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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Debt Management and Loans

Rohan has a gross monthly income of Rs 1,00,000. His existing EMIs are: home loan Rs 25,000, car loan Rs 10,000 and personal loan Rs 5,000. He plans to take a new loan with an EMI of Rs 8,000. What will be his EMI-to-income ratio after the new loan?

The ratio is 48%. Existing EMIs total Rs 40,000, and the new EMI of Rs 8,000 raises the total obligation to Rs 48,000, which divided by gross monthly income of Rs 1,00,000 gives 48 percent. Ignoring the new EMI would wrongly give 40 percent.

  1. A40%
  2. B48%Correct
  3. C35%
  4. D32%

Explanation

Existing EMIs = 25,000 + 10,000 + 5,000 = Rs 40,000. Adding the new EMI gives Rs 48,000. Ratio = 48,000 / 1,00,000 = 48%. The 40% option ignores the new loan's EMI.

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