Score: 4.1/5 (60 votes)

Financial experts say your car-related expenses **shouldn't exceed 20% of your monthly take-home pay**. So, let's say you bring home about $2,500 each month. The total amount you should spend on your car — including loan payment, gas, insurance and maintenance — is right around $500.

Expert estimates range broadly. Greg McBride, a senior vice president, chief financial analyst at Bankrate.com, advises that a car payment should equal **no more than 15 percent of your pretax monthly pay**. That means that if you make $50,000 a year, your monthly car payment could be as much as $625.

To find out how much car you can afford with this 36% rule, simply multiply your family's income by 0.36. So if you earn $100,000, for example, you could afford to take out a car loan of **up to $36,000** — assuming you don't have any other debt.

If you make $75,000 per year, your total loan payments shouldn't exceed **$2,250 per month**. The 20/4/10 rule: Put down 20% on a car, finance the car for no more than 4 years, and keep your car payment less than or equal to 10% of your salary.

It's typically recommended that you buy a car worth no more than 35% of your gross annual income— so if you make $60k per year, you can afford a new car that is worth **$21,000 or less**.

Whether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than **35% of your gross annual income**. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the car price should fall below $21,000.

It is advised to customers that they restrict their car loans to **not more than 20 percent of their monthly income**. For example, if you make Rs. 40,000 per month, your monthly car loan EMI should not exceed Rs. 8,000.

In case if you are speculating about how much personal loan can I get on a 50,000 salary, you can expect a loan amount of **13.50 lakhs** to be sanctioned by Fullerton India. However, if you are deliberating on the loan amount with how much loan I can get on a 60,000 salary, the approved amount should be close to Rs.

With the salary of Rs. 20,000 per month, you may become eligible for a maximum loan amount of **Rs.** **3 Lakhs**. In case you do not qualify for a new car loan, you can also check your eligibility for a pre-owned car loan.

How much personal loan can I get on a ₹25000 salary? According to the Multiplier method, on a salary of ₹25000, you can get a loan of **₹6.75 lakhs for 5 years**. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹5.89 lakhs.

While it depends on factors like your credit score, loan terms, down payment and any potential trade-in value, you may find that a vehicle in the **$20,000 to $35,000 range will fit your budget**.

The frugal rule: 10% of your income

For many people, I think that will be between 10–15% of their income. So if you earn $25,000 a year, that's going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that's a used car for around **$10,000 or $12,000**.

**The average new car payment in America has crept above the $500 per month mark for the fist time, settling in at $503**, according to a recent study by Experian. And if that weren't bad enough, the average length of a car loan now stands at 68 months.

Illustration- Mr A who is 25 years old has a net income of ₹ 18,000. He wants to take a personal loan of ₹ 1 Lakh for 60 months. Yes Bank allows a maximum FOIR of 0.45. Based on the information provided by the applicant the maximum amount he is eligible for is **₹ 3.77 Lakh**.

A: A salary of Rs. 15,000 generally falls in the category of a low-income borrower group. So, an instant personal loan app with a maximum approval amount of **1.5 Lakhs** can be availed by the borrower with a starting salary of Rs. 15,000.

- Monthly Income. 50,000. 10000. 10L. Minimum value should be 10,000.
- Tenure in years. Years. 1 Year. 10 Years. Minimum value should 12M.
- Interest rate in % 1% 20% Minimum value should 1%
- Other EMIs (Monthly) 10L. Minimum value should be 50,000.

Lenders want you to list your **gross income** on your auto loan application. So, while your net income—the amount going into your pocket—is what you are more familiar with, it's what you are paid before taxes and deductions that lenders want to see.

- Minimum 21 years of age.
- Maximum 60 years of age at maturity (conditions apply)
- Minimum Net Annual Salary of Rs. 2,40,000 p.a. for all approved car models.
- Income eligibility based on latest salary slip and Form 16.
- Minimum of 1 year continuous employment.

On an annual income of $80,000 after-tax, a lender may offer you a mortgage of **$1.75 million**. This assumes that the applicant's credit score is at least average. It also assumes that there are no outstanding debts owed.