What is FOIR in home loan eligibility?

FOIR — Fixed Obligation to Income Ratio — is the share of your net income a bank will let go towards all EMIs combined. A common cap is 50%. If you earn ₹80,000 net and already pay ₹10,000 in EMIs at a 50% FOIR, your new home-loan EMI can be at most ₹30,000.

Does a longer tenure increase my eligibility?

Yes. A longer tenure lowers the EMI for a given loan, so the same EMI capacity supports a larger loan. It increases eligibility but also increases the total interest you pay over the life of the loan.

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How Much Home Loan Can I Get on My Salary?

Q: How much home loan can I get on my salary?

Banks cap your total monthly loan payments at roughly 40–55% of your net monthly income (the FOIR). Whatever EMI capacity is left after your existing EMIs is converted into a loan amount using the interest rate and tenure. As a rough guide, a clean salary can support a loan of around 55–65 times your monthly income, but the exact figure depends on rate, tenure and your obligations.

By Paarth · Published 19 July 2026 · Updated 19 July 2026

Banks don't lend against your salary directly — they lend against how much EMI your salary can comfortably carry. The rule they use is the FOIR: your total monthly EMIs, including the new one, are capped at roughly 40–55% of your net monthly income (50% is a common default). Whatever room is left after your existing EMIs becomes your new EMI budget, and that budget is converted into a loan amount using the interest rate and tenure. As a rough shortcut, a clean salary with no other loans can often support around 55–65 times your monthly income.

Find your eligible loan amountEnter income, existing EMIs, rate and tenureOpen Eligibility Calculator →

The FOIR method, step by step

Every bank works through the same three steps:

Start with net monthly income — your take-home pay, not CTC.
Apply the FOIR cap — say 50%. This is the most that can go towards all EMIs combined.
Subtract existing EMIs — car loan, personal loan, credit-card dues. What remains is the EMI available for the home loan.

That available EMI is then run backwards through the standard loan formula, using the offered interest rate and tenure, to arrive at the maximum loan.

A worked example

Suppose your net income is ₹75,000 a month and you have no existing EMIs. At a 50% FOIR, your EMI budget is ₹37,500. At an 8.75% interest rate over 20 years, that EMI supports a loan of roughly ₹42 lakh. Now add a ₹5,000 car-loan EMI: your budget drops to ₹32,500 and the eligible loan falls to about ₹36.8 lakh. A single existing EMI knocked ₹5 lakh off the eligibility — which is exactly why clearing small loans before applying helps.

What raises or lowers your eligibility

Existing EMIs and card dues — every rupee of existing EMI directly reduces your home-loan budget.
Interest rate — a lower rate means a given EMI supports a bigger loan.
Tenure — a longer tenure lowers the EMI per lakh, raising eligibility (but increasing total interest).
Credit score — a strong score can earn a better rate and a higher FOIR; a weak one does the opposite.
Co-applicant — adding an earning spouse's income can substantially raise the combined eligibility.
Age — nearing retirement shortens the maximum tenure, which trims eligibility.

Try it with a co-applicant's income tooSee how existing EMIs and tenure change the numberCheck my eligibility →

Don't forget the property's loan-to-value cap

Eligibility from income is only half the story. Banks also fund only a portion of the property's value — typically up to about 75–90% depending on the loan size — so you must arrange the rest as a down payment, plus stamp duty and registration. Your final loan is the lower of what your income supports and what the property value allows. If your income clears ₹42 lakh but the flat is worth ₹40 lakh, the loan is limited by the property, and you still fund the down payment on top.

Frequently asked questions

Is eligibility based on CTC or take-home?

On net take-home income, not gross CTC. Deductions like PF and tax are excluded, so use your actual bank credit each month.

Will a co-applicant really help?

Yes — a co-applicant's income is added to yours for the FOIR calculation, which can lift eligibility significantly, especially for a dual-income couple.

How can I increase my eligibility?

Clear small existing loans, add an earning co-applicant, opt for a longer tenure, and maintain a strong credit score to qualify for a better rate.

Paarth builds the free calculators on PropertiesOnline.in and has been writing about money and everyday tools in India for over 15 years. These guides are practical and honest, not financial advice — your lender's actual policy is the final word.