How loan eligibility is worked out
Lenders first decide the largest EMI you can afford: a share of your net monthly income (often 50%) minus EMIs you already pay. They then work out the loan that EMI can repay over the tenure at their interest rate.
Maximum EMI = income × EMI limit − existing EMIs
Maximum loan = the amount whose EMI at your rate and tenure equals the maximum EMI.
With a net income of ₹1,00,000 a month and no other loans, a 50% limit allows an EMI of ₹50,000. At 7.5% for 20 years, that supports a loan of about ₹62.07 lakh.
Questions people ask
How do banks decide how much I can borrow?
Mostly from your income and existing EMIs. Many lenders keep all your EMIs, including the new one, within 40% to 60% of your net monthly income (called FOIR). Your credit score, age, job stability and the property value also matter.
How does my credit score change the loan?
A higher score usually means a lower interest rate, and a lower rate means the same EMI supports a bigger loan. Below about 650, many banks may decline the application.
How can I borrow more?
Add a co-applicant with income, close small loans first, choose a longer tenure, or improve your credit score before applying.
Method
Maximum loan = maximum EMI ÷ EMI per ₹1 lakh at the rate and tenure (standard reducing-balance formula). Score bands add an illustrative 0%, 0.5%, 1.5% or 3% to the rate; actual pricing varies by lender. Educational estimate only; we don't check your credit.