How Much Home Loan Can You Get on an INR 1 Lakh Salary?

Ever dreamt of owning your own place? That feeling of security and stepping into a space that's truly yours is unmatched. But for many, especially young earners, the question of home loan affordability looms large.

If your monthly income is INR 1 lakh, you might wonder, "How much home loan can I get on my salary?"

While income is a crucial factor, lenders consider a holistic picture that includes your age, loan tenure, credit score, and financial stability when determining your eligibility. Here's a breakdown to help you navigate this exciting journey:

Understanding Home Loan Eligibility

• Income: A salary of INR 1 lakh puts you in a good position to buy a home. Lenders typically lend a maximum loan amount that is 60 to 70 times your net monthly salary. This translates to a potential loan amount of around INR 60- 70 lakhs for a home loan on an INR 1 lakh salary.
• Good Credit Score: A high credit score, ideally above 750, indicates responsible financial behavior and influences your interest rate and loan eligibility.
• Existing Debts: Existing EMIs like car loans or personal loans impact your affordability. Lower debt obligations mean a higher potential loan amount.
• Employment Type: Salaried individuals with stable employment history are generally considered less risky borrowers.
• Age : Lenders prefer an age group of 18 to 65 years

Also Read: Smart Tips to Boost Your Home Loan Eligibility

💡 Pro-tip: Use an online Home Loan Eligibility Calculator to know about your home loan eligbility

Let's Get Specific! Example: Home Loan on INR 40 lakhs salary

Imagine you earn a net monthly income of INR 40,000 and have a credit score of over 750. With minimal existing debt, you could potentially qualify for a home loan amount of around INR 24 lakhs (considering a 60x net salary rule).

Home Loan EMI Calculator: A Handy Tool

Use a free online home loan EMI calculator to estimate your monthly repayment amount based on the loan amount, home loan interest rate, and loan tenure. This helps you understand your affordability and plan your finances effectively.

Don't Forget the Home Loan Tax Benefits!

Owning a home comes with tax advantages. You can claim deductions for the interest paid on your home loan and repayment of the principal amount under Income Tax Act provisions. This can significantly reduce your tax outgo.

Also Read: New Tax Regime vs. Old Tax Regime: Know the Difference & Effect on Home Loan

Godrej Capital Home Loans

At Godrej Capital, we understand that buying a home is more than just a financial transaction. It's about fulfilling a lifelong dream. Here's how we can empower you:

• Competitive Rates: Low interest rates starting from 8.55% p.a. that can significantly reduce your interest burden .
• Higher Loan Amounts: We offer loans up to INR 20 crore, making your dream home a possibility.
• Flexible Repayment Options: Our innovative Design Your EMI (DEMI) feature allows you to customize your EMIs with interest-only payments for up to 12 months. The feature is applicable on ready-to-move-in properties. For under-construction properties, avail flexible repayment option for up to 48 months. This eases the financial burden during the initial years .

Also Read: Ready to Move into a New Home? A Home Loan with ‘Design your EMI’ Feature is All You Need

• Parallel Funding: For under-construction properties, we can help you split your down payment into manageable portions, making your dream home more attainable.

Ready to Take the First Step?

Applying for a home loan is a breeze with Godrej Capita. Our hassle-free process, with minimal documentation and quick approvals, makes your homeownership journey smoother.

Apply now or visit the website to know more.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially.
The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements.
Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com