CA Hemang Shah (PRACTICE) (658 Points)
14 December 2011
CA Hemang Shah
(PRACTICE)
(658 Points)
Replied 14 December 2011
CA Maulik Rachh
(-)
(114 Points)
Replied 14 December 2011
It depends on your financial ability,bank will assess your financial ability to repay the amount ,bank will also check the other aspects like CIBIL records,and your past history,generally they will approve 60 to 70 PC of the amount required..and demand for collateal security also depends on your loan history..
CA Hemang Shah
(PRACTICE)
(658 Points)
Replied 14 December 2011
Dhanesh
(Service)
(75 Points)
Replied 20 December 2011
Hemang, Below is the formula which use bank to calculate loan eligibility
Annual Income/12= Monthly Income
(Monthly Income*50%)-any other EMI currently payable=X
X / Per lac emi of Home loan which you are applying for
50% = may very based on your credit rating score & past track records. You can check your credit score by paying 450 to CIBIL. The Score plays a critical role in the loan approval process. Your credit score provides loan providers with an indication of how likely it is that you will pay back a loan
Below is the eg for your reference-
Your Annual Income is 1200000. so your monthly income is 100000
100000*50%= 50000. If you are paying emi of 10000 then 50000-10000= 40000
If per lakh emi is 1000 then 40000/1000=40. Your eligibility is 40 Lakh
Please note I haven't consider there your credit record and past history. there are lots of factors where bank deside loan eligibility. Above example and formula is used with normal circumstances. Please check with bank when applying for loan
Thanks,
Dhanesh
CAclubindia
