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    Finance of Loan and Emi Problem

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    Puducheri Yashwanth Kumar
    The household's annual income is Rs. 120,000. They are eligible for a loan of Rs. 3,50,000 from the housing finance company at an interest rate of 11.5% and maximum repayment period of 15 years. The monthly installment (EMI) is calculated to be Rs. 4,089. If the household wants the repayment capacity to be around 40% of monthly income, then the required monthly income is calculated to be Rs. 30,000.

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    Finance of Loan and Emi Problem

    Uploaded by

    Puducheri Yashwanth Kumar
    45 views6 pages
    The household's annual income is Rs. 120,000. They are eligible for a loan of Rs. 3,50,000 from the housing finance company at an interest rate of 11.5% and maximum repayment period of 15 years. The monthly installment (EMI) is calculated to be Rs. 4,089. If the household wants the repayment capacity to be around 40% of monthly income, then the required monthly income is calculated to be Rs. 30,000.

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    loan and emi problem

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    Finance of loan and emi problem

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    The household's annual income is Rs. 120,000. They are eligible for a loan of Rs. 3,50,000 from the housing finance company at an interest rate of 11.5% and maximum repayment period of 15 years. The monthly installment (EMI) is calculated to be Rs. 4,089. If the household wants the repayment capacity to be around 40% of monthly income, then the required monthly income is calculated to be Rs. 30,000.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    45 views6 pages

    Finance of Loan and Emi Problem

    Uploaded by

    Puducheri Yashwanth Kumar
    The household's annual income is Rs. 120,000. They are eligible for a loan of Rs. 3,50,000 from the housing finance company at an interest rate of 11.5% and maximum repayment period of 15 years. The monthly installment (EMI) is calculated to be Rs. 4,089. If the household wants the repayment capacity to be around 40% of monthly income, then the required monthly income is calculated to be Rs. 30,000.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 6

    FINANCE ASSIGNMENT-

    II
    SUBMITTED BY:-
    ANKIT KUMAR
    PRIYANKA SAGAR
    M.PLAN, HOUSING
    II
    nd
    -SEM
    SCHOOL OF PLANNING AND ARCHITECTURE,
    DELHI
    Problem :- A Households annual income is Rs. 1,20,000/-. To
    construct a house, the household approached a Housin !inance
    "ompan# $or a loan. As per the H!"s polic#, the household can
    et ma%imum o$ &' times o$ its monthl# income as loan. The
    applicable interest $or chared b# the H!" is 10.'0( $or a loan
    upto Rs. & la)hs and 11.'0( $or a loan abo*e Rs. & la)hs and
    upto Rs. ' la)hs and 12.00( abo*e Rs. ' la)hs. The ma%imum
    repa#ment period is 1' #ears.
    +a, Please calculate the eliible loan amount $or the household.
    +b, "alculate the -./ o$ the household $or the eliible loan
    amount, eliible interest rate and ma%imum repa#ment period.
    0olution:-
    a,
    As per given:
    A112A3 /1"4.- 4! H420-H435 Rs. 12, 0,000
    .A6/.2. 34A1:- 35 X 10000 =3,50,000
    FR A !AN F 3 !A"# 10.5$ INTEREST
    FR A !AN A%&E Rs. 3 !A"# 11.50$ INTEREST
    AN' ()T Rs 5 !A"#
    FR A !AN A%&E Rs 5 !A"# 12.0$ INTERSET
    THE MAXIMUM REPAYMENT 15 YEARS
    PERIOD

    Sin*e +e ,n-+ ./0. ./e /-1se/-23 *0n ge. 0 2-0n 35 .i4es -5 /is 4-n./26
    in*-4e i.e. 3.5 20,/ 0n3 7e6-n3 ./is 04-1n. /e *-123n8. 055-r3 ./e 4-n./26
    ins.024en.s ./ere5-re ./e /-1se/-23 *0n 0pp26 5-r 0 2-0n 07-ve Rs 3 20,/ 0. 0n
    in.eres. r0.e -5 11.50$
    T/ere5-re ./e e2igi72e 2-0n 04-1n. 5-r /-1se/-23 is 3, 50,000
    0olution:-
    b,. "alculate the -./ o$ the household $or the eliible loan amount,
    eliible interest rate and ma%imum repa#ment period.
    T/e 5-r4120 .- *02*120.e EMI:
    9/ere,
    - is EMI
    P is )rin*ip02 !-0n A4-1n.
    r is r0.e -5 in.eres. *02*120.e3 -n 4-n./26 70sis. :i.e., r = R0.e -5 Ann102
    in.eres.;12;100. I5 r0.e -5 in.eres. is 10.5$ per 0nn14, ./en r =
    10.5;12;100=0.00<=5>
    n is 2-0n .er4 ; .en1re ; 31r0.i-n in n147er -5 4-n./s
    M0?i414 Rep064en. peri-3 15 @e0rs
    E2igi72e in.eres. r0.e 11.50 $
    Sin*e ./e 2-0n 04-1n. 2ies 7e.+een 3, 50,000
    E= 3, 50,000 X 11.5;2;100 :1A11.50;12;100>B15

    ::1A11.50;12;100>B15 -1>
    Therefre,
    Mn!h"# In$!%"&en!$ R$. '()*.((
    T!%" In!ere$! P%#%+"e: - R$. ,, )5,*-(
    T!%" P%#&en! .Pr/n0/1%" 2 In!ere$!3:- R$. 4, ,5,*-(
    S*/e312e s/-+ing EMI p064en.s s.0r.ing 5r-4 :- Apri2 201C
    Loan Amount (Rs) 3,50,000
    Loan Term (years) 15
    Payment per year (urat!on) 12
    Rate o" !nterest # 11.50
    $ont%&y !nsta&ments Rs 4089.00
    BREA5-UP O6 YEARLY INSTALLMENTS 6OR 15YEARS
    b, 7hat should be his monthl# income, i$ the repa#ment capacit# should
    be around &0( o$ his monthl# income.
    0olution:-
    T/e 5-r4120 .- *02*120.e 4-n./26 in*-4e:-
    30$ -5 4-n./26 in*-4e = rep064en. *0p0*i.6
    30;100:?>= R$. *(((
    X= :*(((7 1((38,(
    X= R$. 30,000
    #is 4-n./26 in*-4e= R$. 30,000

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