Buying a ₹1 crore house? Here's the monthly salary you need to afford the home loan EMI comfortably

Buying a ₹1 crore house involves more than arranging the down payment and securing a home loan. Buyers also need to ensure that the monthly equated monthly instalment (EMI) does not eat into their household budget, emergency savings and long-term financial goals. While a lender may approve a substantial loan based on a borrower's income and credit profile, that does not necessarily mean the borrower can comfortably afford the repayment.

For a buyer making a 20% down payment of ₹20 lakh, the remaining ₹80 lakh would need to be financed through a home loan. At an illustrative interest rate of 8% a year over 20 years, the EMI would be approximately ₹66,900 a month. To manage this repayment without putting other financial priorities under pressure, the buyer would ideally need a monthly take-home salary of around ₹2.2–2.3 lakh, assuming no significant existing debt, said Sanjiv Bajaj, joint chairman and managing director of Bajaj Capital.

“The first thing to look at is not just how much loan a bank is willing to offer, but how comfortably the buyer can repay it every month,” Bajaj said.

How much salary do you need to buy a ₹1 crore house?

The monthly income required to afford a ₹1 crore property depends on the loan amount, interest rate, repayment tenure and the buyer's existing financial commitments. A longer tenure reduces the monthly EMI but increases the total interest paid over the life of the loan.

For an ₹80 lakh home loan at an illustrative interest rate of 8% a year, the EMI varies significantly depending on the repayment tenure.