How much home loan can I get on 1 lakh salary in India?

4 minutes, 8 seconds Read


Buying a home is a significant financial milestone for many individuals and families in India. However, it’s often a daunting task, primarily due to the high property prices prevalent in many cities across the country. One of the most crucial aspects of buying a home is securing a suitable home loan india. The amount of home loan you can get depends on various factors, with your monthly salary being a primary consideration. In this article, we will explore the question: “How much home loan can I get on a 1 lakh salary in India?”

Understanding Home Loans in India

Before delving into specifics, let’s have a basic understanding of how home loans work in India. Home loans are financial products offered by banks and financial institutions to individuals looking to purchase or construct a residential property. These loans typically have a long tenure, ranging from 15 to 30 years, and come with an interest rate that can be either fixed or floating.

The amount you can borrow as a home loan depends on several factors, including your income, creditworthiness, age, existing financial liabilities, and the property’s value. Lenders use these factors to assess your repayment capacity and determine the loan amount they are willing to approve.

Monthly Income: The Key Factor

Your monthly income, often referred to as your salary, plays a crucial role in determining the amount of home loan you can get. In this article, we will focus on individuals with a monthly salary of 1 lakh rupees. However, keep in mind that this amount can vary significantly from one city to another, given the difference in the cost of living.

Income Criteria for Home Loans

In India, lenders generally have specific income criteria that borrowers must meet to be eligible for a home loan. These criteria vary from one lender to another, but a monthly salary of 1 lakh rupees is generally considered a reasonable income to apply for a home loan.

However, it’s important to note that your take-home salary (after deductions such as Provident Fund, Professional Tax, and Income Tax) is a more critical factor than your gross salary. Lenders typically assess your repayment capacity based on your net income.

Loan Eligibility Calculation

To estimate the home loan amount you can get on a 1 lakh salary, you can use the following steps as a general guideline:

  1. Calculate Your Eligible Loan Amount:

Most lenders allow a loan eligibility of up to 50% to 60% of your net monthly income. So, on a 1 lakh monthly salary, your eligible loan amount could range from 50,000 to 60,000 rupees.

  1. Consider Other Financial Liabilities:

Lenders will also take into account your existing financial liabilities, such as personal loans, car loans, or credit card debt, when calculating your eligibility. The total EMI (Equated Monthly Installment) for all your loans should ideally not exceed 50% of your net income.

  1. Calculate the Loan Tenure:

The loan tenure can significantly impact your loan eligibility. Longer tenures result in smaller EMIs but may also lead to higher interest payments over the loan’s life. A common tenure for home loans is 20 to 30 years.

  1. Interest Rate:

The interest rate on your home loan will also affect the loan amount you can get. Lower interest rates generally result in a higher eligible loan amount.

Example Calculation

Let’s consider an example to illustrate how this calculation works:

Monthly Salary: 1,00,000 rupees (1 lakh)

Loan Eligibility Percentage: 50%

Existing EMI: None

Loan Tenure: 20 years

Interest Rate: 7.5% per annum


1.Loan Eligibility = 50% of 1,00,000 = 50,000 rupees

2.Existing EMI = None, so not a factor in this case.

3.Loan Tenure = 20 years

4.Interest Rate = 7.5% per annum

Using a home loan eligibility calculator, you can determine that on a 1 lakh salary, you may be eligible for a home loan of approximately 50 lakhs (50,00,000 rupees) with these parameters.

Additional Factors to Consider

While the above calculation provides a rough estimate, there are some additional factors to consider:

Credit Score:

A good credit score enhances your eligibility and can even help you negotiate a lower interest rate. Make sure your credit history is in good shape before applying for a home loan.

Property Value:

The cost of the property you intend to purchase also affects the loan amount you can get. Lenders typically finance up to 80% of the property’s value, and you may need to make a down payment for the rest.


Adding a co-applicant, like a spouse or parent, with a steady income can increase your combined eligibility for a higher loan amount.

Loan-to-Value Ratio:

The loan-to-value (LTV) ratio is the percentage of the property’s value that the lender is willing to finance. A lower LTV ratio may reduce your eligible loan amount.


Determining how much home loan you can get on a 1 lakh salary in India involves various factors, including your net income, existing financial commitments, loan tenure, interest rate, credit score, property value, and co-applicants. While a ballpark estimate can be calculated using the guidelines mentioned, it’s essential to consult with multiple lenders to understand your specific eligibility and choose another.



Similar Posts

In the vast digital landscape where online visibility is paramount, businesses and individuals are constantly seeking effective ways to enhance their presence. One such powerful tool in the realm of digital marketing is guest posting, and emerges as a high authority platform that offers a gateway to unparalleled exposure. In this article, we will delve into the key features and benefits of, exploring why it has become a go-to destination for those looking to amplify their online influence.

Understanding the Significance of Guest Posting:

Guest posting, or guest blogging, involves creating and publishing content on someone else's website to build relationships, exposure, authority, and links. It is a mutually beneficial arrangement where the guest author gains access to a new audience, and the host website acquires fresh, valuable content. In the ever-evolving landscape of SEO (Search Engine Optimization), guest posting remains a potent strategy for building backlinks and improving a website's search engine ranking. A High Authority Guest Posting Site:

  1. Quality Content and Niche Relevance: stands out for its commitment to quality content. The platform maintains stringent editorial standards, ensuring that only well-researched, informative, and engaging articles find their way to publication. This dedication to excellence extends to the relevance of content to various niches, catering to a diverse audience.

  2. SEO Benefits: As a high authority guest posting site, provides a valuable opportunity for individuals and businesses to enhance their SEO efforts. Backlinks from reputable websites are a crucial factor in search engine algorithms, and offers a platform to secure these valuable links, contributing to improved search engine rankings.

  3. Establishing Authority and Credibility: Being featured on provides more than just SEO benefits; it helps individuals and businesses establish themselves as authorities in their respective fields. The association with a high authority platform lends credibility to the guest author, fostering trust among the audience.

  4. Wide Reach and Targeted Audience: boasts a substantial readership, providing guest authors with access to a wide and diverse audience. Whether targeting a global market or a specific niche, the platform facilitates reaching the right audience, amplifying the impact of the content.

  5. Networking Opportunities: Guest posting is not just about creating content; it's also about building relationships. serves as a hub for connecting with other influencers, thought leaders, and businesses within various industries. This networking potential can lead to collaborations, partnerships, and further opportunities for growth.

  6. User-Friendly Platform: Navigating is a seamless experience. The platform's user-friendly interface ensures that both guest authors and readers can easily access and engage with the content. This accessibility contributes to a positive user experience, enhancing the overall appeal of the site.

  7. Transparent Guidelines and Submission Process: maintains transparency in its guidelines and submission process. This clarity is beneficial for potential guest authors, allowing them to understand the requirements and expectations before submitting their content. A straightforward submission process contributes to a smooth collaboration between the platform and guest contributors.