Before you start visiting flats or talking to builders, it helps to know one number: how much home loan can I actually get? Banks don't decide this at random. They mainly look at how much EMI your salary can support, how much the property is worth, your age, and your credit history. Once you understand the two main limits – the EMI limit and the loan-to-value limit – you can estimate your eligibility in a few minutes. This guide shows you how, with worked examples.
Once you have a loan amount in mind, check the EMI, total interest and yearly schedule in seconds.
Open the EMI calculator →Limit 1: How much EMI can your salary support?
Banks use a measure often called FOIR (fixed obligations to income ratio). In simple terms, it is the share of your monthly take-home income that can go towards all your EMIs together – the new home loan plus any existing car loan, personal loan or credit card EMIs. Many lenders allow somewhere around 40% to 60%, with higher limits for higher incomes.
Example: your take-home salary is ₹60,000 a month and the bank allows 50%.
- Maximum total EMIs: 50% of ₹60,000 = ₹30,000.
- If you have no other loans, the whole ₹30,000 can go to the home loan.
- If you already pay a ₹8,000 car loan EMI, only ₹22,000 is left for the home loan.
Turning an EMI into a loan amount
Once you know the maximum EMI, the loan amount depends on the interest rate and tenure. At 8.5% for 20 years, every ₹1 lakh of loan costs about ₹868 a month. So a ₹30,000 EMI supports a loan of about 30,000 ÷ 868 × 1 lakh ≈ ₹34.6 lakh.
| Situation (8.5% interest) | Max home loan EMI | Approx. loan amount |
|---|---|---|
| ₹60,000 salary, no other loans, 20 years | ₹30,000 | ₹34.6 lakh |
| ₹60,000 salary, ₹8,000 existing EMI, 20 years | ₹22,000 | ₹25.4 lakh |
| ₹60,000 salary, no other loans, 15 years | ₹30,000 | ₹30.5 lakh |
| ₹60,000 salary, no other loans, 30 years | ₹30,000 | ₹39.0 lakh |
| ₹60,000 + spouse ₹40,000 (joint), 20 years | ₹50,000 | ₹57.6 lakh |
Two things stand out. First, existing EMIs reduce your home loan a lot – closing a small car or personal loan before applying can raise your eligibility by several lakh. Second, a longer tenure increases the loan you can get, but it also means much more interest over the years, as explained in our guide on how EMI is calculated.
Limit 2: The loan-to-value (LTV) rule
Even if your salary supports a big EMI, banks won't fund the whole price of the house. The Reserve Bank of India sets maximum loan-to-value ratios for housing loans:
| Loan amount | Maximum loan as % of property value |
|---|---|
| Up to ₹30 lakh | 90% |
| Above ₹30 lakh and up to ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
The rest is your down payment. On a ₹50 lakh flat, the loan can be at most 80%, or ₹40 lakh, so you need at least ₹10 lakh of your own money. On top of that, stamp duty, registration and other charges – which vary by state – are usually not covered by the loan, so budget several percent of the property price for them.
Putting both limits together
Your actual eligibility is the lower of the two limits. Continuing our example:
- Salary limit (₹60,000 take-home, no other loans, 20 years): about ₹34.6 lakh.
- LTV limit on a ₹50 lakh flat: ₹40 lakh.
- So the likely loan is about ₹34.6 lakh, and you would need around ₹15.4 lakh as down payment, plus stamp duty and registration.
If that down payment is too high, the options are a cheaper property, adding a co-applicant, a longer tenure, or saving for longer before buying.
Other things banks check
- Credit score: a CIBIL score of around 750 or more usually gets better rates and easier approval. Late payments and many recent loan applications hurt it.
- Age: most lenders want the loan to end by around retirement age (often 60–65), so older applicants may be offered shorter tenures – and therefore smaller loans.
- Job stability: steady employment (and for self-employed people, a few years of filed returns) matters.
- Property documents: the bank checks that the property has a clear title and approvals.
How to increase your eligibility
- Close or reduce small existing loans and credit card balances first.
- Apply jointly with an earning spouse or parent.
- Choose a longer tenure (and plan to prepay later).
- Improve your credit score before applying – pay every bill on time for a few months.
- Compare lenders: a slightly lower interest rate raises the loan amount the same EMI can support.
Frequently asked questions
How much home loan can I get on a ₹50,000 salary?
If a bank allows 50% of take-home pay as EMI and you have no other loans, that is a ₹25,000 EMI. At 8.5% for 20 years, it supports a loan of roughly ₹28.8 lakh. Actual amounts vary by lender.
What is FOIR in a home loan?
FOIR is the share of your monthly income that goes to all your loan EMIs together. Banks use it to decide how much new EMI you can afford.
Can a bank give a loan for 100% of the property price?
No. RBI rules limit housing loans to 75–90% of the property value depending on the loan size. The rest must be paid as a down payment.
Does a co-applicant increase home loan eligibility?
Yes. An earning co-applicant's income is usually added, which increases the EMI the bank will allow and therefore the loan amount.