Last updated 12 Nov 2026
Lenders do not multiply your salary by a fixed number. They work out the largest monthly EMI your income can carry after your other EMIs, then convert that EMI into a loan amount using the tenure and the rate. As a rough guide for an example, a take-home income of ₹75,000 a month with no other EMIs can support a home loan in the region of ₹41 lakh to ₹47 lakh, depending on the tenure. The real figure depends on the lender, your age, your credit report and the property.
This guide shows the method step by step, with worked examples at several incomes, so you can estimate before you apply. The figures are illustrations, not offers.
The method in four steps
- Step 1: add up your eligible monthly income (salary, and other income the lender accepts).
- Step 2: apply the lender's FOIR (fixed obligations to income ratio) limit to find the total EMI you can carry.
- Step 3: subtract your existing EMIs and card commitments. What remains is the room for the new home loan EMI.
- Step 4: convert that EMI into a loan amount using the tenure and the interest rate, then check it against the property value and the share the lender will finance.
FOIR is the share of monthly income that goes to fixed obligations. Lenders often accept a higher share at higher incomes and a lower share at lower incomes. In every example below we use a flat 50 per cent as an illustration. This is not any lender's rule.
What decides the amount
Factors in the home loan amount
| Factor | How it changes the amount |
|---|---|
| Monthly income | A higher eligible income allows a higher EMI |
| FOIR limit | The share of income the lender allows for EMIs, set by the lender |
| Existing EMIs | Car loans, personal loans and card dues use up room before the home loan starts |
| Tenure | A longer tenure lowers the EMI per lakh, so a larger loan fits the same income |
| Age | Lenders limit the age at the end of the loan, so older applicants get shorter tenures and smaller amounts |
| Interest rate | A higher rate raises the EMI per lakh and lowers the amount; see current rates on the interest rates page |
| Credit report | Late payments can lower the amount or lead to refusal |
| Co-applicant | Adding an earning co-applicant raises the combined income |
| Property value and LTV | The loan cannot exceed the share of the property value the lender finances; the rest is your down payment |
Worked examples at different incomes
All examples assume a 20-year tenure and an example rate of 9 per cent a year (an illustration, not a quote), which gives an EMI of roughly ₹900 for every ₹1 lakh borrowed. FOIR is taken as 50 per cent of monthly take-home income. Amounts are rounded.
Estimated home loan by monthly income (example rate 9 per cent a year, 20 years, FOIR 50 per cent)
| Monthly take-home income | Existing EMIs | EMI available for the home loan | Indicative loan amount |
|---|---|---|---|
| ₹40,000 | None | ₹20,000 | About ₹22 lakh |
| ₹75,000 | None | ₹37,500 | About ₹41.7 lakh |
| ₹75,000 | ₹10,000 | ₹27,500 | About ₹30.6 lakh |
| ₹1,50,000 | None | ₹75,000 | About ₹83.4 lakh |
| ₹1,50,000 | ₹25,000 | ₹50,000 | About ₹55.6 lakh |
Look at rows two and three. The same income of ₹75,000 supports about ₹11 lakh less when ₹10,000 of EMIs are already running. Clearing a small loan before you apply can raise the amount more than a small pay rise would.
How the tenure changes the answer
A longer tenure lowers the monthly EMI per lakh, so a larger loan fits within the same EMI room. It also means more interest paid over the life of the loan. Take a monthly take-home of ₹75,000, no other EMIs and the same example rate of 9 per cent a year:
Effect of tenure on the indicative loan amount (EMI room ₹37,500)
| Tenure | Approximate EMI per ₹1 lakh | Indicative loan amount |
|---|---|---|
| 10 years | ₹1,267 | About ₹29.6 lakh |
| 20 years | ₹900 | About ₹41.7 lakh |
| 30 years | ₹805 | About ₹46.6 lakh |
Going from 20 to 30 years adds only about ₹5 lakh to the loan, while the interest paid over the extra ten years rises sharply. Use the EMI by tenure calculator to see the trade-off for your own numbers. The tenure you get is also limited by your age, as lenders cap the age at the end of the loan.
Adding a co-applicant
A co-applicant, often a spouse or a parent, adds their income to the calculation. Suppose you take home ₹75,000 and a co-applicant takes home ₹40,000, with no other EMIs. At FOIR of 50 per cent, the combined EMI room is ₹57,500. At the example rate of 9 per cent a year over 20 years, that supports about ₹63.9 lakh, against ₹41.7 lakh alone. The lender reads both credit reports and both sets of papers, so a weak report on one side can reduce the benefit. Where the co-applicant is also a co-owner, there may be tax and ownership points; confirm with an adviser. See joint home loan and co-applicant vs guarantor.
Salary is not the only income lenders count
- Fixed salary and regular allowances are usually counted in full or in large part.
- Variable pay and bonus are often counted at a reduced share, and only if they have been steady.
- Rental income may be counted if it is documented and the property is let.
- Other income, such as interest or a pension, may be counted if the proof is clear.
- Income not shown in bank statements or returns is usually not counted.
What each lender accepts differs, so the amount in your hands may be lower or higher than the table suggests.
What else caps the loan: the property
Even if your income supports a large EMI, the loan cannot exceed the share of the property value the lender finances, called loan-to-value (LTV). The valuation is done by the lender and may be lower than the price you agreed. The gap, plus stamp duty and registration, must come from your own funds. For example, if you agree to buy a flat for ₹60 lakh and the lender values it at ₹55 lakh and finances a share of that valuation, the loan is limited by that share, whatever your salary could carry. Read home loan down payment for how to plan the amount.
Ways to raise your eligible amount
- Close or prepay small loans and clear card dues before applying.
- Add a co-applicant with steady income and a clean report.
- Choose a longer tenure, if you accept the extra interest.
- Show all income that can be documented, including rent and steady variable pay.
- Fix errors on your credit report and keep EMIs on time for some months before applying.
- Increase the down payment so that the loan you need is smaller.
How LOANZ 360 helps
LOANZ 360 is a loan aggregator, not a lender. Before any application goes to a lender, it compares your details with each partner lender's published eligibility criteria, so you apply only where you are likely to qualify. This helps avoid unnecessary credit enquiries; too many lender checks in a short time can lower your score. Our team prepares a credit assessment summary before the file reaches a lender. The lender decides the amount. Try the home loan eligibility calculator or the eligibility check.
Frequently asked questions
How much home loan can I get on a salary of ₹50,000?
There is no fixed multiple. At FOIR of 50 per cent, an EMI room of ₹25,000 supports about ₹27.8 lakh over 20 years at the example rate of 9 per cent a year (an illustration, not a quote). Existing EMIs, your age, credit report and the property can change this. The lender decides.
Do lenders use gross or net salary?
It varies. Some use gross income with a FOIR limit, others use take-home pay. Ask the lender how it counts your income. The examples here use take-home pay to stay conservative.
Does a longer tenure always mean a bigger loan?
It lowers the EMI per lakh, so a larger loan fits the same EMI room, but the gain flattens as the tenure grows. You also pay more interest in total. Lenders cap tenure by your age at maturity.
Can I get a home loan if my spouse works and I do not?
Yes, the earning spouse can apply, and you can be a co-applicant, especially if you are a co-owner. The lender assesses the income of the earning applicant, and the co-applicant's papers are also reviewed.
Do existing EMIs reduce my home loan eligibility?
Yes. Lenders deduct existing EMIs and card commitments from the EMI room before working out the home loan. Clearing a small loan before applying can raise the amount.
Is the amount the same at every lender?
No. Each lender has its own FOIR rules, income acceptance, tenure and age limits, and LTV. Matching your details to published criteria before applying saves time and avoids unnecessary enquiries.
Does my credit score change how much I can borrow?
It can. A weak report may lower the amount, raise the price or lead to refusal.
Related reading: home purchase loans, home loans, loan eligibility and FOIR, home loan approval tips, how to reduce home loan EMI, home loan documents, FOIR in the glossary, LTV, home loan eligibility calculator, EMI calculator.
See Home Purchase Loan Ask an advisor about it
More guides on this loan
- Stamp Duty and Registration in Telangana for Property Buyers
- Stamp duty and registration charges by state: how they work and where to check
- PMAY housing scheme guide: urban and rural help to buy or build a home
- Loan pre-approval vs pre-qualification: what is the difference?
- Joint home loan: who can apply and what changes