House loans have made life much simpler and smoother still, some people may have second thoughts about applying for one, especially if their monthly income is under Rs 25,000 on average. Here we have the answer to your question, check out the article to know How much home loan can you can get with a salary of Rs 25,000.
Different banks and financial institutions have different parameters to decide how much home loan amount can be approved.
As per RBI guidelines, No bank can approve a 100% housing loan for any individual.
The calculations of the home loan amount usually depend upon the individual’s monthly salary.
As a general guideline, you can borrow up to 60 times the monthly income for a home.
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How Much Home Loan Can I Get on 25000 Salary?
This can be the first thought that crosses a salaried individual’s mind when considering buying a home. Although banks do consider your income when you apply for a mortgage.
However, there may be additional factors that can affect your chances of receiving a higher Home loan amount such as the age of the applicant, other financial commitments, CIBIL score, employment stability etc.
We created the table below to give you an estimate of the home mortgage you might anticipate with your salary:
| Monthly Salary | Loan Amount |
| Rs 25,000 | Rs 20,85,328 |
| Rs 30,000 | Rs 25,02,394 |
| Rs 35,000 | Rs 29,19,460 |
The housing loan amount can vary depending on age, Cibil Score, monthly income, and financial institution.
How To Check Home Loan Eligibility?
There are requirements that you must meet to qualify for a house loan.
These prerequisites are referred to as eligibility criteria. It’s crucial to meet the following requirements because failing to do so could lead to your mortgage application being denied.
Age limit of Applicant
Home loans are available to applicants between the ages of 23 to 62 for a salaried individual and 25 to 70 for a Self-employed individual, but typically speaking, financial institutions favour lending to the younger demographic.
The explanation is that young applicants have longer working lives and hence have a higher likelihood of repaying their mortgages.
One could obtain a home loan in the 50s for a less amount & a shorter term.
Credit score
Your history of loan payments, which is also represented by your credit score, is one of the crucial elements in establishing your eligibility.
Even if you make a very good living, a low credit score can make it more difficult for you to qualify for a mortgage.
Financial institutions often desire a credit rating of greater than 650.
You may have more leverage in negotiations for a reduced home loan rate of interest if your credit score is higher than 750.
Applicant’s Work Experience and Employer
Since they are seen as more secure, those who work for good companies are much more inclined to get approved for a mortgage. This increases the likelihood that EMIs will be paid on time.
If all other circumstances are equal, you can be qualified to receive a bigger sum if you work for a reputable company as opposed to someone who works for a less reputable company.
Similarly to this, your professional background speaks volumes about your steadiness and serves as a strong indicator of your loan application.
Legal And Technical approval of Property
The condition of the underlying value is crucial when it comes to mortgage loans.
Two key evaluation criteria are used by financial institutions to assess the property that the candidate is about to buy.
The first step is to check the property’s legal history to confirm that it has a clear title and owner, and the second is to estimate its market value.
Typically, professional lawyers & valuers authorized by that banking institute conduct both of these evaluations.
LTV( Loan To Value)
Financial institutions only finance up to 75% – 90% of the entire cost of the property, even if you qualify for a house loan based on your monthly net income at a higher level.
This is done to make sure they have adequate reserve money in case of default to sell the underlying asset and get their money back.
Existing Financial Commitments
Financial institutions determine a person’s eligibility for a home loan only after accounting for their current EMI responsibilities and any other loans, such as credit cards, personal loans, consumer durable loans, and vehicle loans, that they may have taken out in the past.
This is carried out to guarantee that the borrower of a house loan is not heavily indebted and can comfortably make EMI payments on time.
A person’s FOIR is the ratio of their total monthly obligations to their net income. Typically, qualifying requires a percentage of less than 50%.
You can calculate your EMIs using EMI Calculator.
Factors Affecting Home Loan Eligibility?
Many factors can be responsible for affecting home loan eligibility.
FOIR Fixed Obligation To Income Ratio
Individuals with low FOIR are more likely to receive favourable conditions on house loans from lenders.
A low FOIR rating denotes higher income, increasing the likelihood that the borrower will return the loan in full and on time.
CIBIL Score
Candidates who have an optimum CIBIL score of above 750 are much more likely to get approved for a house loan with reasonable terms that make payments easy.
Applicant’s Age
The length of loan payback is determined by the borrower’s age. Smaller EMIs associated with a longer payback tenor will make it simpler for borrowers to pay back the mortgage without defaulting.
Top Banks for Home Loans in India?
Here are the Top Banks for Home Loans in India with a lower rate of interest.
| Banks | Rate of Interest (P.A) |
| SBI Home Loans | 8.75% |
| HDFC Home Loans | 8.60% |
| Axis Home Loans | 8.65% |
| LIC Home Loans | 8.65% |
| IDBI Home Loans | 8.70% |
| BOB Home Loans | 8.20% |
| Union Bank of India | 8.20% |
| Indiabulls Home Loans | 8.70% |
| Kotak Home Loans | 8.49% |
| IIFL Home Loans | 8.20% |
| L&T Home Loans | 8.40% |
| Yes Bank Home Loans | 8.95% |
Which Documents Are Required For a Home Loan?
The following documents are required for a home loan application.
- ID Proof: PAN Card, Aadhar Card, Voter ID, Passport
- Age Proof: Applicant’s Birth Certificate, Aadhar card, 10th Marksheet, Passport
- Residential Proof: Ration Card, Bank Passbook, Passport, Utility bills
- Income Proof: Salary slip, last 6 months bank statements, form 16, Last 3 Years ITR
How can I Increase my Chances of Getting a Home Loan?
To boost loan eligibility, one must fulfil all conditions set forth by the lender.
This will make it possible for the applicant to get a house loan with favourable terms and conditions. You can boost your chances of getting a house loan by doing the following:
- Attempting to raise your credit score
- following a thorough evaluation, applying for a mortgage
- keeping your paperwork organised.
- Make use of all income streams.
- You can apply for a joint mortgage.
- Pick the best lender
FAQs
| How much loan can I get if my salary is 25000 per month?
You can obtain a loan for 6.75 lakhs for 5 years on an income of 25,000. According to the Fixed Obligation Income Ratio approach, you qualify for 5.89 lakhs if your monthly EMIs are 3,000 or less. |
| What is the EMI for a 25 lakhs home loan for 10 years?
With an 8.6% interest rate and 10 years tenure EMI for 25 Lakhs will be around Rs 31,130. |
| Can I get a house loan with a 15k salary?
If you are a salaried professional, you can get a housing loan up to 60 times your net salary. With a 15,000 monthly salary, you will get up to Rs 9,00,000 for home loans. |
| What is the minimum salary to take a home loan?
To apply for a home loan salaried individuals should have a minimum 10,000 monthly salary and be self-employed with 2 LPA. |
