How is eligibility
on your income, different banks consider different percentages that you can set
aside for paying EMIs. This percentage depends on parameters like your
occupation and number of dependents. Your EMI is then calculated based on
Interest rate of the bank
Time period for which you want loan
Loan amount required by you
calculator then lets you know how much loan you are eligible for.
Medical allowance and LTA (leave travel allowance) are not considered as part of
income as banks consider them as reimbursements.
also consider the borrower's credit history and CIBIL score before sanctioning
The higher your ability to pay back the loan, higher would be the
amount that you would be eligible for. Similarly, the loan amount is higher for
bigger tenures and lower interest rates.
There are other ways to increase your
loan amount like clubbing your income. You can jointly apply for a loan along with a
spouse or any other earning member of the family to increase your loan
How is EMI calculated?
are used to pay off both interest & principal each month. It is calculated
on the following parameters
Amount of loan
time period for which the loan is taken (Tenure of loan)
EMIs can be reduced by increasing the time period, but this will come at a cost
of more interest to the bank and liability for a larger duration.