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Understanding Home Loan Eligibility: How Much Home Loan Can I Get on My Salary?

By IIFL Home Loans | Published On Jul 05 2023 1:06 PM 1 min read 125 views 671 Likes

Starting the process of becoming a homeowner, you might ask a vital question: "How much home loan can I get on my salary?" This query is common among potential homeowners. The good news? There's a simple way to find out: check home loan eligibility.

Your income, one of the main factors, is directly connected to your borrowing power. Lenders need assurance that you can manage repayments comfortably. But remember, your salary isn't the only consideration. Your age, credit score, and existing debts matter too. Let's explore these factors together in the following sections.


Your salary determines your home loan amount

By the end of this article, you'll understand how much home loan you can anticipate based on your salary. Ready to get started? Let's lay the groundwork for your dream home.

Key Factors That Impact Home Loan Eligibility

Home loans can offer a brilliant way to get onto the property ladder. However, you may be wondering about the minimum salary for a home loan. The answer is multifaceted and hinges on two main factors: your willingness and your capacity to repay.

1. Timing: Willingness to repay: This is judged by your credit score, which reflects your current financial commitments and past credit behaviour. In simple terms, a high credit score is your best friend when applying for a home loan. It shows that you've been a reliable borrower and reassures lenders about your creditworthiness.

Lenders usually prefer a score of 650 or above. A credit score over 750 might even give you an advantage in bargaining for lower interest rates.

2. Capacity to repay: Secondly, your repayment capacity, also known as your 'in-hand' salary, plays a pivotal role. Lenders primarily focus on this when determining if you qualify for a house loan.

3. Your in-hand salary remains after deductions like EPF, Professional Tax, TDS, and so on are made from your gross salary. Lenders typically expect your net income, after personal and household expenses (usually 50%), to support your loan repayments.

Understanding these key components will empower you to manage your financial planning better. It will guide you to either work on improving these factors, if necessary, or give you the confidence that you're on the right path to secure a home loan for a ₹40,000 salary.  

How Much Loan Can I Get on ₹40,000 Salary?

If you are earning a salary of ₹40,000 a month and thinking about how to calculate home loan eligibility, you can easily determine the same using IIFL Home Loans' salary home loan calculator. Just input your details, such as your monthly income, desired interest rate, and loan tenure.


Home Loans - The keys to your dream home

Bottom Line

Besides, factors such as your credit score, age, and other factors also come into play. But with the home eligibility calculator, you're never in the dark. So try it and get one step closer to your dream home.

Summing Up

Awareness of these factors will put you in a stronger position when applying for a home loan. Remember, understanding how much loan you can get on a specific salary is not just about that number but involves a holistic look at your financial health and stability.

So, why wait? Now that you know how to calculate home loan eligibility, explore IIFL Home Loans for an easy home ownership journey.


1. How much home loan can I get as a salaried employee?

As a salaried employee, the home loan amount you can get typically depends on several factors, like your monthly income, credit score, existing debts, and loan tenure.

2. What is the rule for home loan eligibility?

Primarily, home loan eligibility requires you to be a resident Indian citizen within an age bracket, typically from 18 years to 75 years. 

3. Can I get a home loan without a government job?

Yes, you can get a home loan without a government job.


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