Owning a house in today’s life is truly a matter of great achievement, and getting a home loan is the very first step towards owning a home. An important question keeps creeping into the minds of home-loan borrowers: how much can they borrow to buy a house?
In this blog post, we will discuss the factors that determine your home loan. We will also cover an example of a Home Loan Amortization Scheme and the issues you may face. We will also be organizing how Brick & Bolt can help you to construct your dream home even within your financial capabilities .
Let’s consider an example of a home loan of Rs. 50,00,000 with a tenure of 25 years at an interest rate of 8.5%. Here’s a sample amortization schedule for a monthly EMI of Rs. 30,000.
| Year | EMI Paid | Principal Paid | Interest Paid | Remaining Balance |
| 5 | Rs. 18,00,000 | Rs. 7,00,000 | Rs. 11,00,000 | Approx. Rs. 43,00,000 |
| 10 | Rs. 36,00,000 | Rs. 18,00,000 | Rs. 18,00,000 | Approx. Rs. 32,00,000 |
| 15 | Rs. 54,00,000 | Rs. 32,00,000 | Rs. 22,00,000 | Approx. Rs. 18,00,000 |
| 20 | Rs. 72,00,000 | Rs. 48,00,000 | Rs. 24,00,000 | Approx. Rs. 4,00,000 |
| 25 | Rs. 90,00,000 | Rs. 50,00,000 | Rs. 40,00,000 | Approx. Rs. 0 |
This table illustrates how the principal and interest payments change over the loan tenure. Use an EMI calculator to estimate your monthly payments based on the loan amount and tenure.
What is the Maximum Loan for a 60K Salary?
The maximum loan for a 60K salary would be Rs. 45,000 to Rs. 55,000 per annum. The cost of an installment loan can vary depending on factors such as credit score and the company’s general lending policy.
It is necessary to underline that the sum depends on net monthly income, other obligations, and the chosen credit service specifics.
In the present scenario, most of the banks have adopted either the EMI/NMI ratio method or the multiplier method to assess the prospects of a home loan on a salary of Rs. 60,000:
– The EMI/NMI ratio is influenced by your current EMIs and net monthly income, with the ratio referring to the EMI/NMI ratio in this context. Traditionally, those people who have an EMI/NMI ratio below 60% can frequently apply for a home loan.
– In the multiplier method, banks multiply your NMI by a factor between 60 and 72 to determine the maximum loan amount. For example, Rs. 60,000 x 72 = Rs. 43,20,000.
Factors Impacting Home Loan Eligibility for 60K Salary People
1. Work Experience:
Employment history credit approvals for home loans depend more on the latest revenues from employment, and those who have been employed for at least a year or two get preferred.
2. Age:
As for the general requirements of the banks, applicants must be between the ages of 21 and 65 years to seek home loans.
3. Credit Score:
This is an important factor because a minimum credit score of 750 increases the chances of a loan being approved and may lead to better interest rates.
4. LTV (Loan to Value):
Though higher LTV ratios can lead to higher lending amounts, they come with a higher interest rate as well. LTV is a benchmark for a home loan, where most of the banks have a maximum LTV of 90 percent.
5. FOIR (Fixed Obligation-to-Income Ratio):
Lenders generally adopt a FOIR of up to 50% for home loans. If you have existing debts, paying them off and keeping those amounts low is crucial for a good FOIR.
6. Property’s Legal:
Having an acceptable legal title of the property and getting approval from the host government is of paramount importance for loan acceptance.
Home Loan Challenges on ₹60k Salary
For the matter to become easier for homeowners, especially securing a home loan on an Rs. 60,000 salary may be easier compared with a lower one; however, there can be a lot more concerns following that due to high property prices in most cities. To overcome these challenges, consider:
– Reducing the size of the property or searching for a locality with an affordable price.
– The second form is that the borrower pays a higher down payment to decrease the size of the loan and sustain reasonable interest rates on EMIs.
– One way to enhance your loan credit worthiness is by applying for the loan jointly with your spouse or any family member of your choice.
How Brick & Bolt Can Help You Build a House
Brick & Bolt, together with a number of options suggested, helps minimize the time and expenses needed to build a home while guaranteeing high-quality work. Their services include:
– Offering a collection of house designs and allowing the clients to choose from them according to their choice and within the set budget.
– Helping secure the rights and permits necessary to move forward with the project.
– Coordinating with the construction contractors to oversee the progress of the construction in order to meet the scheduled time and quality requirements.
– Some of the services that can be provided include facilitating post-construction services, such as maintenance and warranties.
– Brick & Bolt helps clients manage their financial balance more effectively, as they can build a house with a lesser loan amount compared to traditional construction methods.
– This is particularly beneficial for clients who are looking for affordable options without compromising on quality.
You will have all the matters concerning building these great homes dealt with by Brick & Bolt as you tackle matters concerning your financial balance.
Conclusion
Before you apply for a home loan it is important to consider the qualification and the financial position you are willing to put on the line. Think about the difficulties and examine possibilities such as co-application and support with practical execution from companies such as Brick & Bolt to avoid utter discomfort with the acquisition of a house.