Breakdown
How it works
Banks cap total monthly repayments at 40–60% of net income (50% by law in the UAE) and often cap the loan at a multiple of monthly salary (20× in the UAE). The lower of the two limits applies; a longer tenure raises the ratio-based limit but not the multiple.
Formula
Worked example
Income 15,000, EMIs 2,000, 50% DBR, 8% over 4 years: capacity 5,500 → 225,000 by ratio; 20× = 300,000 → eligible for about 225,000.
Frequently asked questions
How do I increase eligibility?
Clear or consolidate existing EMIs, reduce credit card limits (banks count 5% of the limit), add a co-applicant, or extend the tenure.
Does my credit score matter?
Yes — AECB (UAE), CIBIL (India) or Experian (UK) scores set the rate and whether you are approved, but the amount is driven by income and ratios.
Is the salary transfer required?
UAE banks offer better rates and higher multiples with salary transfer; non-salary-transfer loans are capped lower and priced higher.