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Loan eligibility calculator (based on salary)

  

The bank lets all your EMIs reach a share of income. What is left becomes the new EMI.

100 thousand

% a year
years
More · FOIR
% of income

Banks usually allow 40% to 60%.

Maximum loan

$5,761,542

EMI of $50,000 a month for 20 years.

Banks also check credit score, age and property value.

Total interest
$6,238,458
Total paid
$12,000,000

Next: Loan EMI calculatorThe EMI and schedule for that loan.

How lenders size a loan

Banks start with the share of your net monthly income that can go to all your EMIs together, called the fixed obligation to income ratio (FOIR). It is usually 40% to 60%, and often higher for larger incomes. Take away the EMIs you already pay, and what is left is the most the new EMI can be. The tool turns that EMI into a loan amount with the standard EMI formula, at your rate and tenure.

Income is only the first limit. For home loans, the RBI caps the loan-to-value ratio: up to 90% of the property value for loans up to ₹30 lakh, 80% from ₹30 lakh to ₹75 lakh, and 75% above that. The rest is your down payment. Lenders also look at your age, since the loan usually has to end by 60 to 70, at your credit score (750 or more gets the best rates) and at how stable your job is.

A longer tenure raises eligibility but costs a lot more interest. At 8.5%, a ₹30,000 EMI supports about ₹34.6 lakh over 20 years and ₹39 lakh over 30. The extra 10 years add about ₹31.5 lakh in interest for ₹4.4 lakh more loan. Check the full cost in the EMI calculator, and work out net pay first with the salary calculator. Paying down a card balance raises eligibility, so see the balance transfer calculator. For an existing loan, the refinance calculator shows whether switching pays off.

Sources

What this calculator does not account for

  • Your credit score and the lender’s own policy, which decide the final offer.
  • Property value limits (loan-to-value) and fees.

How this is calculated

Formula: Affordable EMI turned into a loan amount

max EMI =income × FOIR − existing EMIs · loan =EMI × (1 − (1 + r)^−n) ÷ r

What the symbols mean

  • FOIRFixed obligation to income ratio. Most banks allow 40% to 60%, often 50%.
  • rMonthly interest rate: yearly rate ÷ 12.
  • nTenure in months.

Good to know

  • A longer tenure raises eligibility but adds a lot of interest. Check the total in the [EMI calculator](/calculators/loan-emi).

Read the full methodologyFound an error? Contact us

Worked examples

Each example is worked out by the same code as the calculator above.

₹80,000 income with a car loan

At 50% FOIR the EMI budget is ₹40,000. A ₹10,000 car EMI leaves ₹30,000. At 8.5% over 20 years, that supports a loan of ₹34.6 lakh.

Clearing the car loan first

Without the ₹10,000 EMI, the full ₹40,000 is available, which supports ₹46.1 lakh. Closing a small loan raises eligibility by ₹11.5 lakh.

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<iframe src="/embed/loan-eligibility" title="Loan eligibility" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>

Questions

How much home loan can I get on ₹50,000 salary?

At 50% FOIR, 8.5% and 20 years, with no other EMIs, about ₹28.8 lakh, with an EMI of ₹25,000.

How much loan can I get on a ₹1 lakh salary?

About ₹57.6 lakh at 50% FOIR, 8.5% and 20 years. Existing EMIs reduce this one-for-one.

What is FOIR?

The share of your monthly income that can go to EMIs, including the new one. Banks usually allow 40% to 60%.

How can I increase my loan eligibility?

Close small loans first, add a co-applicant's income, choose a longer tenure, or keep a credit score above 750 for a better rate.

Does a co-applicant increase home loan eligibility?

Yes. Lenders add the co-applicant's net income and subtract their EMIs, then apply FOIR to the total.

How much down payment do I need?

At least 10% for a home loan up to ₹30 lakh, 20% up to ₹75 lakh, and 25% above that, under RBI loan-to-value limits. Stamp duty and registration are usually extra.

Does a longer tenure always help?

It raises eligibility but adds a lot of interest. 30 years instead of 20 at 8.5% adds about 13% more loan for about 84% more interest.