"How much loan will I actually get?" is probably the single most common question we hear before someone even applies. The honest answer depends on more than just your salary — but salary is the starting point, and there's a fairly standard formula most banks use to work backward from your income to a maximum loan amount.
The Formula Lenders Actually Use: FOIR
Most banks calculate eligibility using something called FOIR — Fixed Obligation to Income Ratio. In simple terms, this is the percentage of your monthly income that can go toward all fixed EMIs combined, including the new loan you're applying for.
So if a lender caps FOIR at 50% and you earn ₹60,000 a month with no existing EMIs, they'd typically be comfortable with a new EMI of up to ₹30,000 per month — and from that EMI figure, they calculate the maximum loan amount based on tenure and interest rate.
A single existing EMI of ₹15,000 reduces a new loan's approvable EMI by exactly that amount.
Worked Examples by Income Level
| Monthly Salary | Max EMI (at 50% FOIR) | Approx. Loan Eligible* |
|---|---|---|
| ₹25,000 | ₹12,500 | ₹5 – 6 Lakhs |
| ₹50,000 | ₹25,000 | ₹10 – 12 Lakhs |
| ₹75,000 | ₹37,500 | ₹15 – 18 Lakhs |
| ₹1,00,000 | ₹50,000 | ₹20 – 24 Lakhs |
*Illustrative estimates assuming no existing EMIs, a 5-year tenure and a rate around 11-12% p.a. Actual eligibility varies significantly by lender, credit score, employer category, and city.
How Existing EMIs Cut Into Your Eligibility
📊 Example: The Impact of an Existing EMI
Notice how a single existing EMI of ₹15,000 reduces the new loan's approvable EMI by exactly that amount — this is why paying off or reducing smaller existing loans before applying can meaningfully increase what you're eligible for on a new one.
Other Factors That Change the Calculation
- Employer category — employees of large, well-rated companies or government bodies often get a slightly higher FOIR cap or better rate.
- CIBIL score — a strong score (750+) can push some lenders toward the higher end of their FOIR range; a weaker score pulls it down.
- City and cost of living — some lenders adjust FOIR caps slightly for metro vs non-metro applicants.
- Co-applicant income — adding an earning co-applicant (like a spouse) can increase combined eligibility significantly.
Want to See Your Own Numbers?
Rather than estimating manually, our free EMI calculator lets you plug in a loan amount and see the resulting EMI instantly — useful for working backward from your comfortable monthly payment to figure out how much to apply for.
Get Your Exact Eligibility, Not Just an Estimate
Take our free 5-question eligibility check and get a personalised estimate based on your actual income, employment type and existing obligations — no impact on your CIBIL score.
The Bottom Line
Your salary sets the ceiling, but your existing EMIs, credit score and the specific lender's FOIR policy determine exactly where you land within that ceiling. If you have existing loans, paying down even one before applying can noticeably increase what you're approved for. And since FOIR policies vary by lender, checking across multiple banks — rather than assuming your salary caps you at one number everywhere — is often the difference between a modest offer and a significantly better one.