🏦 Loans 7 min read·Updated 1 July 2026

How Much Loan Can You Get? A Complete Eligibility Guide

Lenders do not simply lend you what you ask for. They calculate a Fixed Obligation to Income Ratio (FOIR) and cap your EMI as a percentage of your income. Knowing the rules helps you plan.

What is FOIR?

FOIR is the share of your monthly income that can go toward all EMIs combined. Most Indian lenders cap it at 40–55% depending on income level and profile.

How the sanction is calculated

Step 1: Available EMI = (Monthly income × FOIR) − existing EMIs. Step 2: Convert that EMI into a principal at the offered rate and tenure using the EMI formula in reverse.

Factors that improve eligibility

Higher and stable income (2+ years in a job or 3+ years in business).
Credit score above 750.
Adding a co-applicant with income.
Longer tenure — but be mindful of retirement age caps (typically 60–70).
Fewer existing loans and lower credit-card utilisation.

Pro tips

Close old credit cards and small personal loans before applying — every ₹1,000 EMI you clear frees ~₹1.1 lakh of home-loan eligibility.
A working spouse as co-applicant can nearly double eligibility.

Common mistakes

Applying at multiple banks in one week — each hard enquiry dents the score.
Understating existing EMIs on the application — banks pull the credit report anyway.