How to use this calculator
- Monthly income — net take-home, not CTC. Lenders assess what actually reaches your account.
- Existing EMIs — every running loan: car, personal, education, credit card instalments.
- Interest rate and tenure — the loan terms you expect. Longer tenure raises eligibility but costs far more in total interest.
How lenders decide
The key measure is FOIR — Fixed Obligation to Income Ratio, the share of your income already committed to EMIs.
Available EMI capacity = (Income × FOIR limit) − Existing EMIs
Most Indian lenders cap total EMIs at 40–55% of net monthly income. Higher incomes are usually allowed a higher ratio, because more is left over in absolute terms after fixed costs.
| Monthly income | Typical FOIR cap |
|---|---|
| Under ₹30,000 | 40% |
| ₹30,000 – ₹60,000 | 45% |
| ₹60,000 – ₹1,20,000 | 50% |
| Above ₹1,20,000 | 55% |
Once your EMI capacity is known, it's converted back into a loan amount using the standard EMI formula at the given rate and tenure.
LTV — the second constraint
Separately, RBI norms cap how much of the property value can be financed:
- Property up to ₹30 lakh — up to 90%
- ₹30–75 lakh — up to 80%
- Above ₹75 lakh — up to 75%
Your actual limit is the lower of the income-based and LTV-based figures.
Worked example
Net income ₹80,000, a car EMI of ₹8,000, 8.5% interest, 20-year tenure.
| Step | Working | Amount |
|---|---|---|
| FOIR cap (50%) | 50% × ₹80,000 | ₹40,000 |
| Less existing EMI | ₹40,000 − ₹8,000 | ₹32,000 |
| Loan at 8.5%, 20 yrs | — | ≈ ₹37,00,000 |
| Minimum down payment (20%) | — | ≈ ₹9,25,000 |
| Property affordable | — | ≈ ₹46,25,000 |
Clearing that ₹8,000 car EMI first would lift eligibility to about ₹46 lakh — roughly ₹9 lakh more borrowing capacity from one decision.
What raises and lowers eligibility
Raises it
- Adding a co-applicant — a working spouse's income is combined, often the single biggest lever.
- Closing small loans — each ₹5,000 of EMI removed adds roughly ₹5–6 lakh of capacity.
- Longer tenure — but see the warning below.
- A credit score above 750 — improves both approval odds and the rate offered.
- Documented variable pay — some lenders count a portion of consistent bonuses.
Lowers it
- Credit card balances carried month to month.
- Frequent job changes or short tenure at current employer.
- Score below 700, which may mean rejection or a materially higher rate.
- Irregular income without at least two to three years of filed returns.
Common mistakes
- Using CTC instead of net take-home. Lenders don't count what you never receive.
- Forgetting stamp duty, registration and interiors — budget about 10% of property value in cash beyond the down payment. See the stamp duty calculator.
- Borrowing the maximum offered. Maximum eligibility is not the same as comfortable affordability.
- Applying to several lenders in quick succession, which generates multiple hard enquiries and dents your score.
- Overlooking processing fees, legal charges and mandatory insurance.
Frequently Asked Questions
How much home loan can I get on a ₹50,000 salary?
Typically around ₹22–25 lakh over 20 years at prevailing rates, assuming no existing EMIs. Exact eligibility depends on the lender's FOIR policy, your credit score and the tenure chosen.
What is FOIR?
Fixed Obligation to Income Ratio — the proportion of your net monthly income already going towards EMIs. Most lenders cap total EMIs at 40–55% of income.
Does a co-applicant increase eligibility?
Yes, substantially, if the co-applicant has income. Their earnings are added to yours, and both become jointly liable for repayment.
What credit score do I need?
Above 750 gives the best rates and smoothest approval. Between 700 and 750 is usually workable. Below 700 often means rejection or a noticeably higher rate.
How much down payment is required?
At least 10–25% of property value depending on the price bracket, since RBI caps loan-to-value at 75–90%. Stamp duty and registration are on top of that.
Should I take the longest tenure available?
It raises eligibility but increases total interest sharply. A longer tenure is worth taking only if the shorter one genuinely strains your monthly budget.
Do lenders count my variable pay?
Some do, typically a portion of consistent bonuses or incentives supported by two to three years of documentation. Policies vary widely.
Can self-employed people get a home loan?
Yes, though lenders usually want two to three years of filed income tax returns and audited financials, and may apply a slightly stricter FOIR.
Related calculators and guides
Official sources: Reserve Bank of India
Disclaimer. This calculator provides estimates for general guidance only and is not financial, tax or legal advice. Rates, rules and limits change, and your own situation may differ. Please verify current figures with the relevant authority or a qualified professional before acting on them.