How Much Home Loan Can You Get in India? A Practical 2026 Guide
Last updated: June 2026
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A bank once told a colleague she could get a ₹60 lakh home loan on her ₹80,000 salary. Her neighbour, on the same salary, was offered ₹45 lakh by the same bank at a different branch. Same income, same lender, very different answers. The gap was not luck, it was the maths underneath, plus a credit score and a few existing EMIs. So let us pull that maths into the open and show you how home loan eligibility is actually decided, and how to nudge it in your favour.
How banks calculate your eligibility
The number behind almost every home loan decision is your FOIR, the Fixed Obligation to Income Ratio. It is the slice of your take-home income that a bank will allow to go towards all your loan EMIs put together, existing ones plus the new home loan. The higher you earn, the bigger the slice banks are comfortable with.
| Take-home salary | Typical maximum FOIR |
|---|---|
| Under ₹25,000 | 40% to 45% |
| ₹25,000 to ₹50,000 | 45% to 50% |
| ₹50,000 to ₹1,00,000 | 50% to 55% |
| Above ₹1,00,000 | 55% to 65% |
In plain terms: of your take-home pay, the bank allows this percentage for every loan EMI combined. If your FOIR ceiling is 50% and you already have a car loan, that car EMI is subtracted first, and only what is left can support the home loan.
Step-by-step eligibility calculation
Let us run a real example. Say your take-home salary is ₹80,000 and you already pay a ₹15,000 car loan EMI.
- FOIR at 50% of ₹80,000 = ₹40,000 available for all EMIs.
- Subtract the existing ₹15,000 car EMI.
- That leaves ₹25,000 a month for the home loan EMI.
Now convert that affordable EMI into a loan amount. At roughly 8.75% over 20 years, a ₹25,000 EMI supports a loan of about ₹28 lakh. Clear that car loan first and the full ₹40,000 is available, pushing eligibility to around ₹45 lakh. That single move, paying off an existing EMI, is often the biggest lever you have. Our loan eligibility calculator does this calculation for your exact figures.
How your credit score changes the picture
Your CIBIL score does two things: it decides whether you are approved, and it shapes the interest rate, which in turn changes how much you can borrow. Here is the rough map:
- 750 and above: best rates and maximum eligibility.
- 700 to 750: good rates, standard eligibility.
- 650 to 700: higher rates and a smaller sanctioned amount.
- Below 650: difficult, and often rejected.
Because a lower rate means a lower EMI for the same loan, a strong score quietly increases the loan you can afford. You can check your score free once a year on the official bureau sites, and it is worth doing six months before you apply so you have time to fix anything.
Income sources banks will consider
Eligibility is not just your basic salary. Banks can factor in several income streams, though they weight them differently:
- Salary after tax, the core figure for salaried applicants.
- Rental income, usually counted at around 50% to 70% of the actual rent.
- Business or professional income, backed by income tax returns.
- A co-applicant's income, such as a working spouse or parent.
Adding a co-applicant, a smart move
If your own salary does not stretch far enough, adding a co-applicant is often the cleanest fix. The bank combines both incomes, which lifts the EMI you can support and therefore the loan you qualify for. The benefits stack up nicely:
- Two incomes combine into a higher eligibility.
- Each co-applicant can claim their share of the tax benefits.
- The EMI burden is shared rather than resting on one person.
A couple earning ₹60,000 and ₹50,000 can usually borrow far more together than either could alone, which is why joint home loans are so common for first homes.
What your EMI will actually look like
Eligibility is one side of the coin. The other is what the monthly payment feels like in real life. At current rates of roughly 8.5% to 9.5% over 20 years, here is the ballpark:
- ₹20 lakh over 20 years: about ₹17,700 a month.
- ₹40 lakh over 20 years: about ₹35,400 a month.
- ₹60 lakh over 20 years: about ₹53,000 a month.
Those are approximate and move with the exact rate and tenure. For your precise EMI, run the figures through our mortgage and EMI calculator, and if you want to see how prepayments shorten the loan, the loan payoff calculator shows the interest you can save.
Home loan rates in 2026
Rates move with the RBI's repo-linked external benchmark policy and your own profile, but as a snapshot for 2026, most major lenders start somewhere around 8.75% for well-qualified borrowers, with the exact figure depending on your credit score, loan amount and whether you are salaried or self-employed. Always ask for the spread over the benchmark rate, since that is the part that stays with you for the life of the loan. Comparing two or three lenders before you commit can save a meaningful amount over twenty years.
How to improve your eligibility
If the number the bank offers falls short, you have more levers than you might think:
- Clear existing EMIs before applying, since each one eats into your FOIR.
- Add a co-applicant to combine incomes.
- Choose a longer tenure, which lowers the EMI and lifts eligibility, though you pay more interest overall.
- Improve your credit score in the months before applying.
- Declare all income sources, including rent and a spouse's salary.
The tax benefits worth knowing
A home loan is also one of the better tax shelters going, under the old regime. You can claim up to ₹1.5 lakh of principal repayment under Section 80C and up to ₹2 lakh of interest under Section 24(b), per the Income Tax Department each year on a self-occupied home. At a 30% slab those deductions can effectively shave a few thousand rupees a month off the real cost of your EMI. To see how this fits with the rest of your tax, use the salary and tax calculator, and note that these benefits apply only if you choose the old regime, as covered in our tax regime guide.
The short version: your home loan eligibility is mostly your FOIR, your existing EMIs and your credit score, and all three are things you can influence before you apply. Clear what you can, bring in a co-applicant if it helps, and check the real numbers first. Start with the loan eligibility calculator to find your ceiling, then the EMI calculator to see what the monthly payment feels like, all in your browser with nothing stored.
This is general information, not financial advice. Eligibility, rates and policies vary by lender and change over time. Confirm the figures with your bank before making any decision.
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Frequently asked questions
How much home loan can I get on a ₹50,000 salary?
As a rough guide, banks let you take a loan where the EMI is around 50% of your take-home pay, after existing EMIs. On ₹50,000 a month with no other loans, that allows an EMI of about ₹25,000, which at current rates over 20 years works out to roughly ₹28 lakh. Add a co-applicant, clear existing EMIs, or stretch the tenure and that number rises. The exact figure depends on your bank's FOIR policy, your credit score and the rate you are offered.
What is FOIR in home loan eligibility?
FOIR stands for Fixed Obligation to Income Ratio. It is the share of your take-home income that banks allow to go towards all your loan EMIs combined, existing and new. Most banks set FOIR somewhere between 40% and 65%, with higher earners allowed a bigger share. If your FOIR limit is 50% of a ₹80,000 salary, that is ₹40,000 for all EMIs, and any existing EMIs are subtracted before the home loan EMI is worked out.
What credit score do I need for a home loan?
A CIBIL score of 750 or above gets you the best rates and the highest eligibility. Between 700 and 750 you will usually still be approved at standard rates. Between 650 and 700 expect higher rates and a smaller sanctioned amount, and below 650 approval becomes difficult and may be rejected outright. Since the rate directly affects your EMI, a better score means both an easier approval and a larger affordable loan.
Does adding a co-applicant increase home loan eligibility?
Yes, and often significantly. When you add a co-applicant, such as a spouse or parent who earns, the bank can combine both incomes when calculating eligibility. That raises the EMI you can support and therefore the loan you qualify for. A working couple can often borrow far more together than either could alone, and both can claim the tax benefits on their share, which is an added bonus.
What income do banks count for home loan eligibility?
Banks primarily count your stable, documented income. For salaried applicants that is your take-home salary after tax. They may also include a portion of rental income, usually 50% to 70% of it, and business or professional income backed by income tax returns. Adding a co-applicant's income raises the total. Variable pay like bonuses and incentives may be counted partially or averaged, depending on the bank.