On a ₹40,000 net monthly salary, you qualify for a home loan of roughly ₹22.6 lakh. That’s at standard bank assumptions: 50% FOIR cap, 8.75% per annum interest, 20-year tenure, and no existing EMIs. Already paying off a car loan or personal loan? That gets subtracted first.
The exact math for ₹40,000 salary
Banks cap total EMI burden at 50% of net monthly income, called FOIR (Fixed Obligations to Income Ratio). On ₹40,000, that’s ₹20,000 available for EMI. Reverse-calculate that EMI into a loan amount at 8.75% over 20 years and you land at ₹22.6 lakh.
Eligible EMI = ₹40,000 × 50% = ₹20,000
Loan amount at 8.75% / 20 yrs = ₹20,000 × 113.16 = ₹22,63,184
| Existing EMI | Eligible EMI left | Home loan eligibility |
|---|---|---|
| ₹0 | ₹20,000 | ₹22.6 lakh |
| ₹4,000 | ₹16,000 | ₹18.1 lakh |
| ₹7,000 | ₹13,000 | ₹14.7 lakh |
| ₹10,000 | ₹10,000 | ₹11.3 lakh |
A ₹7,000/month car EMI cuts your home loan eligibility by roughly ₹7.9 lakh. Worth clearing before you apply, if the timeline allows it.
How tenure changes the number
| Tenure | EMI per lakh | Loan eligibility on ₹20,000 EMI |
|---|---|---|
| 15 years | ₹999 | ₹20.0 lakh |
| 20 years | ₹884 | ₹22.6 lakh |
| 25 years | ₹822 | ₹24.3 lakh |
| 30 years | ₹787 | ₹25.4 lakh |
Stretching from 20 to 30 years adds close to ₹2.8 lakh of eligibility on the same EMI budget, though total interest paid rises.
Two ways to raise this number
Add a co-applicant. A working spouse earning ₹30,000 as co-borrower pools income for FOIR, taking combined eligible EMI from ₹20,000 to ₹35,000. That alone pushes eligibility from ₹22.6 lakh to roughly ₹39.6 lakh.
Extend the tenure. A 25-year tenure lowers the EMI per lakh, so the same ₹20,000 budget qualifies for a larger loan than a 20-year one, at the cost of more total interest over the life of the loan.
Check your own number
Enter your exact income, existing EMIs, and your bank’s rate and tenure into the Home Loan Eligibility Calculator above for a precise figure with a FOIR health indicator. For the full formula walkthrough and CIBIL/age/down-payment rules, see how much home loan you can get on your salary.
Frequently asked questions
How much home loan can I get on a ₹40,000 salary?
Around ₹22.6 lakh, assuming 50% FOIR, 8.75% interest, a 20-year tenure, and no existing EMIs. It drops proportionally with any existing loan EMI.
Is ₹40,000 salary enough for a home loan?
Yes, ₹40,000/month comfortably qualifies for a real home loan, roughly ₹22.6 lakh at standard terms, enough for a decent flat in a tier-2 city or an entry property in a bigger one, especially with a down payment.
What down payment do I need on a ₹22.6 lakh home loan?
For properties up to ₹30 lakh, banks typically finance up to 90% (LTV), so budget around 10% down, roughly ₹2.5 lakh on a ₹25 lakh property, plus stamp duty and registration separately.
Sources
- FOIR cap of 50% as used by SBI, HDFC, ICICI, Axis and Kotak for salaried home loan applicants
- Standard home loan reducing-balance EMI formula, RBI-regulated lending norms