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What is the maximum EMI I can service?
The EMI of your loans will be determined on the basis of the tenure of repayment you select.
Banks follow a general policy of not considering more than 35-40 % of your net pay as EMI, inclusive of your repayment obligations on other loans, if any.
The basic criteria for deciding EMI is based on the percentage of the salary of an individual.
Consider these two cases:
Case I:
Mr A earns ₹20,000 per month. If banks take away 40 % of his salary towards EMI he will be left with only ₹12,000.
Case II:
Mr B earns ₹50,000 per month. If he sets aside 40 % of his salary, he will still have ₹30,000 to meet his monthly expenses.
