Know the maximum loan amount you are eligible for based on your income, existing obligations, and desired tenure.
Banks use a metric called **FOIR (Fixed Obligation to Income Ratio)** to determine your loan eligibility. Most banks allow up to 50% of your net monthly income to be used towards total EMIs (including existing loans).
If your monthly income is ₹75,000 and you already pay an EMI of ₹10,000, your available EMI capacity (at 50% FOIR) is ₹27,500. For a 20-year tenure at 9.5% interest, this translates to a ₹30 Lakh loan.
Yes, you can increase it by adding a co-applicant (spouse or family member) to combine incomes, closing existing small loans, or choosing a longer tenure.