FOIR: Fixed Obligations to Income Ratio — most banks cap total EMIs at 50-55% of net income. Lower obligations → higher eligibility.
Eligible EMI = (50% × income) − existing EMIs. Co-applicant income lifts the pool.
Loan amount = EMI × [{(1+r)ⁿ − 1} / {r × (1+r)ⁿ}], reversed from the EMI formula.
Banks also factor credit score (CIBIL > 750 preferred), age (≤ retirement at end of tenure) and property value (LTV 80-90%).
LTV tip: specified property value also caps the loan at 75-90% (LTV). If income supports more than the LTV amount, the bank funds the lower of the two.