When you apply for a home loan, the bank isn't really lending against the house — it's lending against your income. The rule that decides how much you'll get is simpler than most people expect, and you can estimate it yourself before you ever walk into a branch.
The rule banks actually use (FOIR)
Lenders cap your total EMIs — this loan plus any existing ones — at roughly 40–50% of your net monthly income. It's called the Fixed Obligations to Income Ratio (FOIR). So the first question isn't 'how expensive is the flat?' but 'how much EMI can my salary comfortably carry?'
Try it on your numbersPrepay vs Invest CalculatorPrepay your home loan or invest the surplus? See which winsFrom salary to loan size
At a typical 8.5% home-loan rate over 20 years, every ₹1 lakh you borrow costs about ₹868 a month in EMI. Flip that around — assuming about 45% of your net income goes to the EMI and you have no other loans, here's the rough loan you'd qualify for:
- ₹50,000/month net salary → about ₹26 lakh
- ₹75,000/month → about ₹39 lakh
- ₹1,00,000/month → about ₹52 lakh
- ₹1,50,000/month → about ₹78 lakh
What moves these numbers
- Tenure: a longer tenure lowers the EMI (so you qualify for more) but costs far more total interest.
- Interest rate: even a 0.5% change noticeably shifts the EMI — it's worth shopping around.
- Existing EMIs: a car loan or credit-card dues eat into the same ~45% budget.
- Down payment: banks fund only about 75–90% of the property value, so you bring the rest, plus registration and fees.
These are lender rules of thumb, not a sanction — your real eligibility also depends on credit score, employer, age and the property itself. Always check the actual EMI for a specific loan before you commit:
EMI CalculatorStill weighing the decision itself? Before taking on the EMI, check whether buying even beats renting and investing the difference for how long you'll stay:
Rent vs Buy — which leaves you richer?Frequently asked questions
- How much home loan can I get on my salary?
- Roughly, banks let your total EMIs reach 40–50% of net monthly income (the FOIR rule). At 8.5% over 20 years, a ₹50,000 salary supports about ₹26 lakh, ₹75,000 about ₹39 lakh, ₹1 lakh about ₹52 lakh, and ₹1.5 lakh about ₹78 lakh — with no other loans.
- What is FOIR in a home loan?
- FOIR (Fixed Obligations to Income Ratio) is the share of your net income that goes to all EMIs combined. Lenders cap it at roughly 40–50%, so existing car loans or credit-card dues directly reduce the home loan you'll qualify for.
- Does a longer tenure increase my loan eligibility?
- Yes — a longer tenure lowers the monthly EMI, so you fit more loan inside the same FOIR budget. The trade-off is far more total interest paid over the life of the loan.