EMI Calculator

Once you have an EMI figure above, do one more calculation. Add it to every other EMI you already pay — car loan, existing home loan, the minimum due on your credit cards — and divide the total by your net monthly take-home. That percentage is your FOIR, the fixed obligation to income ratio, and it is what a credit team looks at.

Most lenders cap FOIR at 50–55%. Some stretch to 60–65% above roughly ₹1 lakh monthly income. Above that, the file gets declined or the sanctioned amount comes back smaller than you asked for.

Work an example. Someone earning ₹1.2 lakh a month with a ₹35,000 car EMI and a ₹15,000 credit card minimum is already at about 42% before adding anything new. The room left for a home loan EMI is far smaller than the salary alone suggests — which is why strong-looking applicants get declined and are told it was their “credit profile”.

If your number lands above 50%, the two things that actually move it are clearing an existing obligation or reducing the loan amount. Extending the tenure lowers the EMI too, but costs considerably more in total interest.