Many of you must be planning to
take a loan for buying your dream car or dream house. But most of you must not
be knowing how much loan can you avail. All banks and housing finance companies
(HFCs) have their different eligibility criteria and calculations for
considering how much loan is an individual eligible.
As a thumb rule, the banks / HFCs
consider that your debt outflow (EMI of all loans) should not exceed 40% to 45%
of your monthly income / take home salary. So, you are eligible for a loan
whose EMI will not be more than 40% of your monthly income / take home salary
including all existing loan EMIs.
Illustration:
Mr. Karan has a net take home
salary of Rs.50,000 per month. He does not have any existing loan at present.
How much loan can he get?
Solution:
Karan will be eligible for loan
amount whose EMI will be upto Rs.20,000. At present, Home Loans are available
around 10.25% p.a. for loan amount below Rs.30 lakhs. So, Mr. Karan will be
eligible for a loan amount of Rs.20.37 Lakhs @ 10.25% p.a. for 20 years term,
with an EMI of Rs.20,000.
