It's the first question almost every home buyer asks: "With my salary, how big a loan will the bank actually give me?" The answer comes down to a simple rule banks use — and once you understand it, you can plan your home purchase with confidence. Let's break it down for a ₹50,000 monthly salary.
The Rule Banks Use: FOIR
Banks calculate eligibility using something called FOIR — Fixed Obligation to Income Ratio. In simple terms, they make sure your total monthly EMIs (including the new home loan) stay under about 50% of your net monthly income.
On a ₹50,000 salary, that means your maximum affordable EMI is roughly ₹25,000 per month — assuming you have no other loans running. If you already pay a ₹5,000 car loan EMI, your home loan EMI capacity drops to about ₹20,000.
How That EMI Translates to a Loan Amount
Working backward from a ₹25,000 affordable EMI at 8.5% interest, here's the loan amount you can get across different tenures:
| Tenure | Affordable EMI | Eligible Loan Amount |
|---|---|---|
| 15 Years | ₹25,000 | ≈ ₹25.4 lakh |
| 20 Years | ₹25,000 | ≈ ₹28.8 lakh |
| 25 Years | ₹25,000 | ≈ ₹31.0 lakh |
| 30 Years | ₹25,000 | ≈ ₹32.5 lakh |
A longer tenure means a bigger eligible loan — but also far more total interest. Test your own salary and existing EMIs in our Loan Eligibility Calculator for an exact number.
Check Your Exact Eligibility
Enter your salary and existing EMIs — see how much loan you qualify for instantly.
Check Eligibility →5 Ways to Increase Your Eligibility
- Add a co-applicant — your spouse's income gets clubbed with yours, often boosting eligibility by 50–100%.
- Close small existing loans — every EMI you clear frees up capacity for the home loan.
- Improve your CIBIL score — a score above 750 gets you a better rate and a higher sanctioned amount.
- Choose a longer tenure — increases the eligible amount (with the interest trade-off).
- Show additional income — rental income, bonuses, or freelance income can be counted.
What About the Down Payment?
Remember, banks finance up to about 80–90% of the property value — you pay the rest as a down payment. So if you qualify for a ₹28 lakh loan, you can target a property worth roughly ₹32–35 lakh, putting in ₹4–7 lakh of your own funds.
Frequently Asked Questions
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