🏠 Loan Eligibility Calculator
Estimate the maximum loan amount you're eligible for based on your income and obligations.
Frequently Asked Questions
How do I use the Loan Eligibility Calculator?
Enter your Monthly Net Income, any Existing Monthly EMIs/Obligations, your FOIR (maximum % of income allowed for all EMIs), the Interest Rate and the Loan Tenure in years, then click Check Eligibility to see your maximum eligible loan amount, available monthly EMI, total interest payable, and how eligibility changes across different tenures.
What is FOIR and how does it affect loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that banks allow you to spend on all loan EMIs combined, including the new loan. Most lenders cap FOIR between 40% and 60% depending on your income level — higher earners are often allowed a higher FOIR. A higher FOIR means more available EMI capacity and therefore a higher eligible loan amount.
How do existing EMIs affect how much I can borrow?
Your existing EMIs (car loans, personal loans, credit card dues, etc.) are subtracted from your FOIR-based EMI capacity before calculating eligibility for the new loan. The more you already pay towards other loans, the less capacity remains for a new one — paying off existing debt before applying can significantly increase your eligible loan amount.
Why does a longer tenure increase my eligible loan amount?
For the same monthly EMI capacity, a longer tenure spreads repayment over more months, so each EMI covers a smaller portion of principal — allowing you to borrow more for the same EMI. However, a longer tenure also means significantly more total interest paid over the life of the loan, as shown in the comparison table.
Is this the exact amount a bank will approve?
No. This is an income-based estimate using a simplified FOIR formula. Actual bank approval also depends on your credit score (CIBIL), employment stability, age, the property's market value for secured loans like home loans (loan-to-value ratio), co-applicant income, and the specific lender's internal policies. Use this as a starting point, not a guarantee.
How is the eligible loan amount calculated from the EMI?
Once your available monthly EMI is known, we use the standard reducing-balance EMI formula in reverse: Loan Amount = EMI × [(1 − (1 + r)^−n) / r], where r is the monthly interest rate and n is the tenure in months. This is the same formula our EMI Calculator uses in the forward direction.
Why do I have less than 50% FOIR available even though I picked the 50% preset?
The FOIR preset (40%, 50% or 60%) sets the maximum share of income allowed for ALL EMIs combined, not just the new loan. The calculator first computes 50% of your income, then subtracts your existing EMIs to arrive at the available monthly EMI for the new loan — so the higher your existing obligations, the smaller the remaining slice, even at the same FOIR percentage.
Should self-employed applicants choose a lower FOIR preset?
Yes. Lenders generally apply stricter FOIR limits (often 40–45%) to self-employed or variable-income applicants to account for income fluctuation, compared to 50–60% for salaried employees with stable income. If your income varies month to month, use the 40% preset for a more realistic eligibility estimate rather than the default 50%.