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How much home loan can I get on my salary?

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How much home loan can I get on my salary?

Lenders typically determine the amount of a home loan based on various factors, including your income, credit history, and debt-to-income ratio. While it’s a common belief that you can obtain a loan equal to 60 times your salary, this is not always the case.

In determining your loan amount, lenders do not typically consider your “in-hand” salary, which is the amount you receive after all deductions. Instead, they consider your gross salary, which includes your basic salary, as well as any additional allowances such as medical, leave travel, house rent, and other allowances.


However, financial institutions often exclude allowances like medical and leave travel when assessing an individual’s income for loan eligibility. This is because these allowances are designated for specific purposes and are not

considered as part of the borrower’s regular income.
It’s important to note that different lenders have different criteria for determining loan eligibility and amount, so it’s recommended to shop around and compare offers from multiple lenders to find the best option for your needs.

For assistance in finding the best loan option based on your salary, reach out to Refer Loan. Our team will be glad to assist you in finding the right solution for your needs


As an example, if your monthly gross salary is Rs 60,000 and after deducting various allowances, your net salary comes to Rs 48,000, you may be eligible for a home loan of up to approximately Rs 28.8 lakh (60 times the net salary). The key consideration when determining the loan amount is to keep your monthly loan payments, or EMIs, at a manageable level, typically no more than 50% of your monthly salary.

For example, a monthly EMI of Rs 24,000 would be suitable for someone earning a monthly salary of Rs 48,000. However, this is just a general guideline and other factors such as the applicant’s age, employment status, existing obligations, credit score, and property details can also impact loan eligibility.

In addition to your salary, other elements such as your existing EMIS and fixed commitments also affect your repayment capacity. To get an accurate idea of the home loan amount you are eligible for, it’s recommended to seek assistance from a professional as they consider elements like your income, loan term, other monthly income, and current financial obligations in estimating the eligible loan amount.

Assessing Home Loan Eligibility

When evaluating a home loan application, lenders take several important factors into consideration, including:

  • Age of the applicant: The age of the borrower is a crucial factor that lenders consider. Usually, borrowers must be at least 21 years old to apply for a home loan and the maximum age limit at the time of loan maturity is around 60-65 years.
  • Existing debt and loans: Lenders check the applicant’s outstanding debt and loan obligations to assess their ability to repay the home loan.
  • Employment and company type: The lender also considers the type of employment and company the applicant works for. They prefer stable and established companies.
  • Repayment history: A borrower’s track record of repaying previous loans and debts is an important consideration for lenders.
  • Lender relationship: Lenders also take into account any existing relationship the applicant has with the same lender.
  • Number of borrowers: The number of people applying for the home loan is also considered by lenders.
  • CIBIL Score: Banks and NBFCs use the credit history report prepared by CIBIL, which provides an overview of the applicant’s entire credit history, to assess their creditworthiness. A score above 700 is considered ideal for home loan applicants.
  • Loan-to-Value (LTV) Ratio: This ratio represents the loan amount sanctioned compared to the property’s actual value. Lenders generally provide loans amounting to 75-90% of the property value.

By considering these factors, lenders determine the applicant’s eligibility and ability to repay the home loan.

Before you apply for home loan:

Before starting your search for a new home, it’s wise to have an understanding of the home loan amount you could be eligible for based on your income. This will assist you in making a financially responsible decision about the property you want to purchase. Instead of using a home loan eligibility calculator, consider seeking assistance from Refer Loan Professionals. Our experienced counsellors can provide tailored advice and help determine your eligible loan amount.

With this information, you will be able to determine how much home loan you can get based on your salary, allowing you to confidently take the next step towards buying your dream home.

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