Loan Eligibility Calculator
LoanCalculate the maximum loan amount you are eligible for based on your monthly income, existing EMIs, interest rate, and FOIR. Works for home, car, and personal loans.
ā¹10,000
ā¹
Maximum Loan Eligibility
ā¹46.09 L
Maximum EMI You Can Afford
ā¹40,000
Total Interest Payable
ā¹49.91 L
Total Amount Payable
ā¹96.00 L
Corpus Breakdown
How your investment grows over time
Invested
ā¹0
Returns
ā¹49.91 L
ROI
0%
What is a Loan Eligibility?
A Loan Eligibility Calculator estimates the maximum loan amount you can obtain from a bank or NBFC based on your income, existing debt obligations, and the proposed loan terms. It uses the FOIR (Fixed Obligations to Income Ratio) ā the standard industry metric that limits how much of your monthly income can go toward EMIs.
In India, most lenders apply a FOIR of 40ā55% for salaried borrowers. A person earning ā¹1,00,000 per month can therefore service EMIs of up to ā¹50,000 at a 50% FOIR. Deducting existing EMIs (car loan, personal loan, credit card dues) leaves the available EMI capacity for the new loan. This available EMI is then reverse-calculated using the loan's interest rate and tenure to determine the maximum principal.
The formula is the reverse of the standard EMI formula: if you know the maximum affordable EMI, you can calculate the loan amount it corresponds to at a given rate and tenure.
This calculator works for home loans, car loans, personal loans, or any EMI-based lending product. For understanding your total home buying capacity including down payment, use the Home Affordability Calculator. To calculate EMIs on a specific loan amount, use the Home Loan EMI Calculator.
How to use this Loan Eligibility calculator
- Enter your Monthly Net Income ā take-home pay after all deductions.
- Enter Existing Monthly EMIs ā sum of all current loan repayments.
- Set the Interest Rate ā current market rate for the type of loan you want.
- Set the Loan Tenure ā in years. For home loans, 20ā25 years is common.
- Adjust the FOIR ā use 50% as a starting point; some lenders allow 55ā60% for higher incomes.
- The Maximum Loan Eligibility shows instantly.
- Try increasing the tenure to see how it improves eligibility; try reducing existing EMIs to see the impact.
Formula & Methodology
Step 1 ā Maximum Affordable EMI (FOIR rule)Max EMI = (Monthly Income Ć FOIR%) ā Existing EMIsStep 2 ā Reverse EMI Formula to find PrincipalMax Loan = Max EMI Ć [1 ā (1 + r)^-n] Ć· rWherer = annual interest rate Ć· 12,n = tenure in monthsWorked example: Income ā¹1,00,000, existing EMIs ā¹10,000, rate 8.5%, tenure 20 years, FOIR 50%. 1. Max EMI: ā¹1,00,000 Ć 50% ā ā¹10,000 = ā¹40,000 2. r = 8.5% Ć· 12 = 0.7083%/month; n = 240 months 3. Max loan = ā¹40,000 Ć [1 ā (1.007083)^ā240] Ć· 0.007083 = ā¹41.0 lakh FOIR reference norms used by Indian banks: | Income bracket | Typical FOIR | |---|---| | Up to ā¹25,000/month | 40ā45% | | ā¹25,000 ā ā¹50,000/month | 45ā50% | | ā¹50,000 ā ā¹1,00,000/month | 50ā55% | | Above ā¹1,00,000/month | 55ā60% |
Frequently Asked Questions
What is a Loan Eligibility Calculator?
A Loan Eligibility Calculator estimates the maximum loan amount a bank or NBFC will sanction based on your income, existing financial obligations, and the proposed loan terms. It uses the Fixed Obligations to Income Ratio (FOIR) ā the maximum proportion of income that lenders allow to go toward total EMIs. Most Indian lenders set this between 40% and 60% depending on income level and loan type.
What is FOIR and how does it affect loan eligibility?
FOIR (Fixed Obligations to Income Ratio) is the percentage of monthly income that a lender allows to go toward all fixed EMI obligations combined. For example, a 50% FOIR on ā¹1,00,000 monthly income means total EMIs cannot exceed ā¹50,000. If you already pay ā¹10,000 in EMIs, your available EMI capacity for a new loan is ā¹40,000. Higher FOIR typically applies for higher income borrowers; most banks cap it at 50% for salaried applicants.
How do existing EMIs affect my loan eligibility?
Existing EMIs directly reduce your available EMI capacity. A ā¹15,000 car EMI or ā¹20,000 personal loan EMI you're already paying reduces the maximum EMI a lender will allow for a new loan by exactly that amount. This significantly lowers the maximum loan amount. Paying off existing smaller loans before applying for a large home loan can substantially increase eligibility.
Do different loan types have different eligibility criteria?
Yes. Home loans typically allow longer tenures (up to 30 years) and higher LTV (loan-to-value up to 90%), maximising the loan amount. Personal loans have shorter tenures (1ā7 years) and higher interest rates, both of which reduce the eligible amount. Business loans and gold loans have different assessment criteria entirely. This calculator uses standard EMI-based eligibility applicable to most consumer loans.
Why does tenure affect loan eligibility?
A longer tenure reduces the EMI for a given loan amount, allowing lenders to sanction more. A ā¹50 lakh home loan at 8.5% over 20 years has an EMI of ā¹43,391; over 30 years it drops to ā¹38,446. The lower EMI means the same income can support a larger loan. However, longer tenure also means higher total interest paid over the life of the loan.
What income should I enter ā gross or net?
Enter your net monthly take-home income ā the amount credited to your bank account after all deductions (PF, TDS, professional tax). Most lenders use net income for FOIR calculations to ensure EMIs are affordable from actual cash flow. Some lenders, particularly for home loans, also consider rental income or spouse's income if they are co-applicants.
Can I increase my loan eligibility?
Yes. Adding a co-applicant (spouse or parent with income) increases the combined income and thus the eligible amount. Paying off existing EMIs removes those obligations from the FOIR calculation. A longer tenure lowers the EMI requirement for the same loan amount. Maintaining a good credit score (CIBIL above 750) improves approval chances and may result in a better interest rate, which in turn increases the eligible amount.
What CIBIL score is needed for a home loan?
Most Indian banks require a CIBIL score of at least 700ā750 for home loan approval, with the best interest rates offered at 750+. Scores below 650 typically result in rejection or much higher interest rates. This calculator does not factor in credit score ā it assumes you qualify from an income perspective. Check your CIBIL score separately before applying.
Is the eligibility amount guaranteed by the bank?
No. This calculator provides an estimate based on standard FOIR norms. Actual loan sanction depends on the specific lender's policies, your credit score, employment type (salaried vs self-employed), job stability, property valuation (for home loans), and the lender's underwriting assessment. Banks may sanction more or less than the calculator indicates.
How does the home loan eligibility differ from the Home Affordability Calculator?
The Loan Eligibility Calculator tells you the maximum loan a bank will lend you based on your income. The [Home Affordability Calculator](/home-affordability-calculator/) adds your down payment savings to the loan amount to tell you the total home price you can target. Use eligibility first to understand your loan ceiling, then affordability to determine your total purchasing power.