GlossaryCredit
Borrowing capacity
Short definition
Maximum amount person can borrow based on income, expenses, and authorized debt ratio.
Detailed definition
Borrowing capacity is maximum amount bank will grant based on financial situation. Calculated per 33% rule: total monthly payment (all cumulated credits) must not exceed 33-40% of net monthly income. Depends on: stable income, professional situation, personal contribution, existing credits, age. For civil servants, rate can rise to 40%.
Concrete example
Net income 15,000 MAD/month, 33% rule = 4,950 MAD max monthly payment. Over 25 years at 4.5%, borrowing capacity ≈ 890,000 MAD (without ongoing credits).
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