How Much Loan Can You Get on Your Salary?

By Pradipta Ray · Published 23 September 2026

Lenders do not start from the amount you want. They start from your income, cap what all your EMIs may add up to, subtract what you already pay, and lend whatever the remaining instalment can service.

The mechanism has a name: FOIR, the fixed obligations to income ratio. It is the share of your monthly income that a lender will allow all your EMIs to occupy together. Most sit between 40% and 60%, applying the lower end at lower incomes.

Estimate what your income could supportLoan Eligibility Calculator

The arithmetic, step by step

Take someone earning one lakh twenty thousand a month, already paying fifteen thousand in EMIs, looking at a twenty-year home loan at 8.5%, with a lender applying a 50% FOIR.

₹1,20,000 monthly income with ₹15,000 of existing EMIs, at 8.5% over 20 years and a 50% FOIR.
	Amount
Monthly income	₹1,20,000
EMI budget at 50% FOIR	₹60,000
Less existing EMIs	- ₹15,000
EMI available for a new loan	₹45,000
Loan that EMI supports	₹51,85,388

₹1,20,000 monthly income with ₹15,000 of existing EMIs, at 8.5% over 20 years and a 50% FOIR.

The final line is the eligibility figure. It follows directly from the EMI formula run backwards, which is covered in the EMI formula explained.

What moves the number most

Existing EMIs. Every rupee of existing instalment is a rupee off the budget, and it comes straight off the top. Clearing a small loan before applying can raise eligibility by far more than its balance.
Tenure. A longer tenure means the same instalment services a bigger loan. It also means much more interest - see what a longer tenure costs.
Rate. A lower rate means a smaller instalment per rupee borrowed, so eligibility rises.
Co-applicant income. Added to yours before the FOIR cap, which is why joint applications qualify for more. Their existing EMIs are added too.

What the calculation does not know

FOIR is an income test, and a sanction is more than that. Lenders also assess:

Credit history and score, which affect both approval and the rate offered.
Employment type and stability - salaried applicants at established employers are assessed differently from self-employed applicants.
Age, because the tenure normally has to end before retirement.
The asset, for secured loans. Home and vehicle loans are capped as a percentage of the property or on-road price, so eligibility can be limited by loan-to-value rather than income.

For a home loan, run both tests. Your income might support a larger loan than the property's loan-to-value cap allows, in which case the down payment is what constrains you, not your salary.

Take-home, not gross

Most lenders assess net monthly income after tax and statutory deductions. Using your CTC will produce an eligibility figure noticeably higher than anything you will be offered.

Eligible is not the same as advisable

A 50% FOIR means half your take-home going to EMIs before rent, food, school fees or savings. Lenders are assessing the probability that you repay, not whether the loan leaves you with a workable life.

Work out the instalment you are comfortable paying in a bad month, then borrow against that figure rather than the maximum on offer. The EMI Affordability Calculator approaches it from that direction.

Frequently asked questions

What is FOIR?

Fixed obligations to income ratio: the percentage of your monthly income that all loan EMIs together may occupy. Lenders commonly allow 40% to 60%, applying the lower end at lower incomes.

Is eligibility based on gross or take-home salary?

Most lenders use net take-home income after tax and statutory deductions. Enter your in-hand monthly salary for a realistic figure.

Does a co-applicant increase how much I can borrow?

Usually yes. A co-applicant's income is added to yours before the FOIR cap is applied. Their existing EMIs are added as well.

Why do I qualify for less than a calculator suggests?

A calculator tests income only. Lenders also weigh credit score, employment stability, age and, for secured loans, the loan-to-value cap on the asset.