INCOME TAX26 Sept 2026
Debt-to-income ratio explained: How lenders assess your repayment capacity | Mint
Lenders now weigh your debt-to-income ratio (DTI) alongside your credit score. It compares your monthly loan payments with your gross monthly income, showing how much is already committed. Credit bureaus say many lenders prefer a DTI of 40 to 43 percent, though this varies by lender and loan type. A high DTI does not always mean rejection, so check yours before applying for a fresh loan.
Key Statutory Highlights
- Debt-to-income ratio compares your total monthly debt payments with your gross monthly income to show your existing debt burden.
- According to the credit bureau CRIF High Mark, many lenders generally prefer a DTI of 40 to 43 percent, though the threshold varies by lender, loan type and borrower profile.
- A high DTI does not automatically mean your loan will be rejected, as lenders also consider income stability, employment, repayment history, past defaults and your credit profile.
Actionable Advice for Taxpayers / Founders:Work out your debt-to-income ratio before you apply for a fresh loan, and try to bring down monthly debt payments first. Also keep your credit score and repayment record healthy, since lenders look at both together. This improves your chances, but approval is never guaranteed.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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