Home Loan Eligibility by Salary: How Much Loan on ₹30,000, ₹50,000 or ₹1 Lakh?
Rahul, a software tester in Pune, earns ₹50,000 a month in hand and has been eyeing a 2BHK in Wakad that costs about ₹55 lakh. A friend told him “banks give 60 times your salary”. Another said “you’ll barely get ₹25 lakh”. Both were sort of guessing. Your home loan eligibility isn’t a fixed multiple of salary. It depends on how much EMI a bank thinks you can afford each month, the interest rate, the tenure, your credit score and what other loans you’re already paying. Once you understand that, you can work out a realistic number yourself in about five minutes.
This guide shows how banks calculate it, with worked tables for ₹30,000, ₹50,000 and ₹1 lakh salaries at current rates. The figures are illustrative. Your bank’s own assessment is what counts in the end, but you’ll walk in knowing roughly what to expect.
How banks decide home loan eligibility
Banks start with one question: how much of your monthly income can safely go towards EMIs? The answer is a ratio called FOIR.
What is FOIR?
FOIR stands for Fixed Obligation to Income Ratio. It’s the share of your net monthly income that can go towards all your EMIs combined, including the new home loan. Most banks work with a FOIR of 40% to 50% for salaried borrowers. Some go up to 55% or 60% for higher incomes, because a person earning ₹2 lakh a month has more left over after basic expenses than someone earning ₹30,000.
So if your take-home pay is ₹50,000 and the bank uses a 50% FOIR, the maximum total EMI it will allow is ₹25,000. If you already pay ₹8,000 a month on a car loan, only ₹17,000 is left for the home loan EMI.
From EMI to loan amount
Once the bank knows the EMI you can afford, it works backwards using the interest rate and tenure to find the loan that EMI can support. A longer tenure or a lower rate means the same EMI supports a bigger loan.
Home loan interest rates in September 2026
Home loan interest rates have been fairly low this year. According to Paisabazaar data as of 16 September, reported by Business Standard and Zee Business, starting rates look like this:
| Lender | Starting rate |
|---|---|
| Bank of Maharashtra, Central Bank of India | 7.00% |
| Bank of India | 7.10% |
| Bank of Baroda | 7.20% |
| State Bank of India | 7.25% (range 7.25%–8.55%) |
| ICICI Bank | 7.55% |
| HDFC Bank | 7.75% |
| Axis Bank | 8.00% |
| LIC Housing Finance | 7.15% |
These are starting rates, reserved for borrowers with strong credit scores and stable jobs. Your actual rate could be 0.25 to 1 percentage point higher. Home loan interest rates could also move after the RBI’s policy on 7 October, since most home loans are now linked to the repo rate.
For the tables below, I’ve used 7.25%, which is SBI’s starting rate, and a quick check at 8% to show what a higher rate does.
Home loan eligibility by salary: the table
Assumptions: net monthly salary as shown, no other EMIs, and the interest rates above. These numbers are illustrative, so use them to set expectations before you speak to a bank.
| Net monthly salary | FOIR | Max EMI | Loan at 7.25%, 20 years | Loan at 7.25%, 30 years | Loan at 8%, 20 years |
|---|---|---|---|---|---|
| ₹30,000 | 40% | ₹12,000 | ₹15.2 lakh | ₹17.6 lakh | ₹14.3 lakh |
| ₹30,000 | 50% | ₹15,000 | ₹19.0 lakh | ₹22.0 lakh | ₹17.9 lakh |
| ₹50,000 | 40% | ₹20,000 | ₹25.3 lakh | ₹29.3 lakh | ₹23.9 lakh |
| ₹50,000 | 50% | ₹25,000 | ₹31.6 lakh | ₹36.6 lakh | ₹29.9 lakh |
| ₹1,00,000 | 40% | ₹40,000 | ₹50.6 lakh | ₹58.6 lakh | ₹47.8 lakh |
| ₹1,00,000 | 50% | ₹50,000 | ₹63.3 lakh | ₹73.3 lakh | ₹59.8 lakh |
A handy shortcut: at 7.25%, every ₹1 lakh of loan costs about ₹790 a month over 20 years, or about ₹682 over 30 years. Divide the EMI you can afford by that number and you have a quick estimate.
Home loan on ₹30,000 salary
Realistically, somewhere between ₹15 lakh and ₹22 lakh depending on the bank’s FOIR and the tenure. That’s enough for a small flat in many tier-2 and tier-3 cities, or a sizeable chunk of one in a metro suburb. Lenders are often stricter with FOIR at this income level, so expect the lower end unless you have a co-applicant.
Home loan on 50000 salary
This is the bracket Rahul is in. A home loan on 50000 salary works out to roughly ₹25 lakh to ₹37 lakh. With the bank at 50% FOIR and a 30-year tenure, he’s looking at about ₹36.6 lakh. For his ₹55 lakh flat, that’s not enough on its own, and we’ll see below what he can do about it.
If he has that ₹8,000 car loan EMI, his available EMI drops to ₹17,000 and his eligibility at 7.25% over 20 years falls to about ₹21.5 lakh. That’s a ₹10 lakh hit from one car loan, which is why paying off small loans before applying makes such a difference to a home loan on 50000 salary.
Home loan on ₹1 lakh salary
Here the numbers climb to ₹50 lakh to ₹73 lakh. At this income many banks will stretch FOIR above 50%, so the upper figure can be higher. The limiting factor often becomes the property’s value and the LTV cap rather than your income.
The down payment reality: RBI’s LTV limits
Even if your salary supports a big loan, banks can’t finance the full property price. Under RBI’s housing finance rules, the maximum loan-to-value ratio is 90% for loans up to ₹30 lakh, 80% for loans above ₹30 lakh up to ₹75 lakh, and 75% for loans above ₹75 lakh.
For Rahul’s ₹55 lakh flat, the loan would fall in the 80% band, so the bank can lend at most ₹44 lakh. He’d need at least ₹11 lakh as down payment. On top of that come stamp duty and registration, which banks generally don’t finance for properties of this size, and which run to around 6% to 7% in Maharashtra. So he needs roughly ₹14 lakh to ₹15 lakh of his own money. That’s the cash that catches first-time buyers out.
What else changes your home loan eligibility?
Credit score
A score of 750 and above usually gets you the advertised starting rate. Below 700, you may get a higher rate or a smaller loan, and below 650 many banks will say no. A 0.5% higher rate on a ₹30 lakh, 20-year loan adds about ₹917 a month to your EMI and about ₹2.2 lakh in total interest. Check yours first. Here’s how to check your CIBIL score for free, and some practical ways to improve a low CIBIL score.
Adding a co-applicant
This is the single biggest lever. If Rahul’s wife earns ₹40,000 a month and applies jointly, their combined ₹90,000 at 50% FOIR allows an EMI of ₹45,000. Over 30 years at 7.25%, that supports about ₹66 lakh. At that point the LTV cap of ₹44 lakh is what limits them. Both co-owners can also claim tax benefits on the loan, subject to the tax regime each picks.
Tenure and your age
Banks usually want the loan repaid by around age 60 for salaried borrowers, sometimes up to 70 at a few lenders. A 28-year-old can get 30 years. A 45-year-old might only get 15, which shrinks eligibility sharply. At 7.25%, a ₹25,000 EMI supports about ₹31.6 lakh over 20 years but only about ₹27.4 lakh over 15.
Existing EMIs and credit card dues
Every existing EMI comes straight out of your FOIR. That includes personal loans, car loans, consumer durable EMIs and even no-cost EMIs from festive sales. If you’re planning a home loan in the next six months, think twice before converting a big Big Billion Days purchase into EMIs. A personal loan taken now for the down payment is also counted against you, and many banks frown on it.
How banks read your income
Banks look at net take-home pay, not CTC. They generally ignore variable pay and one-off bonuses unless you can show a consistent history, and may count only part of allowances. If you’re unsure what your payslip actually shows, our guide on how to read a salary slip helps. Self-employed borrowers are judged on ITRs, usually an average of two or three years.
How to improve your home loan eligibility before applying
Close small loans first, especially ones with a few EMIs left. Clearing a ₹5,000 EMI can add roughly ₹6 lakh to ₹7 lakh to your eligibility at current rates. Add an earning co-applicant if you can. Choose a longer tenure to get the loan, and prepay later when your income grows. Keep credit card usage low for three to six months before applying. And put together a bigger down payment if possible, since that reduces both the loan you need and the interest you’ll pay.
Some public sector banks have been advertising processing fee waivers during the festive season. Offers change often, so ask your bank directly what’s available when you apply.
FAQ: home loan eligibility
How much home loan can I get on a ₹50,000 salary?
Roughly ₹25 lakh to ₹37 lakh at a 7.25% rate, depending on the bank’s FOIR and whether you pick 20 or 30 years. Existing EMIs reduce this.
What FOIR do banks use for home loans?
Usually 40% to 50% of net monthly income for salaried borrowers, sometimes higher for bigger incomes.
Does a co-applicant increase home loan eligibility?
Yes, substantially. The bank adds both incomes before applying FOIR, as long as the co-applicant is an earning family member.
Can I get a 100% home loan?
No. RBI caps the loan at 90%, 80% or 75% of the property value depending on the loan size, so you need a down payment.
Is CTC used to calculate home loan eligibility?
Depends on the bank, but most use net take-home pay and treat variable pay cautiously.
It helps to work out your number before you fall in love with a flat. Rahul, after running these figures, is now looking at a ₹45 lakh flat instead and applying jointly with his wife. It’s a smaller home than he’d hoped for, but the EMI won’t keep him up at night.
Disclaimer: Loan figures are illustrative calculations using September 2026 starting rates and typical FOIR ranges. Actual eligibility depends on each lender’s assessment of your income, credit history and property.
