Banks and NBFCs use a metric called FOIR — Fixed Obligation to Income Ratio — to decide how much loan to approve. FOIR is the percentage of your monthly income that goes towards existing EMIs plus the new loan EMI you are applying for. Most lenders cap this at 40–55% of your net monthly income.

Here is how it works in practice: If your net monthly income is ₹60,000 and you already pay ₹10,000 in EMIs, the lender sees ₹50,000 as free income. At 50% FOIR, you can afford a maximum new EMI of ₹25,000. Based on your interest rate and tenure, the calculator then works backwards to find the loan amount that generates exactly that EMI. CIBIL score, employment type, and age also affect final approval — but FOIR is the core calculation.

Loan Eligibility by Salary — Home Loan & Personal Loan

Assumptions: No existing EMIs. Home loan at 8.75% for 20 years. Personal loan at 12% for 5 years. FOIR 50%.

Monthly Salary (Net)	Max Eligible Home Loan	Home Loan EMI	Max Personal Loan	Personal Loan EMI
₹25,000	₹13.0 lakh	₹12,500	₹5.5 lakh	₹12,500
₹30,000	₹15.6 lakh	₹15,000	₹6.7 lakh	₹15,000
₹40,000	₹20.8 lakh	₹20,000	₹8.9 lakh	₹20,000
₹50,000	₹26.0 lakh	₹25,000	₹11.1 lakh	₹25,000
₹75,000	₹39.0 lakh	₹37,500	₹16.7 lakh	₹37,500
₹1,00,000	₹52.0 lakh	₹50,000	₹22.2 lakh	₹50,000
₹1,50,000	₹78.0 lakh	₹75,000	₹33.4 lakh	₹75,000
₹2,00,000	₹1.04 crore	₹1,00,000	₹44.5 lakh	₹1,00,000

These are estimates with no existing EMIs. Each ₹10,000 of existing EMI reduces eligibility by approximately ₹8–10 lakh for a home loan and ₹3–4 lakh for a personal loan. Enter your actual figures in the calculator above for a personalised result.

How Interest Rate and Tenure Affect Your Eligible Loan Amount

Monthly salary ₹50,000, no existing EMIs, FOIR 50% — maximum EMI available = ₹25,000.

Loan Type	Interest Rate	Tenure	Max Eligible Loan	Total Interest Paid
Home Loan	8.50%	20 years	₹26.6 lakh	₹37.5 lakh
Home Loan	8.75%	20 years	₹26.0 lakh	₹38.9 lakh
Home Loan	9.25%	20 years	₹24.8 lakh	₹41.8 lakh
Home Loan	8.75%	15 years	₹23.9 lakh	₹26.1 lakh
Home Loan	8.75%	25 years	₹27.6 lakh	₹52.5 lakh
Personal Loan	11.00%	5 years	₹11.6 lakh	₹3.4 lakh
Personal Loan	12.00%	5 years	₹11.1 lakh	₹3.8 lakh
Personal Loan	14.00%	5 years	₹10.3 lakh	₹4.7 lakh

Key insight: A longer tenure increases your eligible loan amount (lower EMI per lakh) but you pay significantly more interest overall. A 20-year home loan at 8.75% costs ₹38.9 lakh in interest on ₹26 lakh — you pay back almost 2.5x the original loan. Shorter tenure = less interest, same eligibility roughly maintained if income supports it.

How to Use This Calculator

Enter Monthly Income — use your net take-home salary, not CTC or gross
Enter Other Monthly EMIs — total of all existing loan EMIs currently running (home, car, personal, credit card minimum payments)
Enter Interest Rate — check your bank’s current rate. Home loan: 8.5–9.5%, personal loan: 10.5–14%, car loan: 7.5–9%
Set Loan Tenure — home loans go up to 30 years, personal loans up to 5–7 years, car loans up to 7 years
Results show instantly — Eligible Loan Amount, Estimated Monthly EMI, and Total Interest Payable

Tip: To check home loan eligibility for a joint application (with spouse), add both net incomes together as your monthly income input. Banks consider combined household income for joint home loans.

How to Increase Your Loan Eligibility

If the calculator shows a lower amount than you need, here are concrete steps that actually work — ranked by how quickly they take effect:

Action	Impact	Time to Effect
Close small running loans or credit card outstanding	Reduces existing FOIR — directly increases available EMI capacity	Immediate
Add co-applicant (spouse/parent with income)	Banks add both incomes — can increase eligibility by 50–100%	Immediate
Choose longer tenure (e.g. 25yr instead of 20yr)	Lowers required EMI per lakh — increases eligible amount by 8–12%	Immediate
Improve CIBIL score above 750	Unlocks lower interest rates — improves eligibility indirectly	3–6 months
Increase income (salary hike, additional income)	Direct and most powerful lever — every ₹10K income = ₹8–10L more home loan eligibility	Varies
Negotiate lower interest rate with bank	Each 0.5% rate drop increases eligible amount by ~₹1.5–2 lakh	At time of application

The fastest and most effective combination: clear one existing EMI + add co-applicant. This can increase eligibility by 60–80% without any income change.

Frequently Asked Questions (FAQ)

With a net monthly salary of ₹50,000 and no existing EMIs, you are eligible for approximately ₹26 lakh home loan at 8.75% for 20 years (FOIR 50%). If you have an existing car loan EMI of ₹8,000, your eligibility drops to approximately ₹21–22 lakh. Use the calculator above with your exact figures for an accurate estimate.

FOIR (Fixed Obligation to Income Ratio) is the share of your net monthly income that goes towards all loan EMIs combined — existing plus new. Most Indian banks and NBFCs use 40–55% FOIR for salaried applicants. SBI and HDFC typically allow up to 50%. For higher-income applicants (above ₹1 lakh/month), some banks allow up to 60% FOIR.

Yes — enter the interest rate and tenure for whichever loan you are checking. For home loan, use 8.5–9.5% and 15–30 years. For personal loan, use 11–14% and 3–5 years. For car loan, use 7.5–9% and 5–7 years. The eligible amount will update automatically based on your inputs.

Most major banks (SBI, HDFC, ICICI, Axis) require a minimum CIBIL score of 700–750 for home loan approval. A score above 750 qualifies you for the best interest rates. Below 700, most banks will either reject or charge a higher rate. This calculator estimates eligibility by income and EMI — actual approval depends on your credit score as well.

Yes, but existing EMIs reduce your available FOIR capacity. Enter your total current EMIs in the calculator to see how much additional loan you can take. For example, with ₹80,000 monthly income and ₹20,000 in existing EMIs, your available EMI capacity at 50% FOIR = ₹20,000. This translates to roughly ₹19–20 lakh more in home loan eligibility.