How much home loan can I get on my salary?

Short answer: most banks let all your EMIs together take up 40–50% of your monthly take-home pay. If you take home ₹1.5 lakh a month and have no other loans, that usually means a home loan of roughly ₹85 lakh over 20 years, or a little under ₹1 crore over 30.

Here's how banks get there, so you can work out your own number.

Step 1: What EMI the bank will allow

Banks look at your net monthly income (what lands in your account) and cap your total EMIs at a share of it. This share is called FOIR, short for fixed obligation to income ratio.

• Salaried borrowers usually get 40–50%. Higher incomes tend to get the higher end.
• Existing EMIs come off the top. A car loan, a personal loan or a credit card EMI all count.

Example: ₹1.5 lakh take-home × 50% = ₹75,000 of EMI room. If you're already paying ₹15,000 for a car, the room for the home loan drops to ₹60,000.

Step 2: Turn that EMI into a loan amount

At an interest rate around 8.5%, every ₹1 lakh you borrow costs about:

• ₹870 a month over 20 years
• ₹770 a month over 30 years

So:

• ₹75,000 EMI over 20 years ≈ ₹86 lakh loan
• ₹75,000 EMI over 30 years ≈ ₹97 lakh loan
• ₹60,000 EMI over 20 years ≈ ₹69 lakh loan

Rates change and vary by bank and credit score, so treat these as estimates. A lower rate or a longer tenure raises the number. Existing debts lower it.

Step 3: The bank won't fund the whole flat

Even if your salary supports a big loan, RBI rules cap how much of the property's value a bank can lend:

• up to 90% for homes up to ₹30 lakh
• up to 80% for ₹30–75 lakh
• up to 75% above ₹75 lakh

Stamp duty, registration and interiors usually aren't funded at all. On a ₹1 crore flat, plan to bring ₹30–40 lakh of your own money once those are added. We broke that down in what a ₹1 crore flat really costs.

How to borrow more (if you need to)

• Add a co-applicant. A working spouse's income counts toward the EMI room.
• Close small loans first. Paying off a ₹15,000 car EMI can add ₹15–20 lakh of eligibility.
• Choose a longer tenure. You can always prepay later.
• Keep your credit score above 750. It affects both approval and the rate.

Just because you can doesn't mean you should

The bank's limit is the most it will lend, not what's comfortable. Leave room for school fees, a job change and the rent you may still pay while a flat is under construction.

Want a number that fits your actual monthly budget? Talk to us. We help with home loans as part of our work.