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Securing a home loan on a 20,000 salary might initially seem like a daunting task, but it's important to note that various lenders understand the unique needs of individuals in this income bracket. Careful planning and responsible borrowing can make getting a home loan with Urban Money more achievable than you might think. In this, we will delve into crucial aspects such as interest rates and essential tips to make the entire process of a 20000 salary home loan.
Banks usually assess your loan eligibility based on several factors, including your income, credit score, existing debts, and job stability. Similarly, below we have highlighted the general eligibility criteria for seeking a home loan in 20,000 salary.
Here’s what you can expect:
For applying for a 20,000 salary home loan, the borrowers need to submit some documents to verify their eligibility. Here, we have listed the significant documents required by almost all banks:
Please note that the bank might ask for additional documents according to the application requirements.
Here are some tips to improve your chances of getting a home loan on a 20,000 salary:
Typically, salaried workers can borrow up to 60 times their monthly income for a home loan. Based on this assumption here’s a year-wise breakup of home loan for 20,000 salary with an interest rate of 8.40% p.a.
| Tenure | EMI (Yearly) | Annual Interest Paid |
| 5 Years | Rs 23,205 | Rs 88,820 |
| 10 Years | Rs 14,203 | Rs 85,218 |
| 15 Years | Rs 11,065 | Rs 81,980 |
| 20 Years | Rs 9,386 | Rs 78,350 |
| 30 Years | Rs 8,210 | Rs 73,680 |
Remember: The loan amounts and eligibility criteria are estimates and may vary depending on the lender and the borrower’s circumstances.
A person earning INR 20,000 salary on a monthly basis can take out a home loan which can range from INR 10 Lakhs to INR 20 Lakhs. This amount is mostly derived from the overall eligibility of the applicant. Any individual who is interested in applying for a home loan with INR 20,000 salary can check their eligibility via Urban Money’s home loan eligibility calculator. You can check which bank products you can avail of with ease for a more refined and accurate estimate. The entire process of checking your eligibility is discussed below:
You can also consider consulting with a financial advisor for personalized guidance on your home loan eligibility. They can help you assess your financial situation and recommend the best loan options for you.
Yes, HDFC enables candidates with 20,000 salary to apply for a home loan. However, when applying for a Home Loan, apart from monthly income other factors like credit score, loan amount and repayment tenure also stand as important key factors influencing the available loan amount.
Affording a home on a 20k salary can be challenging, but at the same time, it’s not impossible. Urban money provides borrowers with a wide variety of lending options to fulfil their housing dreams.
With a 20,000 salary, you still have the option and can be eligible for buying a home loan of around 8-10 Lakh (depending on various other factors set by the lending unit).