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

Rohit has a gross monthly income of Rs 1,00,000. His existing obligations are a car loan EMI of Rs 15,000 and a credit card minimum payment of Rs 5,000. A lender allows total obligations (including the new EMI) of up to 50% of gross income. What is the maximum new EMI Rohit can be sanctioned?

The maximum new EMI is Rs 30,000. The lender's ceiling on total obligations is 50% of Rs 1,00,000, which is Rs 50,000. Subtracting existing payments of Rs 20,000 (car EMI plus card minimum) leaves Rs 30,000 as the capacity for the new loan.

  1. ARs 50,000
  2. BRs 30,000Correct
  3. CRs 35,000
  4. DRs 20,000

Explanation

Maximum total obligations = 50% x 1,00,000 = Rs 50,000. Existing obligations = 15,000 + 5,000 = Rs 20,000. Permissible new EMI = 50,000 - 20,000 = Rs 30,000. Rs 50,000 ignores existing obligations; Rs 35,000 subtracts only the car EMI.

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