Home loan eligibility
Banks usually let your EMIs, the new one and any you already pay, take up to about half of your take-home pay. On ₹1 lakh a month with no other EMIs, at 8.5% over 20 years, that is a loan of about ₹57.62 lakh. This is an estimate; your bank decides.
- Loan you may get
- ₹57.62 lakh
- EMI you can carry
- ₹50,000 a month
How it is worked out
The EMI you can carry = monthly income × the share banks allow for all EMIs (50% here; you can change it) − the EMIs you already pay, never below zero. The loan is the amount that EMI repays at your rate and tenure: P = E × ((1 + r)ⁿ − 1) ÷ (r × (1 + r)ⁿ).
Banks also look at your age, credit score, job and the property itself, and lend at most 75% to 90% of the property's value. Stamp duty and registration are paid in cash on top.
Questions
- How much home loan can I get on my salary?
- About ₹57.62 lakh on ₹1 lakh a month take-home with no other EMIs, at 8.5% for 20 years, if banks let half your pay go to EMIs. Other EMIs reduce it rupee for rupee.
- What share of my income can go to EMIs?
- Banks commonly allow 40% to 60% of take-home pay for all EMIs together, higher for higher incomes. This calculator starts at 50%.
- Does a co-applicant raise my eligibility?
- Yes. A co-applicant's income is added, and so are their EMIs. Enter your combined figures.