How banks calculate home loan eligibility
Lenders look at your FOIR (Fixed Obligation to Income Ratio): the share of your monthly income that can go towards EMIs. Most allow 50% to 60% of net monthly income, minus any EMIs you already pay. They then work out the loan that this EMI can repay over your tenure.
Separately, RBI caps the loan at a percentage of the property's value (LTV, loan-to-value), so you need to pay the rest as a down payment:
| Loan amount | Maximum LTV |
|---|---|
| Up to ₹30 lakh | 90% of property value |
| ₹30 lakh to ₹75 lakh | 80% of property value |
| Above ₹75 lakh | 75% of property value |
Home loan eligibility by salary
| Net monthly salary | EMI you can afford | Approximate loan |
|---|---|---|
| ₹30,000 | ₹15,000 | ₹17 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 | ₹86 lakh |
Use the EMI calculator on our home page to test different amounts, rates and tenures.
How to increase your home loan eligibility
- Add an earning co-applicant such as your spouse or a parent
- Choose a longer tenure to lower the EMI (you can prepay later)
- Close small loans or credit card dues before applying
- Keep your credit score above 750
- Declare all income: rental income, bonuses and incentives count with proof
- Compare lenders; their FOIR limits and income assessment differ
Frequently asked questions
Roughly ₹25 to ₹30 lakh over 20 years at around 8.5%, if you have no other EMIs. Adding a co-applicant or choosing a longer tenure can increase it.