Let us suppose an individual is drawing a net salary of Rs 30,000 pm. Some housing finance companies will consider 55 per cent of the net monthly salary as being available for EMI payments. In this example, the amount works out to Rs 16,500 (i.e. 55 per cent of Rs 30,000).

The percentage of the salary available for making EMI payments will differ based on the individual's income. The higher the salary, the higher will be the percentage. This is so because the disposable income, and therefore the amount available for making EMI payments, rises with a higher salary and vice versa.

One can easily find out all by himself as to how much loan he can avail from any financial institution which will lend him the necessary funds to be utilized for the purpose of realizing the dream of owning a home.

Supposedly the income of an individual is at 30,000 pm and the 55 % of the same amounts to 16,500. The ROI is at 8% and the tenure or loan payment duration is for 20 years and the EMI per lakh is at 836 then an individual is eligible for almost 19 lakh and above loan.

The lending institution takes into consideration the following factors before giving any amount towards an individual; his profession that he/she is in and whether the same is considered as a negative profession; the location of the property and whether the same comes within the ambit of the organization to sanction the said loan. The personal profile of the individual also plays an important factor in sanctioning the loan .any legal proceedings being instituted in the court of law or if a person has been convicted or charged with moral turpitude such individuals will not be entertained.