NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Debt Management and Loans
Rahul Mehta has a gross monthly income of Rs 1,00,000. His existing obligations are a car loan EMI of Rs 12,000 and a personal loan EMI of Rs 8,000. He proposes a home loan with an EMI of Rs 30,000. What is his total EMI-to-income ratio after the home loan?
The ratio is 50%. Total monthly EMIs are Rs 12,000 plus Rs 8,000 plus Rs 30,000, which equals Rs 50,000, and dividing by the gross monthly income of Rs 1,00,000 gives 50 per cent.
- A30%
- B42%
- C50%Correct
- D20%
Explanation
Total EMIs = 12,000 + 8,000 + 30,000 = Rs 50,000. Ratio = 50,000 / 1,00,000 = 50%. Option 30% counts only the new EMI, and 20% counts only the existing EMIs.
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