How much home loan can I get on my salary?
The loan amount you can avail depends on criteria like your credit score, salary, age, location, current obligations, etc. Lenders usually offer a home loan that is 60 times your salary.
However, lenders do not generally consider your in-hand salary when determining the loan amount. Your in-hand salary can include the following –
- Basic salary
- Medical allowance
- Leave travel allowance (LTA)
- House rent allowance (HRA)
- Other allowances, etc.
Now, a lender will not consider allowances like medical and leave travel when assessing your income. These allowances are provided for the respective expenses; hence, financial institutions exclude them.
Assume your medical allowance is Rs. 1500 and LTA is Rs. 3000. Hence, your salary will become Rs. 49,000 if you deduct these two from it. Now, the home loan amount you will be eligible for is Rs. 29.4 Lakh.
Following is a table illustrating the home loan eligible based on salary –
| Net Monthly income | Home Loan Amount |
|---|---|
| Rs.25,000 | Rs.18,64,338 |
| Rs.30,000 | Rs.22,37,206 |
| Rs.40,000 | Rs.29,82,941 |
| Rs.50,000 | Rs.37,28,676 |
| Rs.70,000 | Rs.52,20,146 |
High income will fetch you a higher home loan. However, existing loan EMIs and obligations can lower the actual loan-to-value. Hence, foreclosing any existing loan or paying off credit card debts is an ideal way to increase your home loan eligibility.
Also, you must improve your CIBIL score. A credit score of 750 or above makes you more eligible for the loan.
