If your salary is ₹60,000 and you are planning to apply for a home loan, you might want to know how much home loan you can get on ₹60,000 salary. Home loan is a long term commitment on the part of the borrower and has a heavy financial burden attached to it. The borrower should analyse the how much loan he can afford to take without making the repayment process difficult.
Keep reading to know all about home loan on ₹60,000 salary.
How do Lenders Decide on Home Loan Amount For 60000 Salary?
Like any other loan, the principal amount for a home loan for ₹60,000 salary also depends not only on the salary but also on the other factors.
These factors include the borrower’s:
- Age: Lenders prefer to lend to borrowers who are younger, as they have a longer repayment period.
- Credit score: A good credit score will make you a more attractive borrower to lenders.
- Current loan obligations: If you already have other loans, lenders will need to take this into account when calculating your debt-to-income ratio.
- Documentation process: Lenders will need to see proof of your income, employment, and assets before they can approve your loan.
Apart from the following points lenders use the following points for determining a home loan amount for a 60000 salary-
- Multiplier Method
In the multiplier method, lenders use a multiplier to determine the maximum amount of money you can borrow based on your income. The formula is:
Loan amount = Multiplier x Monthly income
The multiplier will vary depending on the lender and your credit score. Lenders with lower credit scores will typically have lower multipliers.
For example for a home loan for 60000 salary :
| Your Income = ₹60,000 The set multiplier by the lender = 20 Therefore, the maximum loan amount you can be eligible for = ₹60,000 x 20 = ₹12,00,000 |
- FOIR or Fixed Obligation to Income Ratio
A financial metric used by lenders to assess a borrower’s ability to repay a loan. It is calculated by dividing the borrower’s total monthly fixed obligations by their monthly income.
The formula for FOIR is:
FOIR = Total monthly fixed obligations / Monthly income
For example, to calculate an FOIR of 60000 salary for a home loan will be as follows-
| For a ₹ 60,000 salary Let’s assume the FOIR percentage = 50% Your existing obligation = ₹10,000. The loan amount will be as follows: (Salary x FOIR percentage – Existing Obligations) (₹ 60,000 x 50%) – ₹10,000 = ₹30,000 – ₹10,000 =₹ 20,000 |
The loan amount an individual os eligible for with a salary of 60000 with the above example is 20,000
Note- The actual amount may vary from one lender to another. Please check with your banker to get an accurate amount.
How Much Home Loan can I get on 60000 Salary
Any individual with a stable income can apply for a home loan. The exact loan amount offered varies between lenders, but typically, applicants can avail a loan of around 60 times their annual salary as the home loan amount.
Therefore, for a salary of ₹60,000 one can avail a home loan of approximately ₹36,00,000.
However, this may differ based on other factors, including the applicant’s creditworthiness, debt-to-income ratio, age, and property value. To improve eligibility, maintaining a good credit score, reducing existing debts, and saving for a higher down payment are essential. Additionally, considering a longer loan tenure and including co-applicants with stable incomes can enhance the chances of obtaining a more substantial home loan amount.
Refer to the table below to know the how much home loan you may get base on your Salary:
| Monthly Income | Home Loan Amount |
| ₹60,000 | ₹36,17,307 |
| ₹55,000 | ₹33,15,865 |
| ₹50,000 | ₹25,83,791 |
| ₹45,000 | ₹23,25,412 |
| ₹40,000 | ₹20,67,033 |
Home Loan Eligibility For 60000 Salary
The borrower should meet a set of criteria to be eligible for a home loan. The criteria may vary depending on the lender you choose. Given below are the standard eligibility criteria for home loan that the borrower should be ready with:
- Age: Typically 21 to 60-70 years.
- Income: Stable source to afford repayments and minimum of ₹15,000 per month
- Credit Score: Good score (usually 650+).
- Employment Stability: Steady job or business history.
- Debt-to-Income Ratio (DTI): Below 40-50%.
- Down Payment: Usually 10-20% of property value.
- Property Type and Value: Compliant with lender guidelines.
- Citizenship and Residency: Citizen or permanent resident of India.
- Co-applicants or Guarantors: Optional but can boost approval chances.
Documents Required for Salaried Person
For the loan application to get approved, the applicant needs to provide certain documents for verification of identity, income, etc. Given below is a list of documents required for a home loan for salaried persons in India are as follows:
- Identity Proof: This could be your PAN card, passport, driving license, voter ID card, or Aadhaar card.
- Address Proof: This could be your rent agreement, electricity bill, water bill, or Aadhaar card.
- Proof of Employment: This could be your latest salary slip, Form 16, or a letter from your employer.
- Bank Statements: This could be your bank statements for the last 6 months.
- Property Documents: This could be the sale agreement, property registration documents, or a copy of the plan approved by the local authorities.
- Photographs: You will need to submit a few passport-sized photographs.
- CIBIL Score: Lenders will also look at your CIBIL score when considering your home loan application. A good CIBIL score will make you a more attractive borrower.
Note that each lender may have a different list of documents required. Before applying for a mortgage, you should always check with the lender.
Also Read: Joint Home Loan – Eligibility, Documentation And Benefits
Documents Required For Home Loan In Axis Bank
Axis bank is reputed Indian bank that offer a variety of loans including home loans. If you want apply for an Axis bank home loan, here are the documents required:
- Mandatory Documents: Application Form, PAN Card
- Proof of Identity and DOB: This could be your Govt. employee ID, passport, driving license, voter ID card, or Aadhaar card.
- Proof of Address: Aadhaar card, driving license, voter ID, electricity bill, property tax receipt, gas bill, etc.
- Proof of Income: This could be your 3 months pay slip.
- Signature Proof: This could be PAN card, passport or banker’s verification.
How Can I Improve My Eligibility For Home Loan with a Salary of 60000?
Improving your home loan eligibility for a salary of ₹60,000 can increase your chances of getting approved for a higher loan amount or better loan terms. Here are some steps you can take to enhance your eligibility for a home loan:
- Boost credit score: Pay bills on time and reduce outstanding debts to raise your creditworthiness.
- Reduce existing debts: Lower outstanding loans and credit card balances to decrease the debt-to-income ratio.
- Save for a larger down payment: Accumulate more savings to increase the initial payment, reducing the loan amount needed.
- Add co-applicants with income: Include a family member with a stable income to enhance overall loan eligibility.
- Consider a longer loan tenure: Opt for an extended repayment period to reduce monthly EMIs and improve affordability.
- Maintain stable employment: Avoid frequent job changes to demonstrate stability and reliability to lenders.
- Clear outstanding dues: Ensure all bills are paid on time and resolve any pending dues to enhance creditworthiness.
- Research different lenders: Compare loan options from various lenders to find the best terms and conditions for your situation.
Conclusion
In conclusion, understanding how much home loan you can avail with a salary of ₹60,000 is crucial when planning to purchase your dream home. To maximize your chances of approval for your desired loan amount, focus on improving your credit score, reducing debts, and saving for a higher down payment. With the right financial strategy and knowledge you can move closer to turning your homeownership dreams into reality.
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