How to Get a Home Loan on a Low Salary? (₹20K–₹30K Monthly)

Getting a home loan on a low salary might seem challenging, but with the right planning and documents, it’s absolutely possible. Here’s a step-by-step explanation with important tips to help you secure your dream home.

✅ 1. Know Your Loan Eligibility

Banks calculate eligibility based on income, age, liabilities, and CIBIL score.

Generally, 40-50% of your monthly salary can go into EMI.

On a ₹25,000/month salary, you can get a loan of approx ₹12–15 lakhs (with 15–20 years tenure).

✅ 2. Improve Your CIBIL Score

A CIBIL score above 700 increases your chances.

Pay credit card bills and existing EMIs on time.

Avoid loan defaults or bounced cheques.

✅ 3. Opt for a Joint Loan

Add a co-applicant like a spouse or parent with income.

This boosts your eligibility and total sanctioned amount.

✅ 4. Look for PMAY Subsidy (Pradhan Mantri Awas Yojana)

For low-income families, PMAY offers interest subsidies on home loans.

Under the EWS or LIG category, salaried individuals get a subsidy up to ₹2.67 lakh.

Documentation and Stability:

Maintain proper documentation such as salary slips, bank statements, tax returns, and proof of employment. This not only establishes income but also showcases stability.

Loan Terms and EMIs:

Opt for a longer tenure to reduce monthly EMI amounts. Keep an eye on the interest rates, as lower rates help manage the repayment even on a low income.