Financial institutions consider your in-hand salary, excluding allowances like medical, travel etc., while approving Home Loans.
Financial institutions can grant you a home loan that is around 60 times your salary. The exact amount would depend on the interest rate and the tenure.
If your salary is ₹40,000 and you take a home loan at 8.5% p.a for 20 years, you will be eligible for a Home Loan worth ₹2,304,617.
Apart from your salary, financial institutions also consider the following factors while approving a Home Loan:
– Loan Tenure
– Age
– Credit Score
– Existing Financial Obligations
The easiest way to check your eligibility is by using a Home Loan eligibility calculator. It is a free online tool that will estimate the loan amount you’re eligible for and subsequent monthly EMI.
Just enter your net monthly income, loan tenure, interest rate and other existing EMIs. You can use the slider to check how eligibility will differ based on tenure.