The Holiday Affordability calculator computes the budget of your holiday you can afford today. Enter your maximum monthly savings, current savings, the interest rate on loan, and loan tenure. This calculator will tell you the budget for your holiday which you can cherish today.
The first step in Holiday buying journey is to know how much amount you can afford. Fintra has created a Holiday loan affordability calculator to help you understand your budget for your dream Holiday. Simply enter your monthly EMI, Current savings, Holiday loan interest rate and time period of the loan and you will get your amount
How Much worth of Holiday Can I Really Afford?
There is a general 28/36 Rule for Affordability. According to this rule, your Holiday Loan EMI should be less than 28% of your pre-tax income. Also, Total loans (Home, Car, personal, etc) should be less than 36% of your pre-tax income. Lenders definitely look at these parameters along with other factors such as Credit Score before issuing you a loan.
Multiple below given factors affect Holiday Loan affordability such as:
1. Income: Income is amongst the most crucial factor for your loan affordability. Having a stable income increases the chances and you will get a much better picture of what amount of loan you'll comfortably repay.
2. Age: Younger people have a higher probability of getting the large loan amount due to long repayment ability as compared to an older individual.
3. Income Sources: Having multiple income sources increases the chances of getting a loan.
4. Current EMIs: Having a large number of Existing loans and their EMIs will have a negative impact on Holiday affordability.
5. Credit score: A better credit rating makes the authorization process faster and easier and vice versa.