Case Study – Computing Eligible Loan Amount

Borrower Type – Salaried For a typical loan application there is a Borrower & Co Borrower the end goal is to determine the eligible loan amount. Financial product is of type Personal Loan. Following Income criteria are to be considered-

Income Head Type
Basic (1) DA (2) HRA (3) Other Allowances (4) Monthly Conveyance (5) Total Gross Salary (6) Provident Fund (7) Insurance (8) Income Tax (9) Other EMI’s (10) Other Deductions (11) Total Deductions (12) Add Other Incomes if any (13) Salary as per latest pay slip (14) Less: regular debit in B.S (15) Avg. Salary as per B.S (16) Less: regular debit in B.S (17) Gross Salary Current Month (18) Deductions Current Month (19) Gross Salary last 3 months (20) Deductions last 3 months (21) Gross Salary Current Month (22)

Formula
User Input User Input User Input User Input User Input Formula (Sum 1…5) User Input User Input User Input User Input User Input Formula (Sum 7... 11) User Input Formula (Sum 6…13) Formula (15 = 12) User Input User Input Formula (Sum 14) Formula (Sum 15) Formula (Sum 16) Formula (Sum 17) Formula (Sum 18)

Level
Business Business Business Business Business Business Business Business Business Business Business Business Business Business Business Business Business Customer Customer Customer Customer Loan

5 9% Loan Loan Loan Loan Loan Net Salary to be considered (28) Loan DSCR (29) Loan Rate of Interest (30) Tenor (31) EMI (32) Eligible Loan Amount (33) Loan 120 months Loan Formula Loan (PMT(30/$1200.45 if 28>=25K then 29=0.Deductions Current Month (23) Gross Salary Last 3 Months (24) Deductions Last 3 Months (25) Net Salary Current Month (26) Net Salary Last 3 Months (27) Formula (Sum 19) Formula (Sum 20) Formula (Sum 21) Formula (Sum 22 – 23) Formula (Sum 24 – 25) Formula (if diff between 26 and 27 is less than 25% of(Min(26.27) then A28 = Max(26.$100000) Formula (28*29/32*100000) Loan .27) ELSE A28 = Min(26.31.27) Formula (if 6K<=28<15K then 29=0.4) if 15K<=28<25K then 29=0.

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