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