Buying a home is the biggest financial decision most Indians make. But before you start property hunting, you need to know exactly how much loan you can get. Banks use a specific formula called FOIR to determine eligibility — here's how it works.
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that can go towards total EMI payments. Most Indian banks set FOIR at 40–50% of net monthly income. For example, if you earn ₹1,00,000 net per month, banks allow total EMIs of ₹40,000–₹50,000.
Home Loan Eligibility Formula
Maximum EMI = (Net Monthly Salary × FOIR%) − Existing EMIs
Maximum Loan = Maximum EMI × Loan Factor (based on rate and tenure)
Salary Required for Different Loan Amounts
| Loan Amount | Tenure | Rate | EMI | Min Salary Required |
|---|---|---|---|---|
| ₹30 Lakh | 20 years | 8.5% | ₹26,035 | ₹52,000/month |
| ₹50 Lakh | 25 years | 8.5% | ₹40,260 | ₹80,500/month |
| ₹75 Lakh | 25 years | 8.5% | ₹60,390 | ₹1,20,780/month |
| ₹1 Crore | 30 years | 8.5% | ₹76,891 | ₹1,53,782/month |
Tips to Maximize Eligibility
- Add co-applicant: Adding spouse's income can double eligibility
- Close existing loans: Lower EMI obligations improve FOIR ratio
- Choose longer tenure: 30-year tenure reduces EMI and increases eligibility
- Improve CIBIL score: Score above 750 gives best rates and higher eligibility
- Show rental income: Banks consider 70–80% of rental income as additional income
Use our Home Loan Eligibility Calculator to check your exact eligibility across SBI, HDFC, ICICI and 4 other banks simultaneously.