get on My Salary?
A salary-wise guide to home loan eligibility in India — how much loan ₹50,000, ₹1 lakh and ₹1.5 lakh monthly incomes can get, and how banks decide.
The single most common question a first-time home buyer asks is: how much loan will the bank actually give me? The answer comes down to one ratio banks call FOIR — the share of your monthly income they will let go toward all your EMIs combined. Here is how it works, with salary-wise numbers.
The FOIR Rule Banks Use
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income a lender allows toward all EMIs, including the new home loan. Most banks cap FOIR between 50% and 60%. If you already pay a car loan or personal loan EMI, that eats into the same budget.
So the maximum EMI a bank permits = (FOIR × monthly income) − existing EMIs. That EMI is then converted into a loan amount using the interest rate and tenure.
- Higher income → higher absolute EMI budget → larger eligible loan
- Longer tenure (up to 30 years) → lower EMI per lakh → larger eligible loan
- Existing EMIs (car, personal loan, credit card) → directly reduce eligibility
- A co-applicant's income can be clubbed to increase eligibility
Home Loan Eligibility by Salary (Indicative)
Assuming an 8.5% interest rate, 20-year tenure, 50% FOIR and no existing EMIs, here is roughly how much home loan different monthly incomes can support. These are indicative — your actual sanction depends on credit score, employer category, age and the lender.
| Monthly Income | Max EMI (50% FOIR) | Approx. Eligible Loan (8.5%, 20Y) |
|---|---|---|
| ₹40,000 | ₹20,000 | ₹23 lakh |
| ₹50,000 | ₹25,000 | ₹29 lakh |
| ₹75,000 | ₹37,500 | ₹43 lakh |
| ₹1,00,000 | ₹50,000 | ₹58 lakh |
| ₹1,50,000 | ₹75,000 | ₹87 lakh |
| ₹2,00,000 | ₹1,00,000 | ₹1.16 crore |
Get your exact number: Home Loan Eligibility Calculator → https://calculatordesk.in/home-loan-eligibility-calculator
How to Increase Your Eligibility
- Add a co-applicant (spouse/parent) with income — banks club incomes and can nearly double eligibility
- Choose a longer tenure — 30 years instead of 20 lowers the EMI per lakh and raises the eligible amount
- Clear small existing loans and credit-card dues before applying to free up your FOIR
- Keep your credit score above 750 — it unlocks the lowest rates, which raises the loan a given EMI can support
- Declare all income sources — variable pay, rental income and incentives can count toward eligibility
Eligibility vs Affordability
Being eligible for a loan is not the same as being able to afford it comfortably. A bank may sanction an EMI at 50% of your income, but that leaves little room for other goals, emergencies and lifestyle. A healthier target is to keep your home loan EMI under 35–40% of your take-home pay.
Run the EMI at your target loan amount and stress-test it: could you still pay it if rates rose by 2% or your income dipped for a few months? If not, borrow less.
Check the EMI on your target amount: EMI Calculator → https://calculatordesk.in/emi-calculator
Bottom Line
As a rough rule of thumb at current rates, banks lend around 55–60 times your monthly income as a home loan, before adjusting for existing EMIs. A ₹1 lakh monthly income supports roughly a ₹58 lakh loan over 20 years. Add a co-applicant and keep your credit score high to push that higher — but borrow for affordability, not just eligibility.
Frequently Asked Questions
How much home loan can I get on a ₹50,000 salary?
At 8.5% for 20 years with a 50% FOIR and no existing EMIs, a ₹50,000 monthly income supports an EMI of about ₹25,000, which translates to roughly a ₹29 lakh home loan. Adding a co-applicant or choosing a 30-year tenure increases this.
What is FOIR in home loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the share of your monthly income a bank allows toward all EMIs combined, typically 50–60%. The bank subtracts your existing EMIs from this budget to arrive at the maximum EMI — and hence loan — you qualify for.
Does a co-applicant increase home loan eligibility?
Yes. Banks club the incomes of co-applicants (usually spouse or parents), which raises the combined EMI budget and can significantly increase the eligible loan amount. A working co-applicant is one of the fastest ways to boost eligibility.