Home Loan

How much home loan can one’s take on a 50k salary


For many people, a dream is to buy a brand-new house. But buying a house can be expensive, and people on fixed incomes may not always be able to do it. In this case, you may choose a home loan if you meet the requirements. Piramal Financing House will determine if you can get a property loan based on how close your monthly income is to Rs 50,000.

Anyone who gets paid can be proud of buying a new house. It gives value but makes you feel like you’ve done something and belong. Even though getting a loan to buy a new house is easy, it’s important to know the eligibility requirements because the amount approved can change depending on the borrower’s qualifications. Most of the time, a salaried person can get a home loan based on age, number of years until retirement, employment status, and monthly income, among other things. Whether or not a borrower can get a mortgage depends on how much money they make every month. Anyone who wants to borrow more money can always ask for a joint application.

If you made Rs. 50,000 a month, how much of a loan could you get?

If you make Rs. 50,000 a month in India, you may wonder how much of a loan you can get. It’s important to consider the type of loan and your credit score when getting approved for a loan in India. Generally speaking, banks will often look at your income and credit history to determine what kind of loan you can receive. 

Individuals with an income of Rs. 50,000 per month and good credit could likely get a relatively large amount as a loan in India. Banks are willing to offer high amounts because the borrower would be seen as low-risk and able to pay back the money quickly.

Loans for homes can sometimes be as much as 60 times a salaried borrower’s net monthly income. If your monthly gross income is 50,000 and your net salary is 40,000 after tax and other deductions, you may qualify for a home loan of up to 24 lakh rupees (60 times Rs 40,000). Consider it in terms of EMIs you feel comfortable making payments on. It’s vital to keep this below 50% of your monthly profits.

Therefore, someone generating roughly Rs 50,000 per year would be comfortable paying a monthly payment of Rs 25,000. However, this is the best possible scenario. Numerous additional factors, such as the applicant’s age, employment, income status, fixed commitments, credit score, and property details, play a significant role in determining whether or not they are approved for a home loan. “required mortgage application forms.

Provide the following materials throughout the application process:

  • Paystubs from the last six months are stored in the KYC database.
  • Banking records
  • Photos the size of a passport with a white background, supporting paperwork for your Form 16 value, and any other sources of income are required.
  • Mortgage Application Requirements
  • Additional family members’ monthly incomes may be added to your own to reach the maximum allowable monthly salary.
  • Reducing your overall debt is the best way to improve your credit score.

If the loan amount is sizable, consider extending the repayment period so that your payments are spread out over a longer period. Mentioning additional income streams in your application might increase your rating and loan eligibility.

How do banks decide who gets a house loan and how much they may lend?

The criteria for getting a home loan might change from one lending institution to another. The loan amount an applicant is eligible for may be computed using the online home loan eligibility calculator. A few numbers, such as monthly income and total debt, are all needed to start. When deciding whether or not to provide a loan, a lender will look at a borrower’s personal history, income, and credit, among other factors.

Some of these variables are:

  • Borrowers’ age is the primary consideration when determining their suitability for a home loan. The typical limit imposed by banks and other lending institutions is the time it takes to retire. Accordingly, it may be difficult for retirees or those near retirement to get a loan with a longer duration unless they can demonstrate a stable revenue stream.
  • Lenders also look at borrowers’ credit scores to see how likely they are to make loan payments. Your CIBIL score is a three-digit number that summarizes your credit history. Since a poor credit score could result in higher interest rates or loan denial, it is suggested to investigate the minimum CIBIL score necessary for a home loan.
  • For instance, loan applications from salaried workers are evaluated based on factors such as the applicant’s income, job history, and stability. Self-employed borrowers have the same opportunity to get a loan as their salaried counterparts, provided they can provide proof of a stable revenue stream.
  • Mortgage companies consider numerous factors before approving a loan, including the age and location of your selected home. It’s the collateral for the loan you took out. The loan application will also be rejected if the tenure is longer than the years left on the property’s remaining term. Therefore, banks often conduct a technical and legal analysis of the property before loan approval.
  • The loan-to-value (LTV) ratio in mortgage financing indicates how much a borrower’s debt exceeds the property’s value. It’s a tool used by financial institutions in risk analysis to lower the frequency and magnitude of defaults. What a bank or other lending organization is prepared to lend toward a home’s purchasing price.
  • The ratio of Debt to Income Financial institutions and lenders see a borrower’s debt-to-income ratio as an indicator of that borrower’s debt-repayment capacity. It is a percentage dividing the net monthly debt payments by the net monthly income.


Commonly, all mortgage providers have the same conditions for qualification. However, certain financial institutions may be subject to additional guidelines and regulations. A successful home loan disbursement relies on the applicant reading and understanding the applicable criteria and qualifying circumstances before applying. To know more, consult with an expert from Piramal Financing House.