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If you are planning to take home loan and want to take home loan in lieu of salary, other income, then you have to keep some things in mind. How much home loan can you get against salary and other income to buy a house? You are being given complete information about this here. Determining the right budget is the most important part of your home buying. Unless you know how much home loan you will get, your buying journey will not be on the right track. Let us explain to you in simple terms how to find out the maximum home loan amount that you can expect.
Your ability to repay the home loan depends on how much you earn, and is usually verified by the lending company or bank. Higher your income, higher will be your home loan eligibility. Each lender has its own way of calculating the maximum loan amount and the amount differs from one lender to another. However, there is a rule of thumb that can help you get a closer idea of the maximum loan requirement.
Customer Profile Required for Home Loan Eligibility
The profile of the customers plays a vital role in home loan eligibility. While the home loan limit can go up to 6 times your annual income, not all borrowers get the highest multiplier. Your income source plays an important role in deciding your home loan eligibility. According to BankBazaar, having a stable and sufficient income is important for customers who want to be eligible for a higher home loan amount.
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People in the salaried class are considered more stable. Such people can generally avail a home loan amount of up to 6 times their annual salary. However, in the case of self-employed people, a lender usually offers a lower multiplier. Lenders in India generally offer home loans to self-employed individuals based on 2-3 times their annual net income or up to 80% of the property value, whichever is lower.
Understand how much loan can be availed
Suppose you are employed and have an annual income of Rs 10 lakh, then you can get a home loan up to Rs 60 lakh. If you are 45 years of age or less, with an annual income of Rs 15 lakh, you can avail a home loan up to a maximum of Rs 90 lakh. However, in case of old age, you will get only 75 lakh rupees. On the other hand, if you are self-employed and the annual income is Rs 15 lakh, then you can get a home loan up to Rs 45 lakh only.