The FOIR formula, LTV limits, and exact eligibility by income level — no jargon
The Short Answer
Most banks will lend you approximately 55–60 times your net monthly salary as a home loan (assuming no existing EMIs, 8.5% rate, 20-year tenure). On ₹50,000/month take-home, that's roughly ₹28–29 lakh. On ₹1 lakh/month, roughly ₹55–60 lakh.
But the exact number depends on FOIR (income check) and LTV (property check) — both matter.
The Two Eligibility Checks Banks Run
1. FOIR — The Income Check
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income banks allow for all EMI payments. Most banks cap this at 40–50% for salaried employees.
Formula: Max EMI = (Net Monthly Income × FOIR%) − Existing EMIs
If you earn ₹80,000/month, have a ₹5,000 car loan EMI, and bank uses 50% FOIR:
Max total EMI = ₹80,000 × 50% = ₹40,000
Max home loan EMI = ₹40,000 − ₹5,000 (existing) = ₹35,000
Eligible loan at 8.5%, 20 years = approximately ₹40.3 lakh
2. LTV — The Property Check
LTV (Loan-to-Value) limits how much the bank will fund relative to the property's registered value:
Loans up to ₹30 lakh: LTV up to 90% (down payment = 10%)
Loans ₹30L–₹75L: LTV up to 80% (down payment = 20%)
Loans above ₹75L: LTV up to 75% (down payment = 25%)
Your eligible loan = the lower of the FOIR-based amount and the LTV-based amount.
Home Loan Eligibility by Salary — Quick Table
Based on 50% FOIR, 8.5% interest rate, 20-year tenure, no existing EMIs:
Net Monthly Salary
Max Monthly EMI
Eligible Loan Amount
Property Value (80% LTV)
₹30,000
₹15,000
≈ ₹17.3L
≈ ₹21.6L
₹50,000
₹25,000
≈ ₹28.8L
≈ ₹36.0L
₹75,000
₹37,500
≈ ₹43.2L
≈ ₹54.0L
₹1,00,000
₹50,000
≈ ₹57.6L
≈ ₹72.0L
₹1,50,000
₹75,000
≈ ₹86.4L
≈ ₹1.08 Cr
₹2,00,000
₹1,00,000
≈ ₹1.15 Cr
≈ ₹1.44 Cr
*Illustrative only. Actual amounts vary by bank, CIBIL score, and employment type.
5 Ways to Increase Your Home Loan Eligibility
Pre-close existing loans. A ₹5,000 car loan EMI directly reduces your home loan eligibility by ₹5+ lakh. Closing it first can be transformative.
Add a co-applicant. Adding your spouse or parent as a co-borrower combines both incomes for FOIR calculation. A couple earning ₹60K + ₹40K can get loans calculated on ₹1L combined income.
Improve your CIBIL score. A 750+ CIBIL score gets you better rates (saving lakhs) and more flexible FOIR from lenders. Pay all credit card dues on time for 6 months before applying.
Choose a longer tenure. Opting for 25 years vs 20 years reduces the required EMI, increasing the eligible loan amount — though you'll pay more total interest.
Declare all income sources. Some banks count variable pay, rental income, and freelance income. A higher declared income means higher eligibility.
What Banks DON'T Tell You
The "eligibility" amount is the maximum the bank will consider. You don't have to borrow the full amount. A good rule: keep your home loan EMI under 30% of take-home (not 50%) to leave room for other goals, emergencies, and a lifestyle. The bank's maximum is not your personal optimal.
Pro Tip:
Apply to 2–3 banks simultaneously. Different banks use different FOIR percentages and credit policies. HDFC might approve ₹45L where a PSU bank approves ₹38L for the same applicant. Compare not just eligibility but also rate, processing charges, and prepayment flexibility.
Calculate Your Exact Eligibility
Enter your income, existing EMIs, and preferred rate to get your personalised home loan eligibility with full breakdown.
On ₹50,000 net monthly salary with no existing EMIs, most banks will approve approximately ₹28–29 lakh home loan (at 8.5%, 20 years, 50% FOIR). If you opt for a 25-year tenure, this can go up to ₹28–30 lakh. Adding a co-applicant with income can significantly increase this. Your final eligibility also depends on your CIBIL score and employer category.
Yes, significantly. A 750+ CIBIL score gets you the best interest rates (which increases the loan amount you can afford with the same EMI), and banks may offer higher FOIR limits. A score below 650 often results in rejection or higher interest rates that reduce your effective eligibility. Check your score at CIBIL.com (once/year free) before applying.
Standard documents: Last 3 months' salary slips, 6 months' bank statements, last 2 years' Form 16 / ITR, PAN card, Aadhaar, passport photos, employment letter, and property documents (sale agreement, title deed, NOC from builder). Self-employed applicants need 3 years' ITR and CA-certified financials. Having documents ready speeds up processing significantly.
