How a bank decides the loan
Two limits usually apply. One is the EMI your income can carry. The other is the share of the house price a housing loan is allowed to cover. The bank takes the lower figure, and it also looks at your credit history. This page does the first two. It does not read a credit report.
Lenders often keep all EMIs inside 40% to 60% of net monthly income. That is a common range, not a rule. This page starts at 50%. Existing EMIs come off that room before a new loan is worked out.
A worked example: ₹1 lakh take-home at 30
Take-home pay of ₹1,00,000, age 30, retirement at 60, no other EMI, and 50% of income. The EMI room is ₹50,000 a month. Over 20 years at 8.25%, income supports ₹58,68,092. The rate is a starting point from the home loan rates page. It is not a sanction.
A house of ₹1,00,00,000 allows a loan of ₹75,00,000 at the 80% cap. Income is the lower figure, so the loan is ₹58,68,092. The EMI is ₹50,000. The down payment is ₹41,31,908. If the same loan runs to age 60, income supports ₹66,55,426.
Add a co-applicant earning ₹50,000 a month and the income loan rises to ₹88,02,138. The house still caps it at ₹75,00,000, so the down payment falls to ₹25,00,000. On a salary of ₹50,000, with no house price and the same 20 years, the income loan is ₹29,34,046.
The house cap and the down payment
The cap follows the size of the loan. A loan up to ₹30,00,000 can be 90% of the house. Above that, up to ₹75,00,000, it is 80%. Above ₹75,00,000, it is 75%. The page uses the largest loan that still sits inside its band. A flat cut of the house price can disagree with that, so this page does not use one.
Stamp duty, registration and paperwork stay out of the house cost, except when the house itself costs ₹10,00,000 or less. A bank may add those charges only in that smaller case. The down payment on this page is the house price minus the loan.
Ways to raise it, honestly
A co-applicant with income raises the EMI room. A longer tenure does too, until the retirement age you set. Closing another EMI does the same, because that money stays in the room. A cheaper house can be the limit once income is no longer the lower figure. None of these change a credit report.
The EMI on a loan you already have in mind is the EMI calculator. Buying against renting is rent vs buy. Paying extra each month is prepay vs invest. The guides cover how a home loan EMI is calculated and home loan tax benefits. More home tools are on loans and home.
This is an estimate for learning, not a sanction and not advice. Read the disclaimer.
