How is loan eligibility calculated?

Loan eligibility is calculated based on your net monthly income minus existing EMIs and expenses. Banks typically allow 50-60% of your net income as EMI. The eligible loan amount is derived using the EMI formula in reverse.

What factors affect loan eligibility?

Key factors include monthly income, existing EMIs, monthly expenses, interest rate, loan tenure, and the lender's FOIR (Fixed Obligation to Income Ratio) limit.

FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that can go towards loan repayments. Most banks allow 40-60% FOIR depending on income level and loan type.

Loan Eligibility Calculator — Check How Much Loan You Can Get

Income & Loan Details

Your Eligibility

Maximum Loan Amount 0

Maximum Affordable EMI 0

Total Interest Payable 0

Total Payment 0

Available Monthly Surplus 0

Amortisation Schedule

Year	Opening Balance	EMI Paid	Principal Paid	Interest Paid	Closing Balance

What is a Loan Eligibility Calculator?

A loan eligibility calculator helps you estimate the maximum loan amount you can borrow based on your monthly income, existing financial obligations, interest rate, and loan tenure. It uses the FOIR (Fixed Obligation to Income Ratio) method that banks use to assess borrowing capacity.

How Loan Eligibility is Calculated

Available EMI = (Monthly Income × FOIR%) − Existing EMIs

Eligible Loan = EMI × [(1 + r)ⁿ − 1] / [r × (1 + r)ⁿ]

Where:

FOIR = Fixed Obligation to Income Ratio (typically 40–60%)
r = Monthly interest rate (Annual Rate / 12 / 100)
n = Total months (Years × 12)

Tips to Improve Loan Eligibility

Clear Existing Debts: Pay off outstanding loans and credit card dues to reduce existing EMI obligations.
Increase Down Payment: A larger down payment reduces the loan amount needed.
Choose Longer Tenure: Longer tenure reduces EMI, allowing you to qualify for a higher loan amount.
Add a Co-borrower: Adding a working spouse or family member can increase combined income for eligibility.
Maintain Good Credit Score: A higher credit score (750+) can help you get better rates and higher loan amounts.

How to Use This Calculator

Monthly Income: Enter your net monthly income (take-home salary).
Existing EMIs: Enter the total of all current EMIs you are paying.
Monthly Expenses: Enter your regular monthly expenses.
Interest Rate: Enter the expected loan interest rate.
Loan Tenure: Choose the desired repayment period.
FOIR Limit: Set the maximum percentage of income the bank allows for EMIs (default 50%).

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