Home Loan on Rs. 85,000 Salary: Eligibility, EMI, and More

Buying a home is a dream for many, but how do you make that dream a reality? If you earn Rs. 85,000 per month, you may be wondering how much of a home loan you can afford and how the process works. The good news is, with the right planning and a clear understanding of the home loan process, you can qualify for a home loan that fits your budget.

In this article, we will discuss everything you need to know about securing a home loan on Rs. 85,000 salary, including eligibility criteria, EMI calculations, and practical tips to improve your chances of approval.

How much loan can you get on Rs. 85,000 salary?

The amount of home loan you can qualify for depends on several factors, with your salary being one of the key determinants. A salary of Rs. 85,000 per month puts you in a good position to apply for a home loan, but your eligibility will depend on:

1. Your debt-to-income ratio (DTI): This is the ratio of your existing debts (if any) compared to your monthly income. A lower DTI ratio increases your chances of loan approval.

2. Credit score: A credit score of 725 or above is considered excellent. A good score indicates that you are financially responsible and more likely to repay the loan on time.

3. Loan tenure: The tenure of the loan affects the EMI you will have to pay each month. Longer tenures result in lower EMIs but more interest paid over time.

4. Down payment: Lenders generally require a down payment of 10-20% of the property’s value. The larger your down payment, the lower your loan amount will be.

With a salary of Rs. 85,000, you can expect to qualify for a loan amount ranging from Rs. 40 lakh to Rs. 50 lakh, depending on these factors. Your eligibility can also be improved if you have no existing debts and maintain a good credit score.

EMI calculation for Rs. 85,000 salary

Now that we have an idea of how much you can borrow, let us look at how much your monthly EMI would be for a home loan. The EMI depends on the loan amount, interest rate, and tenure. Let us take an example to see how this works.

Let us assume the following:

• Loan amount: Rs. 50,00,000 (Rs. 50 lakh)
• Interest rate: 8.5% per annum
• Tenure: 20 years (240 months)

Using these numbers, your EMI will be calculated using the following formula:

EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]

Where:

• P is the loan amount (Rs. 50,00,000)
• r is the monthly interest rate (8.5% annual rate / 12 months)
• n is the number of months (20 years * 12 = 240 months)

Using this formula, your EMI will be around Rs. 43,391 per month.

Since this EMI is within the range of Rs. 51,000 to Rs. 59,000, it is a manageable amount for someone earning Rs. 85,000 per month. This allows you to comfortably repay the loan while leaving room for other expenses.

How to increase your chances of getting a home loan

To improve your chances of securing a home loan with a salary of Rs. 85,000, here are a few tips:

• Maintain a good credit score: Ensure your credit score is above 725. You can do this by paying off existing debts, using credit responsibly, and checking your credit report for errors.
• Reduce existing debt: Keep your debt-to-income ratio low by paying off personal loans, credit card balances, or other outstanding debts. This will show lenders that you can manage your finances well.
• Save for a larger down payment: The more you can pay upfront, the smaller the loan amount required, which means lower EMIs. Try to save for a 20% down payment to reduce your loan burden.
• Provide complete documentation: Ensure you have all the necessary documents in place, including proof of income, identity, address, and property documents. The more organised you are, the faster the approval process will be.

How Bajaj Housing Finance Home Loan can help

If you are looking for a home loan that offers competitive interest rates and flexible terms, Bajaj Housing Finance is a great option to consider. We offer home loans with fast processing, easy eligibility criteria, and flexible repayment options. Whether you are buying your first home or upgrading to a larger one, Bajaj Housing Finance Home Loan can help make your dream home a reality.

Here are some benefits of opting for a Bajaj Housing Finance Home Loan:

1. High loan amount: Secure funding up to Rs. 15 crore* to turn your dream home into reality.

2. Low interest rates: Enjoy interest rates starting 7.99%*  p.a., and EMIs as low as Rs. 722/lakh*.

3. Quick approval: Get approved within 48 Hours* of applying – sometimes even sooner.

4. Flexible repayment tenure: Choose a repayment term of up to 32 years for comfortable EMIs.

5. Simple application: Take advantage of doorstep document collection for a smooth process.

6. Balance transfer facility: Move your existing home loan and get a top-up loan with better terms.

Explore your options today and turn your property dreams into reality.