How much home loan are you eligible for on a ₹1 lakh per month salary?
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Calculate your home loan eligibility on a ₹1 lakh monthly take-home salary. Banks typically allow 50–55% of net income as EMI (Fixed Obligation to Income Ratio).
Why Home Loan Eligibility Math Matters
Banks typically approve home loans where the EMI doesn’t exceed 40-50% of your net monthly income. On a ₹1 lakh monthly take-home, that translates to a maximum EMI of ₹40,000-50,000 — which, at current 8.5% home loan rates over 20 years, supports a loan amount of about ₹46-58 lakh (about ₹63.4 lakh at the 55% FOIR used in the answer above).
Three factors push this number up or down. Existing EMIs reduce eligibility — a ₹15,000 car loan EMI shrinks your home loan ceiling proportionally. Co-applicant income (spouse, parent) can substantially raise eligibility, and may also unlock lower interest rates for women co-borrowers. Credit score above 750 typically gets the best rates; below 700 may face surcharges or rejection.
The property value matters too. Most banks fund up to 80-90% of the property value, so a ₹63.4 lakh loan needs a property worth at least ₹70-79 lakh. The remaining ₹7-16 lakh down payment plus 6-7% stamp duty + registration + brokerage takes the total upfront cash requirement to about ₹11-21 lakh — often the binding constraint, not the loan eligibility itself.