Home loan on ₹40,000 salary: the short answer
With a take-home salary of ₹40,000 a month and no other loans, most banks would lend about ₹23.05 lakh for 20 years at 8.5%, keeping your EMI at ₹20,000 (50% of income). With a 30-year tenure that rises to ₹26.01 lakh.
| Tenure | EMI at 40% of income | At 50% | At 60% |
|---|---|---|---|
| 10 years | ₹12.9 lakh | ₹16.13 lakh | ₹19.36 lakh |
| 15 years | ₹16.25 lakh | ₹20.31 lakh | ₹24.37 lakh |
| 20 years | ₹18.44 lakh | ₹23.05 lakh | ₹27.66 lakh |
| 25 years | ₹19.87 lakh | ₹24.84 lakh | ₹29.81 lakh |
| 30 years | ₹20.81 lakh | ₹26.01 lakh | ₹31.21 lakh |
What changes the amount
- Existing EMIs come straight off the limit. A ₹10,000 car EMI cuts your home loan by about ₹11.52 lakh.
- Co-applicant: adding a spouse’s or parent’s income raises the limit.
- Credit score: 750+ gets the best rates; a lower rate raises eligibility too.
- Age: banks usually want the loan repaid by 60–70, which limits tenure for older borrowers.
Down payment
RBI caps the loan at 90% of the property value up to ₹30 lakh, 80% up to ₹75 lakh and 75% above. Stamp duty and registration (6–8% in most states) are not financed. Add your savings in the calculator to see the home price you can afford.
Questions people ask
How much home loan can I get on ₹40,000 salary?
About ₹23.05 lakh for 20 years at 8.5%, if the bank allows an EMI of 50% of income and you have no other loans. At 40% it would be ₹18.44 lakh.