How Much Home Loan Can I Get on My Salary? (2026 Calculator Guide)
Published 11 October 2026 · 7 min read · Clean EMI Editorial
The most common question before a home loan application is: "how much will the bank actually give me?" PSU banks do not use a single formula published on a website — they use a set of ratio checks on your verified income. Understanding those checks lets you estimate a realistic range before you even visit a branch.
Part of the Home Loan guide series.
The EMI-to-income cap (FOIR)
The Fixed Obligation to Income Ratio (FOIR) is the share of your net monthly income that goes toward EMIs. PSU banks typically want this ratio to stay within 40–50% after adding the new home loan EMI. So if your net salary is ₹60,000, the bank will try to keep your total monthly EMIs — existing plus the new one — under roughly ₹24,000 to ₹30,000.
If you already have a running car loan of ₹8,000/month, the bank would approve a new EMI of up to about ₹16,000–₹22,000, which at a 9% rate over 20 years corresponds to a loan of roughly ₹18–24 lakh. If you have no existing EMIs, you qualify for more.
Worked examples at common salary levels
These are illustrative estimates based on 40% FOIR, a 20-year tenure and an indicative 9% rate, with no existing EMIs. Actual eligibility depends on your bank and profile.
- ₹40,000 net salary: approx. ₹20–25 lakh
- ₹60,000 net salary: approx. ₹30–38 lakh
- ₹1,00,000 net salary: approx. ₹50–62 lakh
- ₹1,50,000 net salary: approx. ₹75–93 lakh
- ₹2,00,000 net salary: approx. ₹1–1.2 crore
Using 50% FOIR or a longer tenure raises the amount; having existing EMIs reduces it.
Income type and its effect
Banks use net take-home salary, not gross CTC, as the base. Variable pay — performance bonuses, commission — is often given partial weight (typically 50–75%) or excluded. Rental income and professional income may be added if you can document them consistently with ITRs and bank statements.
For a co-applicant, banks add both incomes and compute FOIR on the combined figure, which is the most reliable way to qualify for a higher loan without gaming other ratios.
What actually limits the amount more than income
- Property value: Banks lend up to 75–90% of the property's current market value (their own appraisal, not the agreement price). The LTV ceiling can cap your loan below what your income would allow.
- CIBIL score: Below 700, the file does not proceed. Between 700 and 750, the bank may sanction less than the calculated maximum.
- Age: The bank structures the tenure so the loan closes before you turn 65–70. A 55-year-old can only get a 10–15 year tenure, which implies a higher EMI for the same amount — reducing the qualifying loan size at any given income.
Use the eligibility calculator on the Home Loan page for a personalised figure, then see what Union Bank of India offers.
Frequently Asked Questions
Is gross salary or net salary used for home loan eligibility?
Net take-home salary (actual credit in bank account) is used. Banks verify this against 3 months of salary slips and bank statements.
Can I add my spouse's income to get a bigger home loan?
Yes. A co-applicant's income is added when they are also a co-borrower on the loan. Both applicants' CIBIL scores are checked.
What if my salary slips show a different amount to what I earn?
Banks use what is on your official salary slips and bank statements. Undeclared income cannot be used for the calculation.
Does a higher down payment increase my eligible loan amount?
A down payment reduces the loan amount you need, but it does not increase the maximum the bank is willing to sanction — that is still capped by income and FOIR.
Useful free tools
- Free Credit Analyzer — Upload your CIBIL report and see which loans you may be eligible for, with an indicative EMI.
- Check my Loan Eligibility — Answer a few questions and see how your application would be routed to a PSU bank.
- Home Loan Balance Transfer Calculator — Compare your current EMI with a lower-rate loan over the same remaining tenure.
- Credit Score Enhancer — Practical steps to improve your CIBIL score before you apply for a loan.
Ready to check your eligibility?
No fee to apply. CIBIL score of 700 or above required.