Question 1

How much home loan can I get on my salary?

Accepted Answer

Banks typically allow EMIs up to 40-50% of your net monthly income. For a salary of 1 lakh per month, you can expect a home loan of approximately 40-55 lakhs depending on the interest rate and tenure, assuming no other existing EMIs.

Question 2

What is the ideal EMI-to-income ratio?

Accepted Answer

Financial experts recommend keeping your total EMI obligations (including home loan) below 40% of your gross monthly income. This ensures you have enough for other expenses, savings, and emergencies.

Question 3

How much down payment do I need for a home?

Accepted Answer

Most banks in India require a minimum down payment of 20% of the property value (80% LTV ratio). Some banks offer up to 90% LTV for loans under 30 lakhs. A larger down payment reduces your EMI burden and total interest paid.

Financial Calculators