How much home loan can I get on my salary?
Home loan eligibility is primarily based on the borrower's income, credit score, job stability, age, and other financial liabilities. Lenders follow specific guidelines to determine the loan amount that a borrower can qualify for based on their income.
Generally, lenders consider the borrower's net monthly income while calculating their loan eligibility. The maximum loan amount that a borrower can get is determined by the lender's policy, which sets a maximum EMIs that the borrower can afford.
As a general rule, the EMI should not exceed 50% to 60% of the borrower's monthly income. For example, if someone has a monthly income of Rs. 50,000, the maximum EMI they can afford is around Rs. 25,000 to Rs. 30,000. Based on the prevailing interest rates and the loan tenure, the lender can calculate the maximum loan amount that the borrower is eligible for.
Apart from the borrower's income, lenders also consider their credit score while determining their home loan eligibility. A good credit score is essential to getting a high loan amount and a low-interest rate. Borrowers with a high credit score are considered to be more creditworthy and are more likely to get a higher loan amount.
Other factors that lenders consider while determining home loan eligibility include the borrower's age, job stability, existing loans and liabilities, and the property's value. Borrowers who are younger and have a stable job are considered to be more eligible for a higher loan amount.In conclusion, home loan eligibility in India is primarily based on the borrower's income, credit score, job stability, age, and other financial liabilities. Borrowers should carefully assess their eligibility and compare loan offers from various lenders before finalising their home loan to get the best deal.
It is important to note that the actual loan amount a person can get may vary based on several factors, and it is advisable to check with various lenders and compare the offers before finalising the loan. Additionally, borrowers should ensure that they can comfortably afford the EMI before taking on a home loan to avoid any financial strain in the future.
Nevertheless, apart from your income, factors like your current EMIs and fixed obligations also affect your repayment capacity. Hence, it is best to use a home loan eligibility calculator to check the home loan amount you are eligible for as this tool considers factors like your income, loan tenure, other monthly income, and current financial obligations while forecasting the eligible loan amount.
