How much home loan can I get on a ₹1.5 lakh monthly salary?

At a 55% FOIR and 8.5% interest over 20 years, a ₹1.5 lakh monthly salary (no existing EMIs) typically qualifies for about ₹95 lakh to ₹1 crore of home loan. At 80% LTV, that supports a property up to ~₹1.2-1.25 crore, with a ₹25 lakh down payment.

What is FOIR and how does it affect home loan eligibility?

FOIR (Fixed Obligations to Income Ratio) is the fraction of net monthly income a bank allows to be committed across all EMIs combined. Most Indian banks cap FOIR at 50-65% for retail home loans; higher for salaried prime borrowers, tighter for self-employed.

What is the current home loan interest rate in India (2026)?

Prime-borrower rates range from 8.35% to 8.75% across SBI, HDFC, ICICI, Axis, and LIC Housing Finance. Rates are benchmarked to the RBI repo (currently 6.50%) plus the bank's spread plus a CIBIL-based risk premium. Sub-720 CIBIL scores typically add 50-100 bps.

How much tax can I save on a home loan in India?

Under Section 24(b), up to ₹2 lakh of interest on a self-occupied home loan is deductible (old regime only). Under Section 80C, up to ₹1.5 lakh of principal repayment is deductible — but that ceiling is shared with PF, ELSS, and other 80C instruments. Section 80EEA (additional ₹1.5 lakh) sunsetted on 31 March 2022 and is not available for new loans.

Utility

Home Loan Affordability Calculator

Maximum home loan eligible on your income, property price it can buy, monthly EMI, total interest paid over the full tenure, and annual tax savings under Section 24(b) and 80C.

Income & obligations

Gross monthly income (₹)

₹1.50 L

Existing monthly EMIs (₹)

Car loan, personal loan, credit card minimums — anything already on your CIBIL.

Loan parameters

Interest rate8.5%

Prime-borrower range today: 8.35–8.75%

Tenure20 yrs

Loan-to-Value (LTV)80%

RBI cap: 90% up to ₹30L, 80% up to ₹75L, 75% above

FOIR (bank's EMI cap as % of net income)55%

Most banks allow 50–65%. Conservative is 50.

Personal

Age (years)

Loan typically has to end by age 60. We’ll auto-cap tenure if your age + requested tenure crosses that.

Your marginal tax slab

Used only to estimate Section 24(b) + 80C tax savings.

Max eligible home loan

₹95.07 L

at 8.50% over 20 years, EMI ₹82,500/month.

Max property price

₹1.19 Cr

At 80% LTV

Down payment needed

₹23.77 L

Your 20% contribution

Net income after EMIs

₹1.50 L

Gross − existing EMIs

Total interest over tenure

₹1.03 Cr

108% of principal

Tax savings (year 1, self-occupied)

Section 24(b) interest

₹40,000

Interest cap ₹2L × slab

Section 80C principal

₹30,000

Principal cap ₹1.5L × slab

Lifetime saving (approx)

₹14.00 L

20 yrs × annual

Estimate only. Tax savings depend on your full income picture and regime choice (new vs old). Section 80C is shared with PF, ELSS, LIC, stamp duty etc — if you’re already maxing it elsewhere, the principal saving may be zero.

Compare across lenders

Typical FOIR and published rate ranges across major Indian home-loan lenders. Your numbers below are computed with your own income, FOIR, tenure, and LTV — only the interest rate is swapped to the lender’s band.

Lender	Typical FOIR	Rate range	Loan @ best rate	Loan @ worst rate
SBI Largest public-sector lender; competitive rates for prime borrowers.	55–65%	8.40–9.15%	₹95.76 L	₹90.72 L
Bank of Baroda Public sector; women borrowers get 5 bps concession.	55–65%	8.40–9.15%	₹95.76 L	₹90.72 L
HDFC Bank Fast digital approvals; benchmark rates tied to Repo + spread.	50–65%	8.50–9.50%	₹95.07 L	₹88.51 L
LIC Housing Finance NBFC; slightly higher rates but flexible eligibility.	50–60%	8.50–9.75%	₹95.07 L	₹86.98 L
PNB Housing NBFC; serves Tier-2/3 cities well.	50–65%	8.50–10.50%	₹95.07 L	₹82.63 L
Kotak Mahindra Strong digital onboarding.	50–60%	8.70–9.60%	₹93.69 L	₹87.89 L
ICICI Bank Good for salaried at MNCs; balance transfer offers.	50–60%	8.75–9.65%	₹93.36 L	₹87.58 L
Axis Bank Competitive for self-employed with GST returns.	55–65%	8.75–9.70%	₹93.36 L	₹87.28 L

Indicative only. Actual rates depend on CIBIL score, property location/type, women-borrower concessions (5–10 bps at several public-sector banks), and balance-transfer/special-offer pricing. Always compare two or three banks before signing.

How this works

FOIR. Banks cap total EMIs (existing + new home loan) at a % of net monthly income. Default 55% — tighter for self-employed, more lenient for stable salaried.
LTV. RBI caps loan-to-value at 90% for loans up to ₹30L, 80% up to ₹75L, 75% above. Commercial property and plot loans get less.
Tenure. Capped so the loan ends by retirement age (default 60). Self-employed borrowers sometimes get this extended to 65-70 with health cover.
Tax benefits. Section 24(b) allows up to ₹2L interest deduction on a self-occupied property. Section 80C allows up to ₹1.5L principal repayment but shares its ceiling with PF, ELSS, LIC, stamp duty, etc.
Section 80EEA is historical. The extra ₹1.5L first-time-buyer deduction only applies to loans sanctioned before 31 March 2022. New loans in 2026 do not qualify.

Deep-dive: Home Loan Affordability in India — 2026 Guide

Indicative estimate only. Actual eligibility depends on credit score, employment stability, profile age, property type, and the specific bank’s underwriting. Speak to two or three lenders before deciding.

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