As this website only focuses on Mortgage loans, therefore we would restrict ourselves to describing about Mortgage products like Home Loans, Loan Against Property & Lease rental discounting etc for the salaried customers. Salaried individuals, working with good companies, with stability of income have an easy access to the Loans. Various banks have an approved list of companies, where they would do loans without much paper work. But for smaller and unstable companies there are generally more documents required. However in general if you are working with a new company or relatively smaller company it is always better to starting planning for your mortgage in advance.
Most of the banks / housing finance companies would take into account your current salary including all the fixed components which are not re-imbursements of actual expenses to arrive at your income. If you get incentive then the average incentive of the last year is taken at 40-50% and added to the fixed salary. If you are also getting a bonus on top of it 40 - 50% of the average bonus for the last two years is also added to the fixed salary. Some banks / housing finance companies also add back the income tax benefit which you would get if you are applying for a home loan. All this added together and divided by 12 would be you gross monthly income. Most of the banks take gross monthly income to fix your repayment capacity which would be 50 - 60% of the gross monthly income. You existing fixed obligation are deducted from this figure to arrive at the net EMI that you can pay to the bank and basis this the loan is decided.
Salaried customers are eligible for Home loan as per the income criteria below, basis your income you can check your eligibility here. Though it is comparatively easier for the salaried customer to get home loan, however your work profile and the company that you work with is equally important. While most of the private banks like Axis Bank, ICICI Bank, HDFC even PSU names like PNB Housing Finance have a very exhaustive list of approved companies, but the customer outside these companies can also avail of the loans easily from these institutions on case to case basis. Even if they don't fund your company or your kind of profile, they would inform you within a reasonable time frame. This is not the case with PSU names like LIC Housing Finance Limited or SBI, while applying for home loan with these institutions you should very clearly ask if your company is in the approved list of the companies. And if it is not you should spend only reasonable amount of time in fulfilling the requirement or chasing them. Since the transaction here has to happen in a time bound manner, the amount of time wasted here in getting your home loan approved from such institutions and chasing them leaves you with less time in approaching other institutions. Therefore while obtaining a home loan you should insist on timely decision on your case and if not, then you should approach a more suitable lender in a timely manner.
Salaried customers can also avail Loan Against Property for their personal requirements. The procedure for loan against property for salaried is similar to Home Loan and this loan is also an income based loan. The Loan amount doesn't solely upon the value of the property. The loan amount can go upto 65% of the market value of the property but would depend upon the income based eligibility. Though the banks don't fund the purpose of the loan / end use directly as the disbursement is done in your name but the lending institutions would be little more cautious of the end use of the money. This kind of loan is not available for speculative or investment purposes in shares or other marketable securities.
Salaried customers can also avail lease rental discounting for their personal or further investment into property requirements. Such loan is quite useful in creating long term assets, but should be used very carefully. Banks generally determine 75 - 85% of the monthly lease rentals receivable towards the repayment of the loan through EMI over the tenure of the loan. Kindly refer to the lease rental discounting section for more details.