The Two Filters Behind Every Sanction Letter

Banks run your file through two independent tests and approve the lower outcome:

• FOIR (Fixed Obligation to Income Ratio): all your EMIs — existing plus the proposed one — divided by net monthly income. Most banks cap this at 40–55%; premium salaried profiles at large banks stretch to 60–65%.
• Multiplier method: a blunt ceiling on top — personal loans cap at 12–24× net monthly salary; home loans at roughly 60–72× gross monthly income (SBI publishes up to 72×).

The ₹10,000 EMI That Costs You ₹11 Lakh in Lost Eligibility

Every rupee of monthly EMI capacity converts into roughly ₹110 of loan amount at 8.5% over 20 years. So a ₹10,000 car EMI reduces your home loan eligibility by approximately ₹11 lakh. Closing small loans before applying restores meaningful headroom.

Five Levers That Genuinely Raise Eligibility

1. Add a working co-applicant — doubles income, adds 0.05% rate concession for women co-owners
2. Stretch the tenure — 15 → 25 years lifts eligibility ~20–25%
3. Close small EMIs first — per the ₹11-lakh arithmetic above
4. Cut credit-card utilisation under 30% — improves both FOIR math and score
5. Show all documented income — rent agreements, FD interest, second-job ITRs

Frequently Asked Questions