Guides / Home Loan Eligibility: How Banks Decide How Much You Get
Home Loan Eligibility: How Banks Decide How Much You Get
1 Oct 2026Banks decide your loan amount mainly from your income, your existing debts and the value of the property.
1. Income and FOIR
Lenders limit how much of your income can go to EMIs. This is called FOIR, often around 40% to 60%.
Example: monthly income ₹1 lakh, rate 8.5%, tenure 20 years.
| Situation | Affordable EMI | Eligible loan |
|---|---|---|
| FOIR 50%, no other loans | ₹50,000 | ₹57.6 lakh |
| FOIR 50%, existing EMI ₹15,000 | ₹35,000 | ₹40.3 lakh |
| FOIR 40%, no other loans | ₹40,000 | ₹46.1 lakh |
An existing loan cut the eligible amount by about ₹17 lakh. Check your numbers in the Loan Eligibility Calculator.
2. Credit score
A higher score, commonly 750 or above, can help you get approval and a better rate.
3. Property value
RBI rules limit how much of the property value a bank can lend, usually between 75% and 90% depending on the loan size. You pay the rest as a down payment.
4. Other factors
Age, job stability, years left in service and co-applicants (such as a working spouse) all matter.
How to improve eligibility
- Close small loans and credit card dues.
- Add an earning co-applicant.
- Choose a longer tenure, with care.
- Avoid applying to many lenders at once.