Your salary is the starting point for any home loan. Lenders want to be sure your EMI stays affordable alongside your other commitments, so they look at your net monthly income rather than your gross salary.
The 50% rule of thumb
Most banks allow your total EMIs — including any existing loans — to be roughly 40% to 60% of your net monthly income. This is called the FOIR (Fixed Obligations to Income Ratio). The exact limit depends on the lender, your income level and your overall profile.
A quick example
Say your net monthly salary is ₹1,00,000 and you have no other EMIs. At a 50% FOIR you could afford an EMI of about ₹50,000. At 8.5% interest over 20 years, that EMI supports a loan of roughly ₹57.6 lakh.
Try different amounts in our EMI calculator to see what fits your budget.
What else affects your eligibility
- Credit score — a score of 750 or above usually means better rates and higher amounts.
- Loan tenure — a longer tenure lowers the EMI and can raise your eligibility.
- Co-applicant — adding an earning spouse or parent combines incomes.
- Existing EMIs — closing small loans before applying frees up room.
- Job stability — steady employment strengthens your application.
Figures are illustrative. Actual eligibility and interest rates depend on the lender’s policy and your profile.