How much salary is required to get a ₹1 crore home loan from SBI

If you are considering taking a ₹1 crore home loan from State Bank of India (SBI), it is necessary to understand the mathematics of your income and monthly instalments (EMI), as reported by TV9 Gujarati.

The bank's interest rates and loan tenure directly affect your EMI. SBI has increased its External Benchmark Lending Rate (EBLR) by 0.25% from 15 October 2026. Following this change, the bank's standard home loan interest rates are now between 7.50% and 8.80%. The rate at which you receive the loan will depend on your profile and credit score.

If you take a loan of ₹1 crore at an interest rate of 7.50% for a tenure of 20 years, you will have to pay an EMI of ₹80,559 per month. If the interest rate is 8.25%, the EMI will be ₹85,207, and at 8.80%, it will be ₹88,690. Thus, a difference of approximately ₹8,100 per month is observed between the lowest and highest interest rates.

Extending the loan tenure to 30 years provides relief in EMI, but the interest burden increases in the long run. For a 30-year tenure at 7.50% interest, the EMI reduces to ₹69,921, while at 8.25% it will be ₹75,127 and at 8.80% it will be ₹79,027. However, at a rate of 7.50% over 20 years, approximately ₹93.3 lakh interest will have to be paid, whereas in a 30-year tenure, this amount increases to nearly ₹1.52 crore, meaning you will have to pay ₹58 lakh more in interest.

To know how much salary is required for such a large loan, it is necessary to understand FOIR (Fixed Obligation to Income Ratio). According to Bajaj Finserv, most banks limit the EMI to 40-45% of income for large loans. For 7.50% interest and a 20-year tenure, if the EMI is 50% of the salary, an in-hand salary of approximately ₹1.61 lakh is required. If the limit is 45%, then ₹1.79 lakh and if it is 40%, a salary of approximately ₹2.01 lakh will be necessary.

Existing EMIs for a car or personal loan may reduce the capacity to take a home loan. The applicant should ask the bank for the actual interest rate and check their credit score. It is also necessary to understand whether the EMI will increase or the loan tenure will increase upon an interest rate hike. All these figures are based on the assumption of a single applicant, no other loans, and interest rates remaining stable throughout the entire tenure.