Loan Eligibility Calculator
Check how much Home, Personal, or Car loan you can get based on your income, obligations, and FOIR.
Loan Eligibility Calculator
Include current EMIs, rent (if paying), etc.
Usually 40-50%
Eligible Loan Amount
₹0
Max Monthly EMI
₹0
Total Interest Payable
₹0
How Loan Eligibility is Calculated
Banks use the FOIR (Fixed Obligations to Income Ratio) method to determine your loan eligibility. They ensure that your total monthly obligations (including the proposed EMI) do not exceed a certain percentage (FOIR) of your net monthly income.
Eligibility Calculation Formula
1. Max EMI = (Net Income × FOIR%) - Existing Obligations
2. Eligible Loan = Max EMI × [(1+r)^n - 1] / [r × (1+r)^n]
- FOIR = Fixed Obligations to Income Ratio (typically 40% - 55%)
- r = Monthly Interest Rate
- n = Loan Tenure in Months
Example Calculation
For a ₹75,000 monthly income with ₹10,000 existing obligations at 50% FOIR and 9% p.a. for 20 years:
• Max Permissible EMI = (75,000 × 50%) - 10,000 = ₹27,500
• At 9% for 20 yrs, Loan for ₹27,500 EMI ≈ ₹30,47,918
→ Eligible Loan Amount: ₹30.48 Lakh
Tips to Increase Loan Eligibility
- 1 Add a Co-Applicant: Adding a spouse or parent as a co-applicant combines both incomes, significantly increasing eligibility.
- 2 Increase Tenure: A longer tenure reduces the EMI, allowing you to fit within the FOIR limit and get a higher loan amount.
- 3 Clear Existing Debts: Closing small outstanding loans or credit card balances reduces your obligations, raising the maximum EMI capacity.
- 4 Improve CIBIL Score: A score above 750 builds trust with the bank, sometimes allowing a higher FOIR limit or lower interest rate.