Two separate limits decide your loan, and the smaller one wins. Your income sets a limit through the FOIR — most lenders cap all EMIs at 50–60% of net monthly income, a limit you can test against your own salary with the loan eligibility calculator. The property sets a second limit through the loan-to-value cap, which the RBI ties to ticket size: broadly 90% up to ₹30 lakh, 80% from ₹30–75 lakh, and 75% above that.
| Maximum LTV by ticket size | 90 / 80 / 75 % |
|---|---|
| What it means | ≤₹30L / ₹30–75L / >₹75L. Stamp duty is excluded from property value. |
as of 2026-08-15 · RBI Master Circular on Housing Finance · verified
What to know
The detail that catches most first-time buyers: stamp duty and registration are excluded from the property value used to compute LTV. On a ₹60 lakh flat in a state charging 6% stamp duty plus 1% registration, that is about ₹4.2 lakh you must fund yourself, on top of the 20% down payment. The stamp duty calculator gives the figure for your own state and ticket size. Budget the down payment as roughly 27–30% of the sticker price, not 20%.
FOIR is calculated on obligations, not lifestyle. Every running EMI counts, and so does the minimum due on your credit cards — which is why paying down a card balance before applying can raise your eligibility more than a salary increment would. A co-applicant with independent income raises the combined FOIR ceiling, but only if they are genuinely employed and their obligations are counted too.
Frequently asked questions
How much home loan can I get on a ₹1 lakh monthly salary?
As an order of magnitude, at a 50% FOIR and no existing EMIs, ₹50,000 of monthly EMI capacity supports roughly ₹60–70 lakh over 20 years at current rates. The LTV cap then applies separately against the property value. Run both through the EMI calculator rather than relying on a rule of thumb — existing obligations move the answer substantially.
Does a co-applicant increase home loan eligibility?
Yes, when the co-applicant has independent income — their income adds to the pool and their obligations subtract from it. Note the distinction that matters for tax: to claim the Section 24(b) and 80C deductions individually, each person must be both a co-owner of the property and a co-borrower on the loan. Being only one of the two gets you nothing — the deductions themselves are set out in home loan tax benefits.
What credit score do I need for a home loan?
Most lenders will consider applications from around 700, but the advertised floor rates are reserved for the top band, generally 750 and above. The gap between bands is typically 50–100 basis points, which on a large long-tenure loan is a very large number in rupees — compare what each lender advertises in home loan interest rates, and if you are below the top band, improving your credit score before you apply is the cheapest rate cut available to you.
Sources
- Reserve Bank of India — Master Circular — Housing Finance: loan-to-value ratios and risk weights (primary source)
- TransUnion CIBIL — Understanding your CIBIL score and report (primary source)
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