Instalment to Income Ratio (IIR)

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Instalment to income ratio (IIR)

In case of IIR, a bank calculates the loan eligibility as a percentage. The percentage denotes the portion of the monthly instalment of the home loan taken. The percentage may vary from 33.33 to 40 percent ratio.

For example, assume the IIR is 35 percent and the gross income is Rs 2 lakhs per month of a prospective borrower. According to the IIR ratio, this individual is eligible for a loan where the instalment does not exceed Rs 35,000 per month (35 percent multiplied by gross monthly income).

The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014.

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