How this is worked out
Your net credit is filled in from your pay at today’s DA, after NPS or PF and estimated income tax; change it to your payslip’s figure before loans. The new loan’s EMI is added to the EMIs you already pay and set against 35% of net credit. The most you can borrow is the loan whose EMI fits the room left, at the same rate and term.
The card part shows what carrying a balance costs at about 3.5% a month plus 18% GST. Chapter 12 of The Banker’s Money Book covers loans, cards and the conduct rules on borrowing.
Questions bankers ask
What is the 35% rule for bank staff loans?
Banks generally keep all your EMIs within about 35% of your net credit before loans, so that enough of your pay reaches your account each month. Check your bank’s staff loan circular for its exact limit.
How is EMI worked out?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly interest rate and n the number of months.
What does a credit card balance cost?
Card interest runs at about 3.5% a month, over 40% a year, and 18% GST is charged on the interest. Pay less than the full bill and interest runs on the whole bill from the date of purchase.
Are staff loan concessions taxable?
Yes. The interest concession on staff loans is a taxable perquisite, valued against SBI’s lending rate, in both regimes. It shows in your Form 16.
More free calculators
- Bank salary (12th BPS)Your payslip line by line
- Income tax: old vs newWhich regime saves you more in Tax Year 2026-27
- Retirement numberHow much you need saved at 60
- Next quarter’s DAWork out the next DA from three months’ index
- All 12 calculatorsPay, DA, tax, loans, retirement and wealth
Indicative figures for planning. They follow the 12th Bipartite Settlement and 9th Joint Note (8 March 2024), IBA’s DA circular of 2 November 2026 and the Income-tax Act, 2025, as on 12 November 2026. Your bank’s payslip, service regulations, circulars and Form 16 prevail. Bankers Pioneer Academy is independent; not affiliated with IBA, IIBF, the Reserve Bank of India or any bank. Nothing you type here leaves your device.