Loan Eligibility Calculator
Find out the maximum loan amount you are eligible for based on your monthly income, existing EMIs, interest rate, and tenure.
Your Financial Details
Most banks use 40–50% FOIR
Maximum Eligible Loan
₹46.09 Lakh
Available EMI: ₹40,000/month
Total Interest
₹49.91 Lakh
Total Payment
₹96 Lakh
How It Works
Banks use a Fixed Obligations to Income Ratio (FOIR) — typically 40–50% of net monthly income — to decide the maximum EMI you can afford. Subtracting your existing EMIs gives the EMI available for a new loan. The calculator then reverse-computes the loan amount from that EMI at your chosen rate and tenure.
Formula
Max EMI = (Net Income × FOIR) − Existing EMIs; Eligible Loan = Max EMI × [(1+r)^n − 1] / [r × (1+r)^n]
Frequently Asked Questions
What is FOIR and how does it affect loan eligibility?
FOIR (Fixed Obligations to Income Ratio) is the percentage of your net monthly income that banks allow for all EMI obligations. Most banks cap it at 40–50%. If your income is ₹1L and FOIR is 50%, max total EMIs = ₹50,000. Subtract existing EMIs to get the EMI available for a new loan.
How can I increase my loan eligibility?
You can increase eligibility by: (1) adding a co-applicant with income, (2) closing existing loans to reduce FOIR, (3) choosing a longer tenure to reduce the required EMI, (4) increasing your income through salary revision or additional income sources, or (5) improving your credit score to get a lower interest rate.
Does my credit score affect loan eligibility?
Yes. A CIBIL score above 750 qualifies you for lower interest rates, which directly increases the loan amount you can get for the same EMI. A low score may result in rejection or a higher rate, reducing your eligible amount.
Is loan eligibility the same as loan approval?
No. Eligibility is an estimate based on income and EMI capacity. Final approval also depends on your credit score, employment stability, property valuation (for home loans), and the bank's internal policies.