Calculation of available amount
Work process for credit assessment
The disposable amount is one of the most important figures in a loan matter. It tells whether the customer can realistically repay a new loan. Follow the same steps each time.
§Step by step
- 01Calculate total net income for the household
- 02Deduct fixed expenses (housing, transport, insurance, daily expenses)
- 03Deduct existing debt payments
- 04Put the new service on top and see if there is still a reasonable amount left over
- 05Compare with the bank's indicative minimum
Document the basis for your figures so a colleague can follow your calculation and your conclusion.