If you are wondering ‘how much home loan can I get on my salary’, you must evaluate the home loan eligibility criteria. Home loans for salaried employees depend on many factors. Salary is one of the important parameters.
This article gives you all the details on home loan eligibility, documents required, interest rates, how is home loan eligibility calculated, how to apply for a home loan online and things to keep in mind. Read on!
Before approving a home loan application, lenders usually consider various factors such as salary, credit score, age, etc. Most lenders offer on average a loan amount that is 60 times a borrower’s salary.
However, an important point to keep in mind for borrowers wondering ‘how much home loan can I get on Rs. 40,000 salary’ is that lenders do not consider an applicant’s in-hand salary when determining the loan amount. They exclude medical and travel expenses when accessing one’s income.
For example, on Rs.20,000 salary, you can get a home loan of close to Rs.10 lakhs against a repayment tenure of 20 years.
Similarly, if you receive a higher paycheck each month and wonder ‘how much home loan can I get on Rs.50,000 salary, the answer would be an amount close to Rs.30 lakhs. You can use an online home loan eligibility calculator to check your loan eligibility.
For a clear understanding, you can refer to the table below:
|Monthly Income (in Rupees)||Home Loan Amount (in Rupees)|
Various banks and NBFCs provide home loans to eligible borrowers at a certain interest rate. Check the interest rates offered by top lenders before applying for a home loan:
|Lending Institutions||Interest Rates Starting From (per annum)||Processing Fees|
|Navi Home Loans||7.39% onwards||1%|
|Kotak Mahindra Bank||7.50 % onwards||0.5%|
|Axis Bank||7.60% onwards||1%|
|Yes Bank||8.95% onwards||1.5%|
|ICICI Bank||7.60% onwards||0.5% – 2%|
|HDFC Bank||7.55% onwards||0.50%|
|Bank of Baroda||7.45% onwards||0.50%|
|Bank of India||7.40% onwards||0.25%|
|LIC Housing Finance||7.50% onwards||Check with lender|
|Federal Bank||8.55% onwards||0.50%|
|Union Bank of India||7.40% onwards||0.50%|
|Reliance Home Finance||9.75% onwards||0.5% – 1%|
Rate of Interest (P.a)
Loan Tenure (Years)
Home loan eligibility criteria involve satisfying certain parameters. Here’s a list of eligibility requirements for getting a home loan approval for salaried employees.
Also read: Documents Required For Home Loans
The easiest way to determine eligibility for housing finance is through an eligibility calculator.
Potential borrowers need to visit the website of their preferred lender, navigate to the eligibility calculator, and enter the following details:
With an online loan eligibility calculator, you can enter the above-mentioned information and check how much loan amount you can borrow.
Borrowers can claim IT deductions on interest and principal repayments under Section 80C, 24(b), 80EE, and 80EEA of the Income Tax Act, 1961.
Since the lending institution conducts thorough checks on property documents, borrowers can stay assured of the veracity of the property. However, it’s still advised that you do a thorough check from your side as well. This eliminates the chances of scams.
Since home loans are secured loans, the interest rates are comparatively lower than unsecured loans, such as personal loans. For instance, interest rates for Navi Home Loans start at 7.39% p.a. Moreover, borrowers can also avail of a top-up loan on the existing home loan to curb cash crunches.
Home loans come with a longer repayment period that can go up to 30 years. Flexibility in repayment tenure lowers the financial burden on borrowers.
Borrowers can transfer the loan from one lender to another to enjoy lower interest rates, better terms of service, and such. Opting for a home loan balance transfer from Navi lets you enjoy reduced interest rates of up to 5%. Download the Navi app and check for yourself.
Some of the key factors affecting your eligibility are mentioned below:
Apart from the benefit of instant approval, Navi also provides a high-value loan amount at low-interest rates starting from 8.93% p.a.
If one applies for a home loan with an earning co-applicant, then the eligibility to avail of a higher loan amount improves significantly. Also, some lenders offer special rates for women borrowers.
If you have an existing loan, try to clear it before opting for housing finance. This is because lenders assess an individual’s repayment capacity by calculating their debt-to-income ratio.
Lending institutions prefer individuals who possess a CIBIL score of 750 or above. So, to increase home loan eligibility, you should strive toward improving your CIBIL score.
Additional income sources assure the lender about an individual’s repayment capacity. Hence, borrowers should always mention other sources of income to the lender, if any.
Availing of a home loan for salaried employees is a lot easier. Moreover, with the application and loan disbursal process going digital, applying for and getting a home loan for salaried employees has also become convenient. You can gauge how much home loan you will be eligible to borrow against your monthly income and calculate home loan repayment EMIs depending on the interest rate and tenure. If you are considering getting a home loan, download the Navi app and get a home loan today!
Ans: Moratorium denotes a specific period where borrowers do not have to repay any loan amount. In simple terms, this is the waiting period before the borrower starts paying the EMIs.
Ans: Home loan prepayment is a facility wherein borrowers fully or partially repay the loan amount before completion of the loan tenure. However, home loan prepayment is subject to various rules that a borrower must know beforehand.
Ans: Lenders calculate EMIs by considering the loan amount, tenure, and interest rate of the home loan. The EMI may change if the interest rate changes or if you make part-payment against your loan.
Ans: A home loan balance transfer is a facility provided to borrowers to transfer the current home loan balance to a new lender. This provides the borrowers with better deals and an affordable loan option.
Ans: The loan amount for 35000 salary will be decided by the lender depending on the interest rates, age, CIBIL score, etc. You can get between Rs. 1 lakh – 2 lakh loan on 35000 salary.
Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.74% p.a.
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
|Home Loan Interest Rate||Home Loan EMI Calculator||Home Loan Tax Benefits|
|Home Loan Prepayment Calculator||Minimum CIBIL Score For Home Loan||How to Apply for Home Loan|
|Home Loan Prepayment||NBFC Home Loans In India||Home Loan Stamp Duty|
|Home Loan Balance Transfer||Home Loan Types||Home Loan Process|
|NRI Home Loan||Home Loan Insurance||Benefits of Joint Home Loan|
|Documents Required For Home Loan||Top Banks And NBFCs for Home Loans||Home Loan For Women|
|Home Construction Loans||Home Loan Sanction Letter||Loan Against Property Interest Rates|
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