Planning to buy a house with a home loan? Many people are confused about how much loan they can get on their salary and what the EMI will be. We break it down for you.
Everyone dreams of owning their own house. Nowadays, people buy apartments by paying a down payment and taking a home loan for the rest. But many don't know how much loan they can get. After the RBI cut the repo rate by 1.25% last year, home loans have become cheaper. For example, SBI, India's biggest public bank, now offers home loans starting from just 7.25%.
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EMI tenure
You can choose your loan tenure—10, 15, or even 30 years. For a ₹50 lakh loan for 30 years at 7.25% interest, your monthly salary must be around ₹69,000. This is if you have no other existing loans. Your monthly EMI will come to about ₹34,500, which is nearly half your salary.
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Credit score
Banks always check your credit score before giving a loan. A score of 750 or more almost guarantees loan approval. Banks will also look at your past loan repayment history. A good score not only gets you the loan faster but also at a lower interest rate. So, before you apply, make sure your credit score is in good shape.
