The amount of loan you can get on a 1 lakh salary depends on several factors such as your credit score, employment history, age, loan tenure, and the lender’s policies.
Typically, lenders use a formula called the debt-to-income (DTI) ratio to determine the maximum loan amount you can qualify for. The DTI ratio is the percentage of your monthly income that goes towards paying off debts. Lenders usually consider a DTI ratio of 40% or lower to be a good indicator of your ability to repay the loan.
Assuming a DTI ratio of 40%, here’s an estimate of the maximum loan amount you may be eligible for, based on your annual income of 1 lakh:
Loan amount = (1 lakh x 40%) x 12 months x loan tenure
For example, if you have a loan tenure of 5 years:
Loan amount = (1 lakh x 40%) x 12 months x 5 years Loan amount = 48,000 x 5 Loan amount = 2,40,000
Therefore, based on this calculation, you may be eligible for a loan amount of up to 2.4 lakhs. However, please note that this is just an estimate, and your actual loan amount may vary depending on your individual circumstances and the lender’s policies. It’s always a good idea to check with the lender directly to determine your eligibility and get a more accurate estimate.
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