What methods are used by lenders to determine loan amount to be sanctioned?
Lenders typically rely on the debt-to-income ratio or Fixed Obligation Income Ratio (FOIR), loan-to-value ratio, and installment income ratio (IIR) when determining your eligibility for a higher loan amount, particularly with instant personal loans. Besides, lenders also use the multiplier method to assess and sanction loan amounts based on the borrower’s creditworthiness, loan-to-value ratio, financial … Read more