Income requirement for bank loans

@ sambasiva

Banks generally ask for 3 years ITRs and they just check your loan repayment capability by income shown by you in the ITRs. Following is a example or criteria which many banks consider while sanctioning loan:-
suppose you earn Rs. 10000/- P.M
they deduct Rs. 4000/- for your household usage and consider other loans and EMIs on your current purchases etc.suppose Rs.2000/-

Now they get the balance of Rs.4000/-

continue....

now if you want loan for 5 years they will calculate your annual repayment I.e, Rs.48000/-

and total amount which can be paid comes to Rs.48000*5= Rs.240000/- and it is maximum loan they can sanction to you.

It is just ONE criteria and not exhaustive criteria there may be different calculations by banks. and the above figure is exclusive of interest they consider it too.

They consider the agricultural income and income form other sources if they are of regular nature otherwise ignore that and only consider your fix and regular incomes.

Thank  You Somuch Suryaa.