How is home loan eligibility calculated?

Banks typically allow loan EMI up to 40-50% of monthly income. Eligibility = (Net Monthly Income × 0.50 − Existing EMIs) × Loan Tenure Factor.

How can I increase my loan eligibility?

Add a co-applicant (spouse/parent), repay existing loans, increase income through additional sources, maintain credit score above 750, and extend loan tenure.

What credit score is needed for home loan?

A CIBIL score of 750+ gets the best home loan interest rates. Score 700-749 may get loans with slightly higher rates. Below 650 makes loan approval difficult.

Does salary account in the same bank help loan eligibility?

Yes. Banks offer preference and sometimes better rates to existing salary account holders. Some banks offer pre-approved loans to account holders.

What is FOIR in loan eligibility?

FOIR (Fixed Obligation to Income Ratio) is total EMIs ÷ net income. Banks prefer FOIR below 40-50%. Higher FOIR reduces loan eligibility.

✅ Loan Eligibility Calculator

Find How Much Loan You Can Get Based on Salary 2026

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📋 How Banks Calculate Loan Eligibility

Banks use FOIR (Fixed Obligation to Income Ratio) — your total EMI obligations (existing + new) should not exceed a % of your income:

Loan Type	Typical FOIR Limit	Income Range
Home Loan	40–50%	All income levels
Personal Loan	40–50%	Above ₹25K/month
Car Loan	50–55%	All income levels

Example: ₹80,000 income, ₹10,000 existing EMI, 50% FOIR → Max new EMI = ₹30,000

💡 How to Increase Your Loan Eligibility

Add co-applicant (spouse/parent) — their income gets added
Pay off existing loans before applying — reduces FOIR burden
Longer tenure → lower EMI → higher eligibility (but more interest)
Improve CIBIL score to 750+ — unlocks better rates and higher amounts
Include all income sources: salary + rent + freelance + bonus

FAQs

How many times salary do banks give as home loan?

Most banks give home loans of 60–72 times monthly net salary. So ₹80,000/month net → eligible for ₹48–58 lakh home loan. For income above ₹1 lakh/month, some banks stretch to 80x. The multiplier reduces with existing EMIs and lower CIBIL scores.

Does loan eligibility differ between banks?

Yes — significantly. FOIR limits, income multipliers, and how they treat variable income (bonuses, freelance) vary by bank. Always apply to 2–3 banks and compare. NBFC (non-bank finance companies) typically have higher eligibility but also higher interest rates.