How much % of my net salary should I pay as EMI for a home loan. What is the maximum limit of home loans that I must avail based on my salary?

Hi reader, Every bank has its parameters for EMIs on home loans and their amount. Usually, while borrowing a home loan, the EMI is generally restricted to a maximum of 40% to 50% of your net income (monthly) by most banks. That means, whatever your monthly income is, your monthly instalment can’t exceed 40-50% of your monthly income. Even if you get the option of paying an EMI that exceeds 50% of your salary, it isn’t recommended as it may hamper your other financial requirements and can also be risky in case of any health or other emergencies. When it comes to the maximum limit, you can usually get a home loan that’s 60 times your salary. This excludes your medical and travel allowances. Hypothetically if your in-hand salary is INR 50,000 and after excluding all the allowances it comes down to INR 39,000, it’s upon this amount that your home loan will be calculated. Also, the limit of your home loan will differ for different lenders. So, it’s always advisable to check the eligibility criteria first and then decide the amount of loan to avail. There’s an online aggregator called KuberX that’s of great help when it comes to loan calculations. It’s an online tech-based platform that allows you to calculate the ideal loan amount and give the best-suited option based on your income. Its AI-powered algorithm and loan calculator is of great help in this aspect. Do check it out and see if it helps!