NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Debt Management and Loans
Meera Iyer earns a gross monthly income of Rs 1,00,000. Her existing EMIs total Rs 15,000 and a new car loan EMI of Rs 10,000 is proposed. What is her EMI-to-income ratio after the new loan?
The ratio is 25%. Total EMIs after the new loan are Rs 25,000 (Rs 15,000 existing plus Rs 10,000 new), divided by gross monthly income of Rs 1,00,000, giving one quarter of income going to debt servicing.
- A10%
- B15%
- C25%Correct
- D35%
Explanation
Total EMIs = 15,000 + 10,000 = Rs 25,000. Ratio = 25,000 / 1,00,000 = 25%. 15% ignores the new loan, and 10% counts only the new loan.
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