In short
On a ₹75,000 in-hand salary with no other EMIs, a bank will usually allow about ₹37,500 of EMI, which at 8% over 20 years is a home loan of roughly ₹45 lakh. With ₹15 lakh of your own cash, that puts you in the ₹50–55 lakh home range — not the ₹80 lakh one. Two numbers decide it: the EMI your income can carry, and the cash you have for the part the bank will never fund.
How banks actually decide your loan amount
A home loan sanction is three tests, and the smallest one wins:
- Can you carry the EMI? The bank caps all your EMIs put together at a share of your in-hand income — the FOIR. Most lenders use 40–55%, higher for bigger salaries. Your existing car loan or credit-card EMI eats into the same limit.
- Is the property worth it? The bank's valuer decides the property value, then lends only up to the RBI LTV limit — 90% up to ₹30 lakh, 80% for ₹30–75 lakh, 75% above ₹75 lakh. If the valuer says ₹60 lakh and the builder says ₹70 lakh, the loan is on ₹60 lakh.
- Are you trustworthy? Credit score (750+ gets the best rate), job stability, and clean legal and technical clearance on the property.
The EMI formula the bank uses, worked backwards to find your loan:
Loan = EMI × [(1 + r)n − 1] ÷ [r × (1 + r)n]
where r is the monthly rate (annual ÷ 12 ÷ 100) and n is the number of months.
The mistake almost every first-time buyer makes
People budget for the down payment and forget the rest. On a ₹60 lakh home in a 6% stamp-duty state you are also paying, from your own pocket:
- Stamp duty — around ₹3.6 lakh
- Registration — around ₹60,000
- Brokerage, if any — up to 1%, so ₹60,000
- Legal, technical and loan processing fees — ₹25,000 to ₹60,000
- GST at 1% or 5% if the home is still under construction
That is ₹5–6 lakh on top of the ₹12 lakh down payment, and none of it can be borrowed. This calculator assumes 8% of the property price for these charges, which is why the home price it shows is lower than the number a broker will quote you. Run your exact state figure here.
Key numbers, September 2026
| RBI repo rate | 5.25% (unchanged since early 2026) |
|---|---|
| Home loan rates | About 7.1% – 8.5% for salaried borrowers with a good credit score; higher for self-employed and low scores |
| Typical FOIR | 40% – 55% of in-hand income |
| LTV cap (RBI) | 90% up to ₹30 lakh · 80% for ₹30–75 lakh · 75% above ₹75 lakh |
| Processing fee | 0.25% – 1% of the loan, often negotiable or waived in offers |
| Credit score for best rate | 750 and above |
| Max tenure | Usually 30 years, and must end by retirement age |
Rates and rules change. Confirm the current figure with the lender before you plan around it.
Frequently asked questions
How much home loan can I get on a ₹75,000 salary?
Most banks allow total EMIs of about 50% of your in-hand income. On ₹75,000 a month with no other loans, that is roughly ₹37,500 of EMI, which at 8% for 20 years supports a home loan of about ₹45 lakh. With an existing ₹10,000 car EMI it drops to about ₹33 lakh. Banks also check your credit score, job stability and the property's legal papers, so the sanctioned amount can be lower.
What is FOIR in a home loan?
FOIR (fixed obligation to income ratio) is the share of your monthly income a bank will let you spend on all EMIs put together. Most lenders use 40–55%. If your FOIR limit is 50% and you earn ₹1 lakh in hand, all your EMIs including the new home loan cannot cross ₹50,000.
How much down payment do I need for a home in India?
Banks fund a maximum of 90% of the property value for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. So you need at least 10–25% as down payment. On top of that, stamp duty, registration, GST on under-construction homes and brokerage are never funded by the loan, so plan for roughly 7–12% more from your own pocket.
Does a longer tenure get me a bigger loan?
Yes, because a longer tenure lowers the EMI, which raises the loan the bank will give for the same income. But it also raises total interest sharply. A ₹50 lakh loan at 8% costs about ₹50 lakh in interest over 20 years and about ₹82 lakh over 30 years. Take the longer tenure for eligibility if you must, then prepay.
Will a co-applicant increase my home loan eligibility?
Yes. If your spouse or parent earns and joins as a co-applicant, banks add their income to yours, which can nearly double the eligible loan. A woman co-owner also gets a lower stamp duty rate in several states and a slightly lower interest rate at some banks. The co-applicant is equally liable for repayment.
Last reviewed: September 2026 · This is an educational estimate, not a loan offer or sanction. Only a lender can tell you your eligibility. See Disclaimer.
