How much can I borrow as a Home Loan depending on my credit score?

The loan amount you are offered predominantly depends on the property value, since lender’s can only fund a percentage of the property value as a Home Loan. individuals can avail of up to 75%–90% of the property value as finance. Your credit score, albeit an important factor, predominantly affects your interest rate and other lending terms.

How much can I borrow as a Home Loan depending on the LTV ratio?

Individuals can avail of up to 75%–90% of the property’s value through a Home Loan. For properties up to Rs. 30 lakh, the LTV ratio can be up to 90%. For properties valued between Rs.30 lakh to Rs.75 lakh, the LTV can be up to 80%. Lastly, for properties valued over Rs.75 lakh, the LTV can be up to 75% of the property value.

How much can I borrow as a Home Loan if my salary is Rs.60,000?

Assuming you do not have any monthly obligations, you can avail of a Home Loan worth Rs.44.8 Lakh as a Home Loan with a monthly take home salary of Rs.60,000. To check Home Loan eligibility as per your salary, use our Home Loan Eligibility Calculator. Note that this is a rough estimate; your Home Loan eligibility cannot be calculated solely on the basis of income.

How much can I borrow as a Home Loan if I earn Rs.10,000 more?

Assuming you do not have any monthly obligations, you can avail of: • A Home Loan worth Rs.44.8 Lakh as a Home Loan with a monthly take home salary of Rs.60,000 • A Home Loan worth Rs.52.3 Lakh as a Home Loan with a monthly take home salary of Rs.70,000 A higher monthly income allows for more room for EMI, effectively enhancing your eligibility. This is provided your obligations have not risen in tandem. Note that this is a rough estimate; your Home Loan eligibility cannot be calculated solely on the basis of income.

If I take a joint Home Loan, how much can I borrow?

Availing of a Home Loan with a co-applicant can help you enhance your eligibility. This is because with two or more applicants, the risk is reduced for the lender. More importantly, your profile also benefits from your co-applicant’s credit score, additional income, etc.

How much can I borrow as a Home Loan based on my other financial obligations?

The loan amount you are offered depends on your profile and the property in question. One of the factors that is considered in your profile is FOIR, i.e., Fixed Obligation to Income Ratio. This defines how much money you are left with to contribute towards the repayment of your Home Loan. Every lender has their own FOIR benchmark. Typically, you can be offered a Home Loan with a FOIR up to 75–80%.

How can I increase my Home Loan eligibility?

When applying for a Home Loan, ensure you include all your sources of income • Repay existing loans to showcase a higher repayment capacity • Check your CIBIL score and take steps to optimize it before applying • Apply with a co-applicant, especially one that has a CIBIL score of 750 or higher and a steady income source

How much must I pay as down payment for a Home Loan?

Lenders can finance up to 75%–90% of the property value as a Home Loan. Therefore, the remaining 10–25% must be borne by you.

How Much Home Loan Can I Get Based on My Salary?

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What is Home Loan Eligibility?

Home loan eligibility refers to predefined criteria that determine the Home Loan amount you can qualify for. These parameters include:

Nationality and Residential Status: The applicant must be an Indian citizen. For salaried applicants, Non-Resident Indians (NRIs) are also eligible, whereas self-employed applicants must be Indian residents.
Age and Work Experience:
- Salaried individuals: Should generally be between 23 and 67** years of age, with a minimum of 3 years of work experience in a private or public sector company, or a multinational corporation (MNC).
- Self-employed individuals: Should typically be between 25 and 70** years of age, with at least 3 years of business continuity in the current enterprise.
Creditworthiness: A healthy credit score (of 750 and above) is ideally preferred.

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit is subject to change, depending on the property profile.

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How to Calculate Home Loan Eligibility Based on Salary?

Before you start with the Home Loan process, it is important that you determine your total loan amount eligibility, which will largely be based on your repaying capacity. This capacity in turn would be based on your net monthly salary. Net monthly salary is the amount left with you after deductions such as income tax, professional tax and public provident fund (PPF). Salaried employees looking to apply for a housing loan need to have the required monthly income set by the lender to be eligible for a Home Loan.

Lenders do not take the entire in-hand salary into account when calculating the loan amount. Your in-hand salary may consist of several components, namely

Basic
Medical allowance
Leave travel allowance
HRA, and other allowances

It is worth noting that lenders only consider your basic salary when determining your loan eligibility. Allowances like medical and leave travel are provided for specific purposes and are therefore excluded by financial institutions.

For example, if your in-hand salary is Rs. 50,000 but after excluding medical allowance, LTA, and other such allowances, it comes down to Rs. 41,000, the loan amount you're eligible for will be calculated based on the latter amount.

Assuming you're a 30-year-old resident of Pune with no current EMIs or other financial obligations, the table below shows how much loan you can get for home based on your salary between Rs. 25,000 to Rs. 60,000.

Net monthly Salary	Home loan amount
Rs. 25,000	Rs. 12,91,895
Rs. 30,000	Rs. 15,50,274
Rs. 35,000	Rs. 18,08,653
Rs. 40,000	Rs. 20,67,033
Rs. 45,000	Rs. 23,25,412
Rs. 50,000	Rs. 25,83,791
Rs. 55,000	Rs. 33,15,865
Rs. 60,000	Rs. 36,17,307

*These amounts are calculated using the Home Loan Eligibility Calculator assuming the city to be Pune and age to be 30 years old.

Despite your regular income, other elements such as your ongoing EMIs and mandatory expenses can influence your ability to repay. Therefore, it's recommended to use a Housing Loan Eligibility Calculator to determine the amount of home loan you can obtain, as this tool takes into account factors such as your income, loan duration, additional monthly income, and existing financial responsibilities when calculating your eligible loan amount.

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Factors that Affect Your Home Loan Eligibility

Your Home Loan eligibility is determined by several financial and personal factors that help lenders assess your repayment capacity. Understanding these factors can help you estimate how much you may be able to borrow and identify areas where you can strengthen your eligibility.

Monthly Income

Your income is one of the primary factors considered during eligibility assessment. A higher and stable income generally indicates a stronger repayment capacity, which may improve the loan amount you qualify for. For self-employed applicants, business income and financial stability are also evaluated.

Existing Financial Obligations

Lenders review your ongoing financial commitments, including EMIs, credit card dues, and other recurring obligations. Lower existing liabilities can improve your repayment capacity and positively influence your eligibility.

Credit Score and Credit History

Your credit score reflects your repayment behaviour and overall credit management. A score of 750 or above is generally considered favourable for a Home Loan.

Age

The applicant's age can influence the available loan tenure. Younger borrowers may be eligible for longer repayment tenures, which can improve feasibility by reducing monthly EMI obligations.

Employment Type and Work Experience

Employment stability is an important consideration. Salaried applicants are typically assessed based on their employment history and work experience, while self-employed applicants may be evaluated based on business vintage and continuity of operations.

Fixed Obligation to Income Ratio (FOIR)

FOIR compares your monthly income with your fixed financial obligations, such as existing EMIs and recurring expenses. A lower FOIR indicates a higher ability to manage additional debt and may strengthen your Home Loan eligibility.

Property Value

The value and type of property being financed may also influence the final loan amount sanctioned. Lenders typically consider the property's market value while determining the eligible loan amount.

City of Residence

The city in which you reside and intend to purchase a property may also be considered during eligibility assessment, as property values and living costs can vary across locations.

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Calculate Your Home Loan Eligibility Online

You can calculate your Home Loan eligibility by following these steps:

Go to our Home Loan Eligibility Calculator.
Enter or select the city of residence.
Select your birth date.
Select your monthly income.
Enter your monthly obligations.

The calculator will display the approximate loan amount you can qualify for.

How to Increase Your Home Loan Eligibility

Before applying for a Home Loan, taking a few proactive measures can help improve your eligibility and strengthen your application. Consider the following:

Maintain a healthy credit score by making timely payments on loans and credit cards and keeping your credit utilisation at manageable levels. A score of 750 or above is generally viewed favourably by lenders.
Manage existing financial commitments by reducing outstanding loan balances and credit card dues, which can improve your repayment capacity.
Apply with a co-applicant, if appropriate, as combining incomes may enhance the overall loan eligibility, subject to the lender's assessment criteria.
Disclose all eligible sources of income, including rental income, incentives, commissions, or bonuses, as these may contribute to a stronger financial profile and support higher loan eligibility.

How to Apply for Home Loan Online?

Applying for a Home Loan can often get confusing for many. If you are wondering how to proceed, here is a step-by-step guide to apply for a Home Loan online.

Firstly, you will have to visit our Housing Loan application form and click on ‘New Loan’ if you are willing to apply for a fresh loan. If looking for a balance transfer, click on ‘Transfer Loan’.
Before filling up the form, consider checking the eligibility criteria, documents required, fees and charges if you haven’t already.
Carefully fill in your basic information such as name, contact number, DOB, net monthly income and total monthly obligations, and then click on ‘Continue’.
Then enter the generated OTP and complete the application process.

Once we have received your Home Loan application request, you can expect a call from our representative within 24 hours* of submission. He or she will guide you through the next application phases.

*Terms and conditions apply.

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Frequently Asked Questions:

Gross salary is your total earnings before deductions such as taxes, provident fund contributions, and other statutory deductions. Net salary is the amount you receive after these deductions are made. For Home Loan eligibility assessments, lenders generally consider your net salary.

It is generally advisable to optimise your eligibility before submitting a Home Loan application.

FOIR, or Fixed Obligation to Income Ratio, measures the proportion of your gross monthly income that is allocated towards fixed financial commitments, including existing EMIs and the proposed Home Loan EMI. A lower FOIR generally indicates stronger eligibility for a Home Loan.