How Much Home Loan Will I Get?

By Sanesh Mathew | November 9, 2017

Are you planning to buy a property but do not have any idea about how much loan amount you’re eligible for? Let us help.

How Much Home Loan Will I Get?

Here’s a question that we recently came across. The person wanted to buy a house and was wondering how much loan he is eligible for and how much should he actually borrow.

Q: I am a Mechanical Engineer. I work for a multinational company as Manager-Sales. My cost-to-company including all benefits is Rs. 6 lakh per annum and my monthly take home is approximately Rs. 30,000. I plan to buy a builder floor in Delhi NCR which costs Rs. 32 lakh (Rs. 30 lakh for the home and Rs. 2 lakh for registration). How much loan will I get and how much should I take? Pushpam Kumar

‘How much Home Loan will I get?’ – This is the question that people often ask when they are looking to buy a house and need a loan to fund it. Well, there is no specific amount that we can mention since the amount you’ll be eligible for is based on various factors such as your job profile, income, credit history, Credit Score, age, etc. Let’s learn a little more, shall we?

(Before moving ahead, we’ve assumed Pushpam to be a 30-year old man with 5 years of work experience and no previous loans/debts.)

Loan Eligibility

Well, as mentioned earlier, your loan eligibility depends on a variety of factors.

In the case of Pushpam, the maximum Home Loan amount he can get is up to Rs. 24 lakhs for a tenure of 30 years which is the maximum tenure offered by banks. The EMI for this amount would be between Rs. 13,000 and Rs. 15,000 per month at an interest rate of between 8.35% and 9.95%. Pushpam will have to arrange the down payment of Rs. 8 lakhs.

If you have a property at hand and would like to know how much loan you can get, check your eligibility here. It will just take a couple of minutes to get quotes from different banks and NBFCs.

Additional reading: Home Loan Handbook: All Questions Answered

Consider A Joint Home Loan

In case the Rs. 8 lakh down payment is too much for Pushpam, then he can consider taking a joint Home Loan, where you can combine a family member’s income to be eligible for a higher loan amount that would suit your fund requirements for the purchase.

The co-applicant can be your father, mother, spouse or children. The ownership of the property can be divided equally or it can be solely yours.

Let’s now assume that Pushpam applies for a loan with his spouse. His spouse is 28 years old, working for an MNC and earning Rs. 25,000 in a month. With his spouse as co-applicant, Pushpam can get a maximum loan of up to Rs. 29 lakhs. That means his down payment will reduce to just Rs. 3 lakh. So, if you’re aiming for a higher loan amount, then applying with a co-applicant makes sense.

Additional Reading: Increase Your Tax Savings With A Joint Home Loan

Credit Profile

Although Pushpam is eligible for Rs. 24 lakhs with his profile, his credit history or previous track record for loan/Credit Card repayment can affect his loan eligibility. If his existing loans are in the process of being repaid, there are chances he can get the maximum loan amount. At such instances, a joint loan will really help you out to increase the amount of loan you can avail.

On the other hand, if your repayment history is impeccable and you have no liabilities you may be eligible for a higher loan amount and a lower interest rate as well!

Bank’s Funding

Also remember, banks generally fund 80% to 85% of the cost of the property. For smaller loan amounts (less than 20 lakhs), a few banks provide up to 90% funding too. However, it is essential to have at least 20% of the cost of the property as down payment always.

And Finally…

As mentioned throughout, there are quite a few factors that banks take into consideration when it comes to Home Loan eligibility of individuals. Always keep in mind that the final loan amount will be the bank’s decision solely.

And if you’re wondering about how much you should borrow, it depends on how much money you have at your disposal. If you don’t have much to make a huge down payment, you can always apply with a family member and increase the total loan amount.

Additional Reading: 5 Unbelievably Simple Hacks For A Quick Home Loan Approval

Psst! If you’re looking for a Home Loan, you have come to the right place.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Home Loans
Sanesh Mathew

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

19 thoughts on “How Much Home Loan Will I Get?

  1. AvatarDeena Reshma D'

    Hello,
    I am a Secretary. I work for a food and beveage company its a mutlinational company. I have my salary is 3,500 Dhs.

    I have purchased a house in india i need some loan how much loan i will get from the bank what details i have to give them when i apply for home loan.

    with regards,
    Deena Reshma D'souza

    Reply
        1. AvatarTeam BankBazaar

          Hi ravinder dwivedi,

          Appreciate your feedback. Have a nice day!

          Cheers,
          Team BankBazaar

          Reply
  2. AvatarKevin

    Hi,

    I have my parental house which I want to renovate, I am looking for loan of 5 lac. can I get the loan on parental property ? I earn 15000 Rs. a month

    Reply
  3. Avatarjeetu

    hi
    i am jitu i live in navi mumbai in nerul i wht to buy a flat . My salary is only 10000/- per month i have see a flat in airoli .I am looking for loan of 8 lacs rs i can pay per months loan up to 3.5 to 4 thousand not above that.
    pls can you help me
    rgds
    jitu

    Reply
  4. AvatarAnonymous

    I am an Electrical engineer getting around Rs,35,000 as gross and net home taken is Rs.30,000 how much I can avail for house purchase from SBI. Earlier I have taken no loans.

    Reply
  5. AvatarSrinivas

    Hello sir,

    I am working in private organisation. My salary Rs. 5.80 PA. and my take home salary net 35000 pm. I want to purchase a ready made house at hyderabad. I want to know how much i will get the loan.
    rgds,

    vv s kumar

    Reply
  6. AvatarKrishna reddy

    My present income is Rs. 20000/- per month. I'am having one open plot 150 yards in hyderabad.

    How much Home Loan can i get ????

    Reply
  7. AvatarIbrahim Zain

    I am an NRI woring in UAE. If I want to purchase a property for setting up a reataurant business in India which type of loan should I go for and what is the procedure. Also I want to purchase a car in India through a loan. My salary is 6500 AED, how much loan can I take?

    Reply
  8. Avatarsushil

    i m govt employee. my salary is around 10,500 per month
    how much loan can i get from bank

    Reply
  9. AvatarSRS

    Hi,

    We have finalized a flat which cost of 29 lacs. Me & my spouse both are eligible for the max loan amount. But as per the bank policy we don't have enough money for the down payment. Please help in this matter. What is the best possible way to solve this problem.

    Reply
  10. AvatarMojibur

    I took a loan of 2000000 and the EMI is 17800. Should I deposit 30000 per month . Please reply.

    Reply
    1. AvatarTeam BankBazaar

      Hi Mojibur,

      Prepaying your loan will definitely help lower the total amount of interest paid. However, you should check with your back to find out if there will be any prepayment charges.

      Cheers,
      Team BankBazaar

      Reply
  11. AvatarRajanChauhan

    Great Article!

    I would urge every customer to go online & use loan eligibility calculator. It is available on websites of all respective lenders. Do not blindly believe what bank sales executive commits, as he is more interested in bringing a client to the bank.

    Reply
  12. AvatarSwati

    I am earning 21,000 in hand Can anybody advice me that how much amount of home loan I will be getting what is the tenure of EMI along with rate of interest .it will be helpful for me to understand as it’s my first home loan that I’m planning to take so for my parents.

    Reply
    1. AvatarTeam BankBazaar

      Hi Swati, Kindly check your eligibility for a Home Loan here. Cheers, Team BankBazaar

      Reply

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