Rs 50 Lakh Home Loan: What Salary Do You Need and How Much EMI Will You Pay?

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.

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Buying a house?

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.