Calculate Your Loan Capacity

A. What is the maximum repayment a borrower can make?

The maximum repayment a borrower can make is stated by law as 1/3 of the total salary. In the case of a corporate loan it might be different that it could be decided based on repayment capacity, collaterals, and other reasons.

B. Calculating the Capacity

Suppose that the total income / salary of an individual or a business is 36,000. Thus, the maximum repayment amount allowed in this case is 36,000 / 3 i.e. 12,000. This calculation assumes that a borrower has not unsettled previous loans. Once the repayment is estimated, we can use the calculator to determine the maximum loan amout applicable for a repayment of 12,000.

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