Taking a loan is a part of everyone’s need. It is a little easier for a salaried person to get a loan from banks, as the monthly income remains fixed and banks also expect their loan to be repaid on time. In such a situation, the question arises that how much loan will be available on your salary and what can be its maximum EMI. There is also a clear guideline of banks in this regard.
New Delhi. Often we need a loan to meet any major financial goal. It is believed that banks give loans easily to the employed person. But have you thought about how much loan you can get on your salary and how much you can fix your EMI.
Banking experts and founder of Vice of Banking Ashwini Rana says that the Reserve Bank of India has a clear guideline regarding salary and loan against it. All the banks also follow this very well. This guideline was prepared so that the borrower of the loan should not be so burdened with EMI that he cannot meet his daily expenses. Clear instructions have been given in the guideline to keep a balance between the loan, EMI and expenses of the person.
What the guideline says
According to this guideline of RBI, only 55 to 60 percent of the take home salary received every month by a salaried person can be used to pay EMI. He will use the remaining money to meet his daily needs. However, after the introduction of this guideline, banks fix only 50 percent of the take home salary as EMI on their side. The EMI amount was reduced as a precaution that the customer should not default on the loan to meet his day-to-day expenses.
How much can you get Loan
Take Home There is also a guideline of the Reserve Bank regarding getting the maximum loan against salary. According to this, a person can get a loan up to 60 times of his total take home salary. For example, if a person’s monthly take home salary is 50 thousand rupees, then he can get a maximum loan of 30 lakh rupees. Similarly, a person receiving a take home salary of Rs 1 lakh is eligible for a loan up to Rs 50 lakh.
However, this amount is in respect of secured loans like home loans. Home loan eligibility also depends on credit score, salary, age, location, current liabilities, etc. If there is more than one earning person in the family, then the loan amount may increase further, as it will be calculated on the basis of the total income of all the members. In case of personal loan, banks decide the loan amount based on the customer’s CIBIL score and risk appetite.
