How Much Loan Can I Get on My Salary? Home and Personal Loan Eligibility from ₹25,000 to ₹1.5 Lakh a Month
Lenders don't look at your salary alone — they look at how much EMI it can carry. Here's indicative home and personal loan eligibility for common take-home salaries, and what pushes the number up or down.
By BizToolsIndia Editorial Team · Published · 4 min read
Key takeaways
- Lenders cap all your EMIs together at a share of take-home income called FOIR — often 40–60%.
- At 50% FOIR, 8.5% and 20 years, ₹50,000 a month in hand supports a home loan of about ₹28.8 lakh.
- The same salary supports a much smaller personal loan — about ₹11.5 lakh at 11% over 5 years — because the tenure is shorter.
- An existing ₹10,000 EMI cuts that ₹28.8 lakh home loan to about ₹17.3 lakh.
- For a home loan, the property value also caps the loan: RBI limits it to 75–90% of the value, depending on the loan size.
How lenders work out your eligibility
Banks and NBFCs start with your net monthly income — what lands in your account after tax and PF. They then decide what share of it can go towards EMIs. That share is the FOIR (fixed obligations to income ratio). Whatever is left after your existing EMIs is what the new loan's EMI can be. The loan amount is simply the loan that this EMI pays off over the tenure at the lender's rate.
Available EMI = Net income × FOIR − Existing EMIs
Eligible loan = Available EMI × [1 − (1 + r)^−n] ÷ r
r = monthly interest rate, n = tenure in months
Each lender sets its own FOIR. It's typically 40–50% for lower incomes and can go to 60–65% for higher incomes, and it depends on your employer, credit score and job stability.
Eligibility by salary
Assumptions: no existing EMIs, FOIR of 50%. Home loan at 8.5% for 20 years; personal loan at 11% for 5 years. Your lender's actual rate and FOIR will differ.
| Net monthly salary | Maximum EMI | Home loan (8.5%, 20 yrs) | Personal loan (11%, 5 yrs) |
|---|---|---|---|
| ₹25,000 | ₹12,500 | ₹14.40 lakh | ₹5.75 lakh |
| ₹40,000 | ₹20,000 | ₹23.05 lakh | ₹9.20 lakh |
| ₹50,000 | ₹25,000 | ₹28.81 lakh | ₹11.50 lakh |
| ₹75,000 | ₹37,500 | ₹43.21 lakh | ₹17.25 lakh |
| ₹1,00,000 | ₹50,000 | ₹57.62 lakh | ₹23.00 lakh |
| ₹1,50,000 | ₹75,000 | ₹86.42 lakh | ₹34.49 lakh |
Personal loans are usually capped lower in practice too — many lenders limit them to a multiple of your monthly salary, whatever the EMI maths says.
What changes the number
Take the ₹50,000 home-loan case (₹28.81 lakh) and change one thing at a time:
| Change | Eligible home loan |
|---|---|
| Base case: 8.5%, 20 years, FOIR 50% | ₹28.81 lakh |
| Existing EMIs of ₹10,000 a month | ₹17.28 lakh |
| Interest rate 9% instead of 8.5% | ₹27.79 lakh |
| Tenure 30 years instead of 20 | ₹32.51 lakh |
Existing EMIs hurt the most: every ₹1 of current EMI removes roughly ₹115 of home-loan eligibility at these terms. A longer tenure helps eligibility but costs much more interest over the life of the loan.
The property value limit for home loans
Even if your income supports a bigger loan, RBI's loan-to-value rules cap a home loan at a share of the property's value. You pay the rest as a down payment.
| Loan amount | Maximum loan as % of property value |
|---|---|
| Up to ₹30 lakh | 90% |
| ₹30 lakh to ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
Stamp duty and registration usually aren't included in the property value for this purpose, so budget for them separately.
Four ways to qualify for more
- Close small loans first. Paying off a ₹10,000-a-month car or personal loan can add more than ₹11 lakh of home-loan eligibility.
- Add a co-applicant. A working spouse or parent's income is added to yours, and both can claim tax benefits under the old regime.
- Keep your credit score high. A score above 750 gets better rates and sometimes a higher FOIR. Pay card bills in full and on time.
- Choose a longer tenure, then prepay. A longer tenure lowers the EMI and raises eligibility; prepaying later brings the interest down. See home loan prepayment: reduce EMI or tenure?.
Check your own eligibility
Enter your take-home pay, existing EMIs and the lender's rate in the Loan Eligibility Calculator. Then check the EMI and total interest for the amount you plan to borrow in the Loan EMI Calculator. Not sure what your take-home pay will be? Start with the CTC to In-Hand Salary Calculator.
Frequently asked questions
Is loan eligibility based on gross or net salary?
Most lenders use net monthly income — take-home pay after tax and PF. Some add regular allowances or bonuses if they're shown consistently in your payslips.
What is a good FOIR?
Lenders usually prefer all your EMIs to stay under 40–50% of take-home pay. Staying below that also leaves room in your budget for emergencies.
Does a credit card count as an existing EMI?
Lenders typically count a share of your card's outstanding balance or its minimum due as a monthly obligation, and any card EMIs in full.
Can I get a home loan for the full property price?
No. RBI caps home loans at 75–90% of the property value depending on the loan size, so you'll need a down payment of at least 10–25%, plus stamp duty and registration.