As a rule of thumb, the lenders restrict FOIR to 40-50% of the monthly income - since it is challenging to estimate the monthly expenses of a borrower, they consider it to be around 40%
Salary - 60% monthly expenses - current EMI’s is what is left for your home loan EMI.
The bank should get some margin here as well so that some amount is left for savings.
For example, if you earn ₹76,000 per month and you are serving a loan of ₹6,000 per month then the FOIR calculation would be
(60%* Monthly Income - Fixed Obligations) * 10,0000
(60% * 76,000 - 6,000) * 10,000
39.6 Lakhs eligibility for Home Loan
