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04 - Income Eligibility Norms - Salaried

Credit Norms & Illustration : Mr. Vivek working with a leading MNC is looking for a maximum loan for
tenure of 25 years based on his monthly income @ ROI of 8.5% p.a. Income components are given below.
Salary Comp. Norms % Salary Comp. Calculation Amt. (Rs.)
Fixed Received Mthly(Gross) 100% 52,000 52,000
If Mthly: Avg. of M1=8,000
Preceding 3 mths. 50% x( M1+M2+ M3 ( 4,000
Variable 50% M2=9,000
If Qtrly: Avg. of 3
Preceding 2 Qtrs. M3=7,000
Annual: Based on 50% x( 1,20,000
Bonus 50% 1,20,000 ( 5,000
Appraisal 12
Sub-Total: Salary Income 61,000
Other Norms % Other Inc. Calculation Amt.
Income (Rs.)
Gross As per latest Rent 100% 45,000 p.m 45,000
Rental Agreement validated
with Bank Stmt.
Interest
Avg. of Int.,Div. Avg. of last 2 yrs. 100% Y1=2,46,000 ( 2,46,000+2,44,000 ( 20,417
& Com. inc. as per ITR 2 x 12
Y2=2,44,000
Sub-Total: Other Income 65,417
Other income is 65,417,
which is greater than
Other Inc. Capped at 100% of Salary Income salary income of 61,000 61,000
considered & hence other income
considered is 61,000.
Monthly Total Income = Salary Income + Other Income (61,000+61,000) 1,22,000
Loan Eligibility
Credit Income Amt.
Criteria Norms % Comp. Calculation (Rs.)
Max. EMI as a % of
FOIR 65% 1,22,000 (65% x 1,22,000) 79,300
Total Income considered
Less : Car Loan EMI:
More than 12 mths.
Existing loan will be considered 100% Rs,12,300 (79,300 - 12,300) 67,000
EMI O/s O/s for 18
as obligation
mnths.
Max. Loan Max. EMI Payable ( 67,000 ( x 1,00,000 83,22,981
possible EMI per lakh 805*
* EMI per lakh for Tenure of 25 years @ 8.5% p.a. is Rs.805

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