Loan Eligibility Calculator

What is Loan Eligibility Calculator?

The Loan Eligibility Calculator estimates the maximum loan amount banks are likely to approve based on your income, existing EMI obligations, and the target interest rate. It uses the FOIR (Fixed Obligations to Income Ratio) method used by lenders.

How to Check Loan Eligibility

1. Enter your net monthly income (post-tax)
2. Enter your existing monthly EMI obligations
3. Enter the loan interest rate and tenure
4. Click Calculate to see your maximum eligible loan amount and maximum EMI capacity

How Loan Eligibility Calculator is Calculated

Max EMI = (Net Monthly Income − Existing EMIs) × FOIR (typically 50–60%). Max Loan = Max EMI × [(1+r)ⁿ − 1] / [r × (1+r)ⁿ], where r = monthly rate, n = tenure in months.

Worked Example

Monthly income ₹1,00,000, existing EMIs ₹15,000, FOIR 50%: Max EMI = (1,00,000 − 15,000) × 50% = ₹42,500. At 9% for 20 years: Max loan ≈ ₹47,27,000.

Common Use Cases

• Pre-qualifying for a home loan
• Understanding personal loan limits
• Planning affordability before car shopping
• Optimising existing EMIs for new loan eligibility

Common Mistakes to Avoid

• Not disclosing existing EMIs to the calculator — banks check your CIBIL report and will see all existing loans. Undisclosed EMIs reduce actual eligibility.
• Thinking a higher salary automatically means higher eligibility — FOIR considers total obligations. High existing EMIs drastically reduce approved loan amount.
• Ignoring the impact of credit score — a score below 700 can reduce loan eligibility by 10–20% or increase the interest rate by 0.5–1%.
• Not considering co-applicant income — adding a working spouse or family member can significantly increase your eligible loan amount.

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