The quick rule: about 60× your monthly take-home
Banks start from your net monthly income (take-home after PF and tax) and allow total EMIs up to a fixed share of it — the fixed obligation to income ratio (FOIR). For most salaried borrowers it is about 50%, rising to 55–65% at higher incomes at some lenders. At 8% for 20 years, each ₹1 lakh of loan costs ₹836 a month, so a 50% FOIR lets you borrow about 60 times your monthly take-home (about 68× on 30 years).
Home loan eligibility table by salary
| Take-home / month | Max EMI (50%) | Loan, 20 yrs | Loan, 30 yrs | Property (with LTV) |
|---|---|---|---|---|
| ₹25,000 | ₹12,500 | ₹14.94 lakh | ₹17.04 lakh | ₹16.6 lakh |
| ₹35,000 | ₹17,500 | ₹20.92 lakh | ₹23.85 lakh | ₹23.25 lakh |
| ₹50,000 | ₹25,000 | ₹29.89 lakh | ₹34.07 lakh | ₹33.21 lakh |
| ₹75,000 | ₹37,500 | ₹44.83 lakh | ₹51.11 lakh | ₹56.04 lakh |
| ₹1,00,000 | ₹50,000 | ₹59.78 lakh | ₹68.14 lakh | ₹74.72 lakh |
| ₹1,50,000 | ₹75,000 | ₹89.67 lakh | ₹1.02 crore | ₹1.2 crore |
| ₹2,00,000 | ₹1,00,000 | ₹1.2 crore | ₹1.36 crore | ₹1.59 crore |
| ₹3,00,000 | ₹1,50,000 | ₹1.79 crore | ₹2.04 crore | ₹2.39 crore |
At 8%, no existing EMIs. The property column applies RBI’s loan-to-value caps (90% up to ₹30 lakh, 80% up to ₹75 lakh, 75% above) to the 20-year loan. Banks also cap the tenure so the loan ends by retirement age.
Existing EMIs reduce your eligibility
Suppose you take home ₹1,00,000 and already pay a ₹15,000 car-loan EMI. The bank’s 50% limit is ₹50,000, so only ₹35,000 is left for the home loan — about ₹41.84 lakh over 20 years instead of ₹59.78 lakh. Closing a small personal loan or car loan before applying can raise your eligibility by more than ten times the amount you prepay. Credit-card balances also count: lenders often treat 5% of the outstanding as a monthly obligation.
Other factors banks look at
- Credit score: 750+ gets the best rates; below 700 you may face a higher rate or lower amount.
- Age and tenure: the loan must usually end by 60–70, so a 45-year-old may get only 15–20 years, which lowers eligibility.
- Employer and job stability: government, PSU and large-company employees often get better terms.
- Co-applicant: adding a spouse’s or parent’s income increases eligibility; both incomes are added before applying the FOIR.
- Variable pay: banks may count only part of bonuses and incentives, or average them over two years.
- Down payment: the LTV caps mean you always need 10–25% of the property value, plus stamp duty and registration, from your own funds.
From CTC to eligibility
Offer letters quote CTC, but banks work from take-home. Our CTC to in-hand guides convert a package into monthly take-home — for example, 12 LPA is about ₹85,388 a month, which supports a 20-year loan of about ₹51.04 lakh at 8%; 25 LPA (about ₹1,56,127 a month) supports about ₹93.33 lakh.
Eligible amount vs comfortable amount
The bank’s maximum assumes half your take-home goes to EMIs. Many planners suggest keeping the home-loan EMI to 30–40% of take-home so you can still save, handle rate rises (each 0.25% adds about ₹16 per lakh) and cope with a job change. Borrowing less than the maximum is often the wiser choice.