Most banks provide home loans to borrowers with a minimum take-home salary of Rs. 1,20,000/- per annum restricting the age range between 18-65 years.
Thumb rule: The maximum allowed limit for the loan is 60 times your net monthly salary or 85? of the market value of the house.
The home loan eligibility calculators are based on:
• Fixed Obligation to Income Ratio (FOIR): Computed based on the EMI one can pay after deduction of EMI for running loans. The combined total of all EMIs shouldn’t exceed 45% to 50% of your monthly take home salary. Generally, banks don’t allow a FOIR going beyond 40-50% of the monthly take-home income.
•CIBIL score: Credit score higher than 750 is preferable.
•Job Stability: Most banks prefer a minimum employment period of 2 years including 1 year of employment with the current employer. In the case of self-employed, income tax returns should have been paid regularly.
The amount of loan depends on several parameters like interest rate, tenor, or property value.
If the EMI <= 45% to 50% of your monthly income, then you are eligible for the home loan otherwise this could be a challenge. Different lenders have varied home loan eligibility calculators though and it would be wise to discuss at length with the lender.
We at illis can help you regarding all your loan needs. Do contact us :