Work out the loan amount your salary supports, or the loan an EMI you can pay will buy. Includes the income share lenders allow and the EMIs you already run.
How much home loan can I get on my salary?
As a rule of thumb, banks allow your total EMIs to reach 40% to 50% of your net monthly income, and the figure rises with income. On ₹1,00,000 take-home with no other loans, at 50% and 8.5% over 20 years, that is roughly ₹57,61,542. Existing EMIs come straight off the top, which is why clearing a personal loan before applying can be worth lakhs of eligibility.
What is FOIR and why does it decide my loan?
FOIR is the fixed obligation to income ratio: the share of your net monthly income a lender will let all your instalments take. Most Indian lenders use 40% to 50%, going higher for large salaries and lower for small ones. It is the single number that turns a salary into a loan amount, which is why it is an input here rather than a hidden constant.
Does a longer tenure get me a bigger loan?
Yes, and it is the cheapest lever you have on eligibility. The same ₹50,000 EMI at 8.5% supports ₹50,77,485 over 15 years and ₹57,61,542 over 20. But the interest rises with it. Use the tenure to qualify, then prepay to shorten it once the loan is running.
Will the bank actually lend me this much?
Not necessarily. This is the ceiling the maths allows. A lender also looks at your credit score, how long you have been employed, whether your income is salaried or from business, and the loan to value cap on the property, which is usually 75% to 90%. Any one of those can bring the sanction below this figure.
Should I count my spouse’s income?
You can if you apply jointly. A co-applicant’s net income is added to yours and the same FOIR is applied to the total, so joint eligibility is usually far higher than either of you alone. Both of you become liable for the whole loan, and both can claim the tax deduction on your share.
What counts as income for this?
Take-home pay, after tax and after your PF deduction. Lenders often add a share of a reliable annual bonus and any rental income, and they discount variable pay. Enter the number that actually reaches your bank account each month, not your CTC, which is roughly 30% higher and will give you a loan you cannot service.