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How much should I borrow for my Home or Car?
It’s always better to ask yourself “How much should I borrow?” instead of “How much could I borrow?” Rather than focusing on the largest amount of loan you could get from Home loan, or Auto loan. You should think about the amount that could comfortably fit your budget.
Working out a monthly household budget (one that includes any additional expenses that come with homeownership) can tell you what you should borrow. This approach helps you find an amount that comfortably fits your budget, rather than stretching your budget to fit the loan.
For example: If your monthly income is Tk 50,000.00 and you expense is Tk 42,000.00, you would have Tk 8,000.00 as your disposable income. You should not take a loan for which you would have to pay an installment higher than your disposable income. You might be in trouble to cope up with the pressure, if your installments are higher.