Housing is becoming much more affordable than in the earlier era, thanks to the competitive lending rates around the country. Plus, professional lenders and other financial institutions have strengthened the ease of the process of getting housing loans. As a result, it stimulates demand amongst affordable, mediocre, and premium segment borrowers.
Having your own house is unarguably a remarkable success and a sign of stability and personal growth. And, if you are getting a 40,000 salary in a month, the question you must be struggling with is, “How much home loan can I get on a 40,000 salary?” There are a number of factors that influence your loan amount, and to understand it more closely, we will discuss the important considerations and professionally suggested steps to obtain a loan amount efficiently.
What’s the maximum loan amount with a 40000 salary?
The amount of the loan one can receive with a monthly salary of ₹40,000 is purely dependent on various factors. An individual has to complete all the eligibility criteria, which include the CIBIL score, current employment status, active loan in the borrower’s name, and loan tenure. Traditionally, lenders tend to opt for a debt-to-income ratio rule to determine the loan amount for a particular applicant. Also, salary consideration is important because the lender decides the EMIs based on your monthly income.
However, with a salary of 40,000, one can expect a loan amount ranging between ₹20 and ₹25 lakhs with a tenure of approximately 20 years at a reasonable interest rate. Apparently, these figures vary depending upon the lender’s policies and include factors to consider while approving the loan application. It is advisable to understand the eligibility criteria a lender has to follow, and smart planning is crucial for a smooth loan process.
With a salary of Rs 40,000, you can expect the following loan amounts from different banks:
| Lender Name | Monthly Salary | Estimated Home Loan Amount |
|---|---|---|
| IDFC | 40,000 | 20,00,000 to 25,00,000 |
| HDFC | 40,000 | 20,00,000 to 25,00,000 |
| SBI | 40,000 | 18,00,000 to 22,00,000 |
| ICICI | 40,000 | 20,00,000 to 25,00,000 |
| Axis Bank | 40,000 | 20,00,000 to 25,00,000 |
Note: The following table provides a general estimate and actual eligibility may vary based on individual factors. It’s essential to consult with a lender for accurate information.
How do I check my home loan eligibility?
The process of checking home loan eligibility involves several factors. Here is the precise guide you can opt to follow for a smooth loan application:
- Online Loan Calculators: While searching for a trusted lender and visiting their websites, you must have noticed a calculator available there. Most financial institutions and banks offer online home loan eligibility to make it easier for consumers to evaluate everything on their own. So, one can take further steps accordingly.
- Assess your credit score: You should keep checking your credit score regularly. Having a good CIBIL always benefits you in several ways. Plus, it improves your chances of getting a smooth loan process even in the absence of any required documents.
- Hire a Financial Advisor: Having a financial advisor by your side will help you secure a good loan amount. Also, he will guide you in making better future financial plans to qualify for the required loan.
Document Required for a Home Loan
Documentation is a key consideration, especially when applying for a home loan. Documents assure a lender that the applicant is capable of making the monthly EMIs and can repay the amount as per the decided tenure. We have narrowed down the list of commonly required documents below:
Identity and Residential Proof: These are two important documents one cannot miss to obtain a home loan. You can consider showing your passport, driving licence, ID card, Aadhar card, etc.
Income Proof: Despite the salary you are getting credited to your account, it is always essential to upload the income proof. This is necessary to assess your ability to repay the loan. Plus, if you are a salaried applicant, the lender or bank will ask you to upload your salary slips.
Property Documents: When it comes to home loans, property documents, including sale agreements, property tax receipts, etc., will be asked to be uploaded to the online loan application.
Current Interest Rate of a Home Loan from Different Lenders
The home loan interest rate varies depending on the lender’s policies and criteria. Although you should do in-depth research to find the lender keen to offer the best deals at the lowest interest rate, Generally, the minimum interest rate is 8.35% to 8.40% p.a., and the maximum depends on the loan amount one wants to obtain. Also, the interest rate is decided on the basis of credit score, loan amount, employment nature, etc. Otherwise, you should go through the official website of the lender to get a precise answer.
Here are the current interest rates from some leading lenders:
| Lender Name | Interest Rates |
|---|---|
| IDFC | 7.25% - 8.50% |
| HDFC | 7.20% - 8.45% |
| SBI | 6.90% - 8.30% |
| ICICI | 7.00% - 8.40% |
| Axis Bank | 7.10% - 8.50% |
Note: Interest rates are subject to change and may vary based on the lender’s policies and market conditions.
Summarising
It is always advisable to make informed decisions, and when it comes to applying for a personal loan, having great knowledge regarding the process helps a lot. Competitive lending has made it too easy for someone to have their own home. The significant insights available in this guide will help you thoroughly navigate the process with confidence.
