Check how much home loan, car loan or personal loan you can get on your salary
Banks in India calculate loan eligibility based on your monthly income, existing obligations, age, employment type and credit score. The most common method is the FOIR (Fixed Obligation to Income Ratio) method where banks allow EMI up to 40% to 50% of your net monthly income.
FOIR (Fixed Obligation to Income Ratio) = (Total EMIs including new loan / Net Monthly Income) x 100. Most banks set FOIR limit at 40% to 50%. So if your salary is Rs 50,000, maximum EMI allowed = Rs 20,000 to Rs 25,000. Based on this EMI, the maximum loan amount is calculated using the EMI formula.
How much home loan can I get on Rs 50,000 salary?
On a monthly salary of Rs 50,000, you can typically get a home loan of Rs 35 to 40 lakhs at 8.5% interest for 20 years. The exact amount depends on your existing EMIs, credit score, and the bank's policies. Use our calculator above for a precise estimate.
What is the minimum salary for a home loan in India?
Most banks require a minimum monthly income of Rs 25,000 to Rs 30,000 for a home loan. However, the loan amount you can get will be limited. PMAY (Pradhan Mantri Awas Yojana) schemes are available for lower income groups with subsidised interest rates.
How to increase home loan eligibility?
You can increase your loan eligibility by adding a co-applicant (spouse or parent), closing existing loans to reduce obligations, improving your credit score above 750, choosing a longer loan tenure, or showing additional income sources like rent or business income.
What is CIBIL score required for home loan?
Most banks require a minimum CIBIL score of 700 for home loan approval. A score of 750 or above gets you the best interest rates. Scores below 650 may result in loan rejection or very high interest rates.
More tools from Loan Calculators