How Much Home Loan Can I Get on My Salary?
Banks decide your home loan amount from your income, existing EMIs, tenure and the property value. Here is how the calculation works, with salary-wise examples.
Before you visit a single property, it helps to know how much a bank is likely to lend you. Lenders do not pick a number from thin air: they work backwards from how much EMI your income can support, then check that figure against the value of the home. Once you understand the method, you can estimate your own eligibility in a few minutes.
Key takeaways
- Lenders usually allow total EMIs of about 40–50% of your net monthly income (the FOIR).
- At 8.5% for 20 years, every ₹10,000 of EMI supports a loan of roughly ₹11.5 lakh.
- Existing EMIs reduce your eligibility directly, and the loan is also capped at 75–90% of the property value.
Step 1: How much EMI can you afford?
Banks use the Fixed Obligation to Income Ratio (FOIR): the share of your net monthly income that can go towards all your EMIs combined. It is typically 40–50%, and can be higher for high earners. If your take-home pay is ₹1,00,000 and the bank allows 50%, your maximum total EMI is ₹50,000.
Any EMI you already pay — a car loan, a personal loan — comes off that limit first.
Step 2: Turn the EMI into a loan amount
The loan amount is the present value of the EMIs at the loan’s interest rate:
Here r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. You do not need to calculate it by hand — the table below shows the result at 8.5%, assuming 50% of salary goes to the EMI.
| Net monthly salary | EMI (50%) | 15 years | 20 years | 30 years |
|---|---|---|---|---|
| ₹60,000 | ₹30,000 | ₹30,46,491 | ₹34,56,925 | ₹39,01,609 |
| ₹1,00,000 | ₹50,000 | ₹50,77,485 | ₹57,61,542 | ₹65,02,682 |
| ₹1,50,000 | ₹75,000 | ₹76,16,227 | ₹86,42,313 | ₹97,54,023 |
Notice how a longer tenure increases eligibility: the same ₹50,000 EMI supports about ₹57.6 lakh over 20 years but about ₹65 lakh over 30. The catch is cost — a 30-year loan carries far more interest. Our guide to choosing a home loan tenure compares the totals.
Step 3: Subtract existing EMIs
Say you earn ₹1,00,000 a month but already pay a ₹15,000 car EMI. Your room for a home loan EMI falls to ₹35,000, and your 20-year eligibility drops from about ₹57.6 lakh to about ₹40.3 lakh. Closing a small loan before you apply can noticeably raise the amount you qualify for.
Step 4: The property-value cap
Even if your income supports a large EMI, RBI rules cap the loan as a share of the property value (the loan-to-value ratio):
- Up to 90% for loans up to ₹30 lakh
- Up to 80% for loans between ₹30 lakh and ₹75 lakh
- Up to 75% for loans above ₹75 lakh
The rest — plus stamp duty, registration and other costs, which are usually not financed — must come from your own savings.
Other factors lenders look at
- Credit score: a strong score can get you a lower rate, which raises eligibility. See how your credit score changes your rate.
- Age: most lenders want the loan repaid by around 60–70, which can limit the tenure for older applicants.
- Job stability: salaried applicants with steady employment are usually assessed more favourably.
- Co-applicant: adding an earning spouse or parent combines incomes and can increase the loan amount.
Eligible is not the same as comfortable
The maximum a bank will lend is not necessarily what you should borrow. A 50% FOIR leaves half your income for everything else — rent or maintenance, school fees, insurance, savings and emergencies. Many families are more comfortable keeping total EMIs nearer 30–40% of take-home pay. Our article on a safe EMI-to-income ratio explains how to find your limit.
Check your numbers
Use the Home Loan EMI Calculator to test a loan amount: enter it with your expected rate and tenure, and see whether the EMI fits within your budget. Adjust the amount until it does — that is your practical eligibility.
This article is for general information only and is not financial, tax or legal advice. Rates, rules and products change — check current terms with your lender or a qualified adviser. Disclaimer.