The amount of home loan one can get is primarily determined by factors such as monthly income, existing financial liabilities (EMIs), credit score, loan tenure, and interest rate. Generally, lenders allow EMI payments up to a certain percentage of your income after accounting for existing obligations. For example, you can get a home loan amount that corresponds to around 60 times your net monthly income, adjusted for your liabilities and credit profile. To estimate your eligibility:
- Lenders often use a Fixed Obligation to Income Ratio (FOIR) where your total EMIs should not exceed 40-50% of your income.
- Your credit score impacts the interest rate and approval chances; a score of 700+ is typically preferred.
- Existing EMIs reduce the amount of income considered for a new home loan.
- Loan tenure (often up to 30 years) and interest rate also influence the EMI and loan amount.
- Having a co-applicant with income can significantly increase eligibility.
For example, a person with ₹75,000 monthly income and ₹10,000 existing EMI may qualify for about ₹50 lakh loan at around 8.5% interest over 20 years, while a couple earning ₹1,20,000 with ₹15,000 EMI can get roughly ₹80 lakh on a 25-year tenure at 8% interest.
If more precise information is desired based on specific income, credit score, and EMI, online home loan eligibility calculators from banks or financial services can provide instant estimates tailored to individual profiles.
