East Bengaluru buyer answers
How much flat can I afford on my salary in Bengaluru?
Direct answer: How much home loan can I get on salary? Banks start from take-home pay. SBI allows EMIs of 20% to 70% of net income, depending on slab, and the RBI says banks typically count 55–60% of disposable income. Existing EMIs come off first. Then the LTV cap and your cash for the down payment and charges set the flat price.
Disclosure: acre&key’s advice is free to buyers.
Key takeaways
- Three ceilings decide your budget: what the bank will lend on your income, what LTV allows on the flat, and the cash you have.
- Existing EMIs cut your loan sharply. A ₹15,000 car EMI costs about ₹17 lakh of loan at 8.5% over 20 years.
- The bank's maximum isn't your comfort level. Test the EMI at a lower share of take-home before you book.
- Cash needed is more than the down payment. Add about 7.6% for stamp duty and registration on most Bengaluru flats.
How do banks work out your loan amount?
The RBI's home loan FAQ says your bank looks at repayment capacity, based on your monthly disposable income, a spouse's income, assets, liabilities and income stability. It says a bank typically assumes about 55–60% of your disposable income is available for repayment, though some banks work from gross income (RBI FAQ).
SBI describes it as an EMI/NMI ratio, where NMI is take-home pay after tax and payroll deductions. The ratio "varies in the range of 20% to 70% for different Net Annual Income slabs", and a co-applicant can raise the amount (SBI home loan FAQ). SBI doesn't publish the slab table for home loans, so ask your lender which ratio applies to you.
The EMI then converts into a loan amount through the rate and tenure. At 8.5% over 20 years, each ₹1 lakh of loan costs about ₹868 a month.
| Lender test | What it caps | Where the rule comes from |
|---|---|---|
| EMI-to-income (FOIR, EMI/NMI) | Total EMIs, including existing loans | The lender's own policy (SBI: 20–70% by slab) |
| Loan-to-value (LTV) | Loan as a share of the flat's value | RBI: 90% up to ₹30 L, 80% above ₹30 L to ₹75 L, 75% above ₹75 L (SBI MITC) |
| Age and tenure | How long you can repay | Lender policy (SBI: repay by 70) |
| Credit history | Whether, and at what rate | Lender policy. See why a home loan can be rejected. |
Our RBI LTV answer explains the LTV caps and what counts in the property value.
Worked example 1: income ceiling, with and without a car loan
Illustrative: take-home pay ₹1,50,000 a month, an existing car EMI of ₹15,000, a loan at 8.5% over 20 years. We use 50% as the lender's ratio for the example. Your bank's figure may be higher or lower.
| Step | Working | Amount |
|---|---|---|
| Total EMI room | 50% × ₹1,50,000 | ₹75,000 |
| Less car EMI | ₹75,000 − ₹15,000 | ₹60,000 |
| Loan this supports | ₹60,000 ÷ ₹868 per lakh | about ₹69.1 lakh |
| Without the car EMI | ₹75,000 ÷ ₹868 per lakh | about ₹86.4 lakh |
| Comfort test at 40% of take-home | (₹60,000 − ₹15,000) ÷ ₹868 per lakh | about ₹51.9 lakh |
The car loan alone costs about ₹17 lakh of eligibility. Clearing it before you apply can matter more than a few basis points on the rate. The 40% line is our planning suggestion, not a bank rule. It leaves room for school fees, a job change or a rate rise.
Worked example 2: cash ceiling
Same buyer, borrowing the bank's ₹69.1 lakh. That loan falls in the ₹30–75 lakh band, so LTV can be up to 80%.
| Item | Working | Amount |
|---|---|---|
| Highest flat value at 80% LTV | ₹69.1 L ÷ 0.80 | about ₹86.4 lakh |
| Down payment | ₹86.4 L − ₹69.1 L | about ₹17.3 lakh |
| Stamp duty and registration, about 7.6% | 7.6% × ₹86.4 L | about ₹6.6 lakh |
| Cash needed before interiors | about ₹23.9 lakh |
The 7.6% is the Greater Bengaluru rate for a resale flat or a new one above ₹45 lakh: 5% duty, 10% cess and 2% surcharge on the duty, and a 2% registration fee. Check yours with our stamp duty calculator. A new flat bought under construction also carries GST, covered in the full cost of a Bengaluru flat. Banks generally lend on the property value, not on these charges, so they come from your savings.
The three-ceiling budget (our framework)
Your flat budget is the lowest of three numbers:
- Income ceiling. EMI room after existing loans, converted into a loan, then add your down payment.
- LTV ceiling. The loan divided by the LTV share allowed for that loan size.
- Cash ceiling. Savings minus about 7.6% charges, interiors and a six-month emergency fund. That's the down payment you can actually make.
Whichever is lowest is your real budget. For most first-time buyers it's the cash ceiling, not the bank.
Checklist before you start viewing flats
- Take-home pay from your last three payslips, not your CTC
- Every existing EMI and credit card minimum listed
- Your lender's EMI-to-income ratio, asked for in writing or through an in-principle sanction
- EMI tested on our EMI calculator at today's rate and 1% higher. Once the loan is running, see prepaying a home loan or investing the surplus.
- Cash for the down payment, about 7.6% charges, interiors and an emergency fund
- Co-applicant considered. See joint home loans for the tax side and the home loan tax benefit
- The rent-or-buy maths done honestly (our rent vs buy answer)
New to the whole process? Start with the first-time buyer guide.
CA note: This is general information, not financial or tax advice. Lender policies change, so confirm eligibility with your bank, and talk to a CA about the tax side.
Frequently asked questions
How much home loan can I get on a ₹1 lakh salary?
It depends on your lender's EMI-to-income ratio and existing EMIs. With no other loans, an illustrative 50% ratio gives a ₹50,000 EMI, which supports about ₹57.6 lakh at 8.5% over 20 years. At 40% it's about ₹46 lakh. Ask for an in-principle sanction for your exact figure.
Is it based on gross salary or take-home pay?
Mostly take-home pay. SBI uses net monthly income after tax and payroll deductions. The RBI notes that some banks use gross income instead, so ask your lender which one it uses and what ratio applies to your income slab.
Do existing loans reduce my home loan eligibility?
Yes. Lenders deduct existing EMIs, and often card minimums, before working out room for the home loan EMI. In our example, a ₹15,000 car EMI cut eligibility by about ₹17 lakh at 8.5% over 20 years. Closing small loans before applying can help.
Does adding my spouse increase the loan?
Usually, yes. SBI says the loan amount can be increased by including a co-applicant, since the bank considers combined income. Both incomes then count towards the EMI test. Each co-owner who repays may also claim tax deductions in the old regime, which your CA can confirm.
How much down payment do I need?
At least 10%, 20% or 25% of the flat's value, depending on the loan size, under the RBI's LTV caps. Add about 7.6% for stamp duty and registration on most Bengaluru flats, plus interiors. Banks don't usually lend for those charges.
What EMI is comfortable for a first flat?
There's no official comfort figure. Banks may allow more than half your take-home, but we suggest testing the EMI at about 40% or less, including existing loans, and at a rate 1% higher than today's. If the budget only works at the bank's maximum, look lower.
Talk it through with acre&key
If you'd like help setting a realistic budget before you start viewing flats, book a consultation with acre&key.
References
Checked 19 Oct 2026.
- RBI, FAQs on housing loans (repayment capacity, 55–60% of disposable income): https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=77
- SBI Home Loans FAQ (EMI/NMI ratio 20–70% by income slab; co-applicant): https://homeloans.sbi.bank.in/faq
- SBI, Most Important Terms and Conditions, home loans (LTV slabs): https://homeloans.sbi.bank.in/downloads/Terms-and-Conditions.pdf