Related Loan Calculators
Loan Eligibility Calculator
Planning to apply for a loan? Before visiting a bank, the smartest step is knowing "How much loan can I actually get?" This Loan Eligibility Calculator answers that instantly — based on your monthly income, existing EMI commitments, desired interest rate, and loan tenure.
Instead of guessing or facing a rejection that dents your credit score, get a clear picture of your borrowing capacity in seconds and plan your finances confidently.
How Loan Eligibility Is Calculated
Banks use the Fixed Obligation to Income Ratio (FOIR) principle: your total monthly EMI obligations should not exceed 40%–50% of your gross monthly income. The calculator works as follows:
- Total EMI capacity = Monthly income × Income usage % (default 40%)
- Available new EMI = Total capacity − Existing EMIs
- Eligible loan amount = Reverse-calculated from available EMI using the standard EMI formula
The "Eligibility Across Tenures" chart shows how your eligible amount changes if you choose a longer or shorter repayment period.
Tips to Improve Your Loan Eligibility
Reduce Existing Debts First
Every existing EMI directly reduces your available capacity. Clearing a ₹5,000/month EMI before applying can increase your eligible loan by several lakhs, depending on the rate and tenure.
Maintain a Good Credit Score
A CIBIL score above 750 qualifies you for lower interest rates and higher loan amounts. Banks often reject applicants with scores below 650. Pay all EMIs and credit card bills on time.
Apply With a Co-Applicant
Adding a co-applicant (spouse, parent, or earning family member) combines both incomes, effectively doubling the eligible loan amount in many cases.
Choose a Longer Tenure
A longer tenure reduces the per-month EMI requirement, which increases the eligible loan amount. Use the tenure chart in the calculator to see this effect clearly.
Negotiate the Interest Rate
A lower interest rate increases your eligibility. Even a 1% reduction can meaningfully raise the loan amount you qualify for at the same EMI.
Frequently Asked Questions
The calculator uses the FOIR (Fixed Obligation to Income Ratio) principle. It first calculates your total EMI capacity (income × usage %), subtracts your existing EMIs, and then reverse-calculates the maximum loan amount that produces an EMI equal to the remaining capacity — using the standard reducing-balance EMI formula at your specified rate and tenure.
Most banks apply a 40%–50% FOIR for salaried applicants — meaning total EMIs (including the new loan) should not exceed 40–50% of gross monthly income. Our calculator defaults to 40%, which is conservative and safe. You can increase it to 50% to see the maximum possible eligibility, but keeping it at 40% ensures comfortable repayment with room for other expenses.
No — this is an estimate based on the income and EMI ratio principle. Banks also consider your credit score, age, employment type, employer profile, existing liabilities not entered here, and the property/asset valuation (for secured loans). The actual approved amount may be higher or lower. Use this tool to understand your approximate range before applying.
A longer tenure reduces the monthly EMI for the same loan amount. Since eligibility is constrained by the maximum monthly EMI you can afford, a lower required EMI means a larger loan can fit within your capacity. For example, a ₹20,000/month available EMI supports a larger loan over 20 years than over 5 years at the same rate.
The fastest ways: (1) Close or pre-pay existing loans to reduce FOIR, (2) Add a co-applicant with income, (3) Improve your CIBIL score to qualify for a lower interest rate, (4) Opt for a longer tenure to reduce per-month EMI requirement. Combination of these can significantly raise your eligible amount.
