Our nation’s affordable loan rates are making home owning considerably easier to afford than it was in the past. Furthermore, the process of getting a home loan is much easier because of the efforts of professional loan providers and other financial organizations. Thus, it increases demand from borrowers in the inexpensive, middling, and premium segments.
Many Indians have ambitions of owning a home. Over 70% of Indians, based on a recent survey, agree that purchasing a home is an important milestone. But getting a housing loan can sometimes seem tricky and time-consuming, particularly when checking out how much money one is qualified for.
Owning a home is unquestionably an amazing achievement and a symbol of security and personal development. Furthermore, if your monthly income is Rs. 40,000, You probably find it difficult to answer the question, “How much housing loan can you borrow on a 40,000 salary?” Your loan size is influenced by a variety of circumstances; to have a deeper understanding of these elements, we will go over the most significant variables and professionally advised steps.
How Much Can You Borrow Up to When You Make Rs. 40,000 Monthly?
With an average monthly income of ₹40,000, the maximum loan amount is entirely dependent on a number of criteria. The eligibility criteria include a CIBIL score, the applicant has to be working at the time of applying, an active loan in his/her name, and lastly, the length of the loan. Always, the lender has gone for the debt-to-income ratio criterion for deciding how much to lend to a particular applicant.
Additionally, since the lender determines the EMIs depending on what you make every month, salary consideration is crucial. Nonetheless, a person making 40,000 a month should be able to obtain a loan for between ₹20 and ₹25 lakhs, with a term of about 20 years and a fair interest rate.
You Should be Expecting the Following Loan Amounts from Various Banks if Your Salary is Rs 40,000:
| Lender | Monthly Salary | Home Loan Size |
| 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 |
Top Home Loan Offers in 2024
| Bank/Finance Company | R.O.I (Reducing Per Annum) | Processing Fees | Loan Amount | CIBIL Score | Min. & Max. Loan Amount |
| HDFC Bank Home Loans | 8.45% – 10% | 0.5% – 1% | 5.00 Lacs – No Limit | 650 | 5.00 Lacs – No Limit |
| Kotak Bank Home Loan | 8.75% – 10% | N/A | 20.00 Lacs – No Limit | 700 | 20.00 Lacs – No Limit |
| Bank of India Home Loan | 8.5% – 10.75% | 0.25% – Rs.10000 | 10.00 Lacs – No Limit | 675 | 10.00 Lacs – No Limit |
| Canara Bank Home Loan | 9.25% – 13.8% | N/A | 10.00 Lacs – No Limit | 675 | 10.00 Lacs – No Limit |
| Aavas Housing Home Loan | 9.9% – 18% | 1% – 1.5% | 25.00 Lacs – 5.00 cr | 650 | 25.00 Lacs – 5.00 cr |
| Bajaj Housing Finance Home Loan | 8.45% – 10% | 0.2% – 0.5% | 5.00 Lacs – 75.00 cr | 650 | 5.00 Lacs – 75.00 cr |
| PNB Housing Home Loan | 8.75% – 14% | 0.25% – Rs.10000 | 5.00 Lacs – 20.00 cr | 625 | 5.00 Lacs – 20.00 cr |
| Shri Ram Housing Finance Home Loan | 11.5% – 13% | 1% – 1.25% | 10.00 Lacs – 1.00 cr | 650 | 10.00 Lacs – 1.00 cr |
| We Rize Home Loan | 10% – 18% | 0.5% – 1% | 5.00 Lacs – 75.00 Lacs | 650 | 5.00 Lacs – 75.00 Lacs |
| Mahindra Finance Home Loan | 9% – 15% | 1% – 3% | 3.00 Lacs – 75.00 Lacs | 650 | 3.00 Lacs – 75.00 Lacs |
| Capri Global Bank Home Loan | 9.5% – 15% | 1.25% – 1.5% | 10.00 Lacs – 1.50 cr | 650 | 10.00 Lacs – 1.50 cr |
| Tata Capital Home Loan | 8.6% – 11% | 0.2% – 0.5% | 30.00 Lacs – 7.00 cr | 750 | 30.00 Lacs – 7.00 cr |
| Aditya Birla Home Loan | 8.9% – 11% | 0.5% – 1% | 25.00 Lacs – 25.00 cr | 675 | 25.00 Lacs – 25.00 cr |
| Piramal Finance Home Loan | 10.5% – 14% | 1% – 1.5% | 30.00 Lacs – 5.00 cr | 650 | 30.00 Lacs – 5.00 cr |
| Satin Housing Home Loan | 11% – 18% | 2.5% – 3% | 5.00 Lacs – 1.00 cr | 700 | 5.00 Lacs – 1.00 cr |
| Indiabulls Finance Home Loan | 9.4% – 10% | 0.5% – 1% | 20.00 Lacs – 5.00 cr | 675 | 20.00 Lacs – 5.00 cr |
| Federal Bank Home Loan | 8.5% – 10% | 0.5% – Rs.13000 | 50.00 Lacs – 20.00 cr | 675 | 50.00 Lacs – 20.00 cr |
| IDFC Bank Home Loan | 8.85% – 9.25% | 1% – 1.5% | 10.00 Lacs – 5.00 cr | 680 | 10.00 Lacs – 5.00 cr |
| ICICI Bank Home Loan | 8.6% – 10% | 0.25% – 0.5% | 50.00 Lacs – No Limit | 700 | 50.00 Lacs – No Limit |
| Axis Bank (Asha Home Loan) | 9.9% – 14% | 0.5% – 1% | 5.00 Lacs – 1.00 cr | 700 | 5.00 Lacs – 1.00 cr |
| Yes Bank Home Loan | 9.4% – 10.5% | 0.25% – 1% | 50.00 Lacs – 10.00 cr | 700 | 50.00 Lacs – 10.00 cr |
| Yes Bank Home Loan (Small Segment) | 9.9% – 11% | 1% – 1.25% | 5.00 Lacs – 1.00 cr | 680 | 5.00 Lacs – 1.00 cr |
| Standard Chartered Home Loan | 8.5% – 10% | 0.5% – 1% | 25.00 Lacs – 25.00 cr | 700 | 25.00 Lacs – 25.00 cr |
| Jana Small Finance Bank Home Loan | 10.5% – 13.5% | 1% – 1.5% | 5.00 Lacs – 3.00 cr | 650 | 5.00 Lacs – 3.00 cr |
| DCB Bank Home Loan | 9.75% – 14% | 0.5% – 1% | 30.00 Lacs – 3.00 cr | 650 | 30.00 Lacs – 3.00 cr |
| SBI Bank Home Loan | 8.5% – 10.4% | N/A | 10.00 Lacs – No Limit | 650 | 10.00 Lacs – No Limit |
| Bank of Maharashtra Home Loan | 8.5% – 9.65% | N/A | 10.00 Lacs – No Limit | 675 | 10.00 Lacs – No Limit |
| Indian Bank Home Loans | 8.5% – 10.4% | N/A | 10.00 Lacs – No Limit | 675 | 10.00 Lacs – No Limit |
| Union Bank of India Home Loan | 8.5% – 10.8% | N/A | 10.00 Lacs – No Limit | 675 | 10.00 Lacs – No Limit |
| Central Bank of India Home Loan | 8.5% – 10.4% | N/A | 10.00 Lacs – No Limit | 700 | 10.00 Lacs – No Limit |
| Bajaj Finserv Home Loan | 8.5% – 10% | 0.2% – 0.5% | 20.00 Lacs – 15.00 cr | 700 | 20.00 Lacs – 15.00 cr |
| L&T Finance Services Bank Home Loan | 8.5% – 9.5% | 0.25% – Rs.10000 | 30.00 Lacs – 3.00 cr | 650 | 30.00 Lacs – 3.00 cr |
| Vistaar Finance Home Loan | 13% – 21% | 2% – 2.5% | 5.00 Lacs – 50.00 Lacs | 650 | 5.00 L |
How Can You Check Out if You Are Eligible for a Housing Loan?
Eligibility for a home loan is determined by looking at a number of variables. This is the exact guide you can choose to use to ensure a seamless loan application process:
Digital Loan Calculators: You have probably come across a calculator on a lender’s site while looking for a reliable source. To make it simpler for customers to assess everything independently, the majority of financial firms and banks provide online calculators for housing loans. Therefore, one can proceed in accordance with that.
Check out Your Credit Score: You should continue to monitor your credit score on a regular basis. You always get multiple benefits from having a high CIBIL. Additionally, even in the absence of any necessary documentation, it increases your chances of receiving a straightforward loan process.
Present-day Home Loan Interest Rates from Various Financial Institutions
The policies and requirements of the lender determine the interest rate on house loans. Even if you should conduct thorough research to choose the lender willing to provide the best terms at the most affordable interest rate, Generally speaking, the maximum interest rate is determined by the loan size that you’re looking after, and the minimum is between 8.35% and 8.40% p.a. The interest rate is also determined by factors such as employment type, loan value, credit score, and others. If not, you should visit the lender’s official website just to get an exact response.
Bottom Line
Making wise selections is always a good idea, and being well informed about the home loan application procedure is really beneficial. It’s become too simple for anyone to own a house because of competitive financial assistance. You can confidently and effectively manage the process with the help of the important insights provided in this guide.
Your starting eligibility may be based on your employment, but with the correct money-management skills and advice, anyone can become a house owner, no matter what their income is.