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06 - Income Eligibility Norms - SENP (CP Method)

Credit Norms & Illustration: Mr. Vivek, a SENP customer is looking for housing loan for a period of 25
years. He has a car loan with balance tenure of 28 months paying an EMI of Rs.26,572. He wants maximum
loan for tenure of 25 years @8.75% p.a.
Business Income Norms % Bus. Income Calculation Amt. (Rs.)
(Yearly)
Net Profit As per ITR 100% 24,00,000 24,00,000
Less Tax Paid As per ITR 100% 2,00,000 (24,00,000 - 2,00,000) 22,00,000
Plus Depreciation As per P&L 100% 2,25,000 (22,00,000 + 2,25,000) 24,25,000
Plus Int. paid on T.L As per P&L 100% 1,25,000 (24,25,000 + 1,25,000) 25,50,000
Plus Salary / Int.paid As per P&L and
to Partners / Directors Partners Capital 100% 1,50,000 (25,50,000 + 1,50,000) 27,00,000
Account
Plus Int. paid to As per Tax 100% 1,20,000 (27,00,000 + 1,20,000) 28,20,000
close relatives Audit Report
u/s. 40A2(b)
Sub-Total: Business Income per month (28,20,000/12) 2,35,000
Other Income Norms % Other Income Calculation Amt. (Rs.)

Gross As per latest Rent 100% 5,40,000 p.a (5,40,000/12) 45,000
Rental Agreement & B/S
Avg. of Int., Avg. of last 2 yrs. 100% Interest 4,46,000+5,44,000 ( 41,250
Y1=4,46,000 (
Div.& Com. as per ITR 2 x 12
income Y2=5,44,000
Sub-Total: Other Income 86,250
Other income is 86,250
Other Income Capped at 100% of Business which is lower than Bus. 86,250
considered Income Inc. of 2,35,000 and
hence income
considered is 86,250
Monthly Total Income = Business Inc. + Other Inc. (2,35,000 +86,250) 3,21,250
Loan Eligibility
Credit Norms % Income Calculation Amt.
Criteria Considered (Rs.)
Max. EMI as a %
FOIR 80% 3,21,250 (80% x 3,21,250) 2,57,000
of Total Income
Existing loan More than 12 mnths. Car Loan
installment to be considered as 100% EMI of (2,57,000 - 26,572) 2,30,428
O/s obligation Rs.26,572
Max. Loan Max. EMI Payable ( 2,30,428 ( x 1,00,000 2,80,32,603
possible EMI per lakh 822*
* EMI per lakh for tenure of 25 years @ 8.75% p.a. is Rs.822

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