Roughly 55% of your monthly salary is your eligibility for EMI. So in your case your EMI will be Rs 11,000+/- which means around Rs. 12 lakh home loan for the tenure of 20 yrs. This is with the assumption of there is no other loan liability on you. For an example car loan, two wheeler loan etc.
As 20000 Rs as monthly income you can get minimum of 20000 x 60 = 1200000 Rs loan.
If you want to increase your loan amount following can be done.
- Addition of co-applicant with some more monthly income which will increase the loan amount.
- Show more income source, like Passive income, Fixed deposit or part time job etc.
- Increase your Credit score. By clearing all your past credit card bills and past loans.
The loan amount you can avail depends on criteria like your credit score, salary, age, location, current obligations, etc. Lenders usually offer a home loan that is 60 times your salary.
However, lenders do not generally consider your in-hand salary when determining the loan amount. Your in-hand salary can include the following –
- Basic salary
- Medical allowance
- Leave travel allowance (LTA)
- House rent allowance (HRA)
- Other allowances, etc.
Now, a lender will not consider allowances like medical and leave travel when assessing your income. These allowances are provided for the respective expenses; hence, financial institutions exclude them.
|Net Monthly income||Home Loan Amount|
High income will fetch you a higher home loan. However, existing loan EMIs and obligations can lower the actual loan-to-value. Hence, foreclosing any existing loan or paying off credit card debts is an ideal way to increase your home loan eligibility.
Also, you must improve your CIBIL score. A credit score of 750 or above makes you more eligible for the loan.