Home Loan on a Rs. 1 Lakh Salary: Know Your EMI and Borrowing Capacity

If you are earning Rs. 1 lakh per month, buying a home could be well within reach thanks to home loans. But how much can you actually borrow based on this income? While the thought of a new home is exciting, figuring out your home loan eligibility is essential to making that dream a reality.

Let’s dive into how much you can get approved for, the costs involved, and tools like the home loan EMI calculator and eligibility calculator to plan your next steps confidently.

Factors affecting your home loan amount

• Income stability: A steady and high income increases your eligibility for a bigger loan.
• Existing debts: Your current financial obligations are considered while determining the loan amount.
• Credit score: A good credit score (725 or above) can boost your eligibility and offer better terms.
• Age: The younger you are, the longer the loan tenure, which improves your chances of getting a larger loan.
• Loan tenure: Longer tenures can lower your EMIs and make larger loans manageable.

Calculating your loan amount on Rs. 1 lakh monthly income

To get an idea of the loan amount, let us look at an essential factors lenders consider: the fixed-obligation-to-income ratio (FOIR). Generally, lenders in India use FOIR to limit monthly EMIs to around 50% of your monthly income. Here is how this affects your loan eligibility:

• Maximum EMI affordability (50% of monthly income): Rs. 50,000
• Typical interest rate: 8-9% per annum
• Loan tenure: up to 20 or 30 years (for extended affordability)

With this, your monthly EMI affordability indicates that your home loan could be in the range of Rs. 50 lakh to Rs. 60 lakh, depending on the home loan interest rate and tenure.

Check your home loan amount eligibility

To check how much home loan you are eligible for, you can use the home loan eligibility calculator offered by Bajaj Finance. This tool provides an easy, accurate estimate of your loan amount based on factors like your income, age, and monthly obligations. Simply enter the information and the calculator will instantly show you an estimate of your eligible loan amount, helping you plan your finances better and understand your borrowing capacity. This approach is especially helpful for making informed decisions on the amount and tenure that best suit your budget. Using the eligibility calculator can save time and simplify the home loan application process.

Example EMI calculation for Rs. 1 lakh monthly income

For a clearer understanding, here is an example calculation with a Rs. 1 lakh monthly salary using 8.5% interest rate over a tenure of 20 years.

Loan amount (Rs. )	Interest rate (%)	Tenure (years)	Monthly EMI (Rs. )
50,00,000	8.5	20	43,391
55,00,000	8.5	20	47,730
60,00,000	8.5	20	52,068

With a Rs. 1 lakh monthly income, an EMI close to Rs. 50,000 is manageable, allowing a loan amount of around Rs. 55–Rs. 60 lakh.

Tips to increase your home loan eligibility

If your estimated loan amount falls short of your needs, here are a few tips to maximise it:

• Choose a longer tenure: Opting for a longer tenure can reduce the EMI, which may increase the loan amount lenders are willing to offer.
• Co-apply with a family member: Adding a co-applicant (such as a spouse or parent) with a steady income can improve your loan eligibility and increase the approved amount.
• Improve your credit score: If your credit score is below 725, work on improving it by clearing outstanding debts and making timely payments.
• Reduce existing debts: Lowering any current loan obligations before applying for a home loan helps improve your FOIR, allowing for a higher loan amount.

Eligibility criteria to get a home loan

To qualify for a Bajaj Housing Finance Home Loan, you need to meet the following requirements:

• Nationality: Applicants must be Indian citizens residing in India.
• Age: Salaried applicants should be aged between 23 years and 67 years, while self-employed individuals should be between 23 years and 70 years. CIBIL Score: A score of 725 or above is generally required for loan approval.
• Occupation: Eligible applicants include salaried employees, professionals, and self-employed individuals.

Documents required to apply for a home loan

When applying for a home loan with Bajaj Housing Finance, you will need to provide these documents:

• KYC documents: Identity and address proof
• Proof of income: Salary slips or profit and loss statements
• Business proof: For self-employed applicants
• Bank statements: Last six months’ account statements

Please note that this is a general list and may vary depending on your specific loan application.

How to apply for a Bajaj Housing Finance Home Loan

Ready to apply? Here is a quick, step-by-step guide to get started:

1. Click the 'APPLY' button on this page.

2. Provide your full name, mobile number, and employment type.

3. Choose the type of loan that you want to apply for.

4. Generate and enter the OTP to verify your phone number.

5. After OTP verification, fill in additional details like your monthly income, the loan amount you need, and whether you have identified a property.

6. Enter your date of birth, PAN number, and other requested details based on your occupation type.

7. Finally, click the 'SUBMIT' button.

That is it! Your application will now be submitted. A representative will reach out to you and assist you with the next steps.

Ready to take the next step toward your dream home? Apply for a Bajaj Housing Finance Home Loan today.