Banks work out how much to lend from the EMI your income can carry, not from your salary alone. Existing EMIs come off first, and the loan can't be more than a set share of the property's value.
Here's the calculation banks use and what it means on common incomes.
How banks decide
EMI room = take-home pay × FOIR − existing EMIsLoan = EMI room ÷ EMI per ₹1 lakh × ₹1 lakhLoan is also capped at 90%, 80% or 75% of the property's valueFOIR, the fixed obligations to income ratio, is usually 50% to 60%. Banks also look at your credit score, age (loans usually end by 60 to 70) and job stability.
| Property value | Most a bank can lend (RBI) |
|---|---|
| Up to ₹30 lakh | 90% |
| ₹30 lakh to ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
Worked examples
Example: ₹1 lakh a month, ₹10,000 car EMI, 8%, 20 years
EMI room: 50% × ₹1,00,000 − ₹10,000 = ₹40,000.
At 8% for 20 years each ₹1 lakh costs ₹836 a month, so the loan is about ₹47.8 lakh.
On a ₹75 lakh flat that leaves a ₹27.2 lakh down payment, plus stamp duty and registration.
Example: Same income, no other EMIs, 30 years
EMI room ₹50,000 and ₹734 per lakh: about ₹68.1 lakh, but with ₹1.12 crore of interest over the loan.
Once you know the loan, see the full EMI schedule with the home loan EMI calculator.
How to use this calculator
- Enter your monthly take-home pay, and a co-applicant's if any.
- Enter the EMIs you already pay.
- Set the share of income your bank allows for EMIs, usually 50% to 60%.
- Enter the rate, tenure and property price.
FAQs
How much home loan can I get on a ₹1 lakh salary?
With no other EMIs, about ₹59.8 lakh over 20 years or ₹68.1 lakh over 30 years at 8%, if your bank allows 50% of take-home pay for EMIs.
What is FOIR?
The fixed obligations to income ratio: the share of your monthly income that can go on EMIs. Banks commonly use 50% to 60%, higher for larger incomes.
Does a co-applicant increase eligibility?
Yes. Their income is added, and their existing EMIs are counted too.
Does the bank fund stamp duty and registration?
Usually not. Banks generally exclude them from the property value, so they come out of your savings.
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.