Home Loan Guide

How Much Home Loan Can You Get on Your Salary in 2026?

Banks use a specific formula to decide your home loan eligibility. Here's exactly how it works — with real salary examples, FOIR calculations, and an instant eligibility calculator.

Easiloan8 min read

Looking to apply soon? Compare lenders after checking your loan amount eligibility to make a confident choice.

Home Loan Eligibility Calculator

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80,000
₹20,000₹5,00,000
8,000
₹0₹1,00,000
20 years
5 yrs30 yrs
8.75%
8%12%

Estimated loan eligibility

₹36.2L

Based on 50% FOIR

Max new EMI

32,000

FOIR used

50%

Remaining FOIR

40.0%

How banks actually calculate your eligibility

Most people think eligibility is just "salary × some multiplier". In reality, banks use a metric called FOIR — Fixed Obligation to Income Ratio — to determine how much new EMI you can take on.

The FOIR formula

FOIR = (All existing EMIs + New home loan EMI) ÷ Net monthly income

Most lenders allow a maximum FOIR of 40%–55% depending on income level. The higher your salary, the more flexibility lenders typically give.

How it plays out in practice

Say your net salary is ₹80,000 per month and you have a car loan EMI of ₹8,000. Your lender allows FOIR up to 50%:

  • Maximum total EMI allowed = 50% × ₹80,000 = ₹40,000
  • Existing EMIs = ₹8,000
  • Max new home loan EMI = ₹40,000 − ₹8,000 = ₹32,000
  • At 8.75% for 20 years, ₹32,000 EMI → eligible loan amount ≈ ₹37.8 lakhs

Salary-wise eligibility examples (2026)

Net monthly salaryAssumed FOIRExisting EMIsEligible loan (20yr @ 8.75%)
₹40,00045%₹0₹18.6L
₹60,00048%₹5,000₹25.2L
₹80,00050%₹8,000₹37.8L
₹1,20,00055%₹10,000₹67.4L
₹2,00,00055%₹20,000₹1.04Cr
₹3,00,00060%₹0₹2.10Cr

Illustrative estimates. Actual eligibility varies by lender, credit score, age, employer type, and property value.

Other factors banks check

FOIR is the main filter, but not the only one. Banks also evaluate:

  • CIBIL score: 750+ for best rates; below 650 can lead to rejection
  • Age: Tenure is typically capped so the loan closes before 70 (or 65 for some lenders)
  • Employment type: Salaried employees in MNCs, PSUs, or large corporates get better terms than freelancers or proprietors
  • Property value: LTV (loan-to-value) is capped at 75%–90% of the property's market value
  • Job stability: Minimum 2 years' employment history; continuous service at current employer of 6–12 months is usually required

5 ways to increase your eligible loan amount

Add a co-applicant

Adding a spouse or parent as co-borrower combines incomes and can increase eligibility by 40%–60%.

Close existing loans

Every ₹5,000 in existing EMIs reduces your eligibility by ~₹5–6 lakhs. Clearing smaller loans before applying helps significantly.

Improve your CIBIL score

Borrowers with 800+ CIBIL often get higher LTV ratios and lower interest rates — both of which improve effective eligibility.

Choose a longer tenure

A 30-year tenure reduces EMI vs 20 years, allowing you to borrow more within the same FOIR. You pay more interest overall, but eligibility improves.

Include all income sources

Rental income, bonus, LTA, and medical allowances can be included by some lenders. Document them with ITR.

Try different lenders

FOIR limits vary — some NBFCs allow up to 65% FOIR for high-income borrowers. Comparing across lenders can reveal more headroom.

⚠ Don't apply to multiple banks simultaneously

Each home loan application triggers a hard inquiry on your CIBIL report and can lower your score by 5–10 points per inquiry. Use an aggregator like Easiloan to get multiple lender quotes with a single application and single credit pull.

Frequently asked questions

Is it net salary or gross salary that banks use?

Most banks calculate FOIR on your net take-home salary (after all deductions including PF, TDS, etc.), not the gross CTC. Some lenders for higher income brackets use gross salary — confirm with your specific lender. Always use your actual bank credit entry, not your offer letter.

Can I get a home loan if I'm on probation?

Most lenders require at least 6 months of continuous employment at your current employer, and some ask for 1 year. During probation, you're unlikely to qualify unless you have strong prior work history and a completed offer letter confirming permanent status.

What if I'm self-employed? How is income calculated?

For self-employed borrowers, banks use the net profit after tax from your last 2–3 years of Income Tax Returns (ITR). Many lenders take a 2-year average and may add back depreciation. The income must be consistent or growing — a declining trend raises flags.

My eligibility is lower than the property price. What can I do?

Options include: (1) adding a co-applicant to increase combined income, (2) making a larger down payment to reduce the required loan amount, (3) choosing a smaller/different property, (4) waiting 6–12 months to clear existing obligations and improve your credit profile.

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