Home loan on 25000 salary
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Owning a home can be a little tough, due to rising housing costs. However, with the right strategy and knowledge, securing a home loan on a 25,000 salary is within reach.
Embarking on the journey to secure a home loan begins with a crystal-clear understanding of your budget. Before delving into the housing loan search, carefully assessing your income, expenditures, and savings is crucial.
With a monthly salary of 25,000, adopting a realistic and conservative budgeting approach is paramount. Factor in your monthly obligations, such as rent, utilities, groceries, and other bills, to gauge how much you can comfortably allocate towards a home loan each month.
How much home loan can I get on 25,000 Salary?
Determining the size of your home loan involves considering various factors such as income, property location, age, existing debts, and other relevant aspects.
Leverage a home loan eligibility calculator to pinpoint the loan amount aligned with your monthly income.
The table below estimates the home loan amount you might qualify for with a Rs 25,000 salary for an interest rate of 11%.
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Row 1
- Net Monthly Income
- Eligible Home Loan Amount
- Loan Tenure (Years)
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Row 2
- ₹25,000
- ₹17,06,353
- 30 Years
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Row 3
- ₹24,000
- ₹16,38,099
- 30 Years
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Row 4
- ₹23,000
- ₹15,69,845
- 30 Years
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Row 5
- ₹22,000
- ₹15,01,591
- 30 Years
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Row 6
- ₹21,000
- ₹14,33,337
- 30 Years
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Row 7
- ₹20,000
- ₹13,65,082
- 30 Years
Home Loan Eligibility Criteria
Understanding the eligibility criteria is crucial for both salaried and self-employed individuals. The table below outlines the minimum work experience requirements for different profiles:
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Row 1
- Profile
- Salaried
- Self Employed
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Row 2
- Employed with
- Government / PSU, Listed companies / MNC /cat a / cat b, Closely held companies / private limited / llp, Partnership / Proprietorship / others
- 1. Self Employed Professionals: Qualified doctor (MBBS/MD/MS), CA and Architect.
2. Self Employed Non-Professionals: Business Owners, Proprietorship, Partners of Partnership Firm and Promoter Director of closely held private and public limited companies. Director of listed-public companies will be treated
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Row 3
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Work Experience
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1. Government / PSU - No minimum work exp norms
2. Listed companies / MNC /cat a / cat b - 1 Years**
3. Closely held companies / private limited / llp - 2 years
4. Partnership / Proprietorship / other - 2 years ( Minimum 6 months vintage with current employer)
5. Cash Salary - 3 years ( Minimum 12 months vintage with current employer) -
AF - 2 years, MA - 3 years. In Same business ( same location and same line of business) to be validated during PD / Documentary Proof
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Row 4
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Age Norms
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Minimum - 21 years
Maximum - Government employees with pension - 70 years
other salaried - 62 years -
Minimum - 23 years
Maximum - 70 years
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Row 5
- Income Norms
- Rs. 25,000 Per month (net Salary)
- Rs . 1,80,000 per annum
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Row 6
- Credit Score
- 750 and above
- 750 and above
Improve Your Credit Score
- Your credit score is vital for getting a home loan. It shows how reliable you are and affects the interest rate you get.
- Improving your credit rating can lead to lower interest rates, ultimately saving you money over the life of the loan.
- Enhance your credit score by paying bills punctually, maintaining low credit card balances, and avoiding new credit accounts.
Consider Affordable Housing Programs
Government and non-profit organisations often provide affordable housing programs. These programs can facilitate securing a home loan with reduced down payments and interest rates. Investigate to determine your eligibility for such programs in your area.
Save for a Down Payment
Saving for a down payment on a 25,000 salary may seem challenging, but it's not impossible. Allocate a portion of your monthly income to build your down payment fund. Additionally, explore alternative funding sources like gifts from family members or down payment assistance programs.
Look for Co-Applicant
If you have a family member with a higher income and a good credit score/cibil score, consider having them co-sign your home loan.
Both parties have equal responsibility for the loan. A co-applicant can help you get a bigger loan or a lower interest rate.
Be Ready to Negotiate
When applying for a home loan, be prepared to negotiate terms such as interest rates, loan tenure, and closing costs. Research and compare offers from different lenders to secure the most favourable deal.
Adhering to these tips and strategies can enhance your chances of successfully securing a home loan on a 25,000 salary.
Patience and persistence are essential, and don't hesitate to seek guidance from a financial advisor or housing counsellor. With determination and the right approach, you can turn your dream of homeownership into a reality.
Note: The figures provided by the Piramal Finance eligibility calculator are indicative, and actual loan amounts may vary based on factors like your city, age, and other considerations.