Exact home loan eligibility for every salary level. illustrative lender-rate assumption. Calculate in seconds.
| Monthly salary | Illustrative loan range | Illustrative basis |
|---|---|---|
| ₹30,000 | ₹18–20 lakh | 20 years · 8.5% assumption |
| ₹40,000 | ₹24–27 lakh | 20 years · 8.5% assumption |
| ₹50,000 | ₹30–33 lakh | 20 years · 8.5% assumption |
| ₹75,000 | ₹45–50 lakh | 20 years · 8.5% assumption |
Banks use the FOIR (Fixed Obligation to Income Ratio) method. Most banks allow 40-50% of your net monthly income as total EMI obligations (existing EMIs + new home loan EMI). For a ₹50,000 salary with no existing loans: Maximum EMI = ₹50,000 × 50% = ₹25,000/month. At an illustrative 8.5% for 20 years, ₹25,000 EMI is about ₹30.4 lakh of loan capacity.
1. Add a co-applicant: If your spouse earns ₹30,000, combined income = ₹80,000 → eligible for ₹48-54 lakh. This is the single biggest eligibility booster.
2. Improve CIBIL score: CIBIL 750+ gets rates offered depend on lender and borrower profile. CIBIL below 700 may mean rejection or higher rates. Check free on PaisaBazaar, work on improving 3-6 months before applying.
3. Close existing loans: Every ₹5,000 existing EMI reduces your home loan by ~₹6 lakh. Clear car loans and personal loans before applying.
4. Longer tenure: 30-year loan vs 20-year: same salary supports 20% larger loan amount. Trade-off: more total interest paid.
5. Choose the right bank: A lower interest rate can reduce the scheduled EMI for the same principal and tenure, but actual eligibility depends on lender-specific policy and the borrower profile.
Rahul earns ₹50,000/month net salary. No existing loans. CIBIL score: 760. Wants to buy a ₹35 lakh flat.
Illustrative eligibility at an assumed 8.5% for 20 years: ₹30.4 lakh. Gap: ₹4.6 lakh. Solution: His wife earns ₹20,000/month. Combined ₹70,000 salary → eligible for ₹42.6 lakh. Rahul can now buy the ₹35 lakh flat comfortably with ₹7.6 lakh buffer. Monthly EMI: ₹28,900 (41% of combined income — well within 50% limit).