Question 1

What is FOIR and how does it affect loan eligibility?

Accepted Answer

FOIR (Fixed Obligation to Income Ratio) is the percentage of your net monthly income that goes toward loan EMIs. Most banks cap total EMIs at 40–50% of net take-home. If you earn ₹80,000/month, your maximum total EMI allowed is ₹32,000–₹40,000. Subtract existing EMIs and the remainder is your headroom for a new loan.

Question 2

How much home loan can I get on ₹60,000 salary?

Accepted Answer

On a ₹60,000 net monthly salary with no existing EMIs and a 40% FOIR, your maximum EMI is ₹24,000/month. At 8.5% for 20 years, that translates to approximately ₹27.6L in home loan eligibility. Improve eligibility by adding a co-applicant (spouse income counted), or negotiating a higher FOIR with some banks for salaried borrowers.

Question 3

Does CIBIL score affect loan eligibility amount?

Accepted Answer

CIBIL score primarily affects the interest rate offered, not the maximum loan amount directly. However, a score below 700 may lead to rejection, and a score above 750 gets you the best rate — which increases eligibility since the same EMI can service a larger loan at a lower rate.

Loan Eligibility Calculator