Loan Eligibility Calculator
Check how much loan you are eligible for based on your income, existing EMIs, interest rate, and tenure. This tool estimates maximum EMI and loan amount using standard banking FOIR rules. Helpful for planning home, personal, and car loans.
How Loan Eligibility Is Calculated?
Banks calculate loan eligibility based on income, FOIR ratio, interest rate, and tenure.
Max EMI = Income × FOIR – Existing EMIs
- FOIR (Fixed Obligation Income Ratio) is usually 40–50%.
- Higher income → higher eligibility.
- Lower interest rate → higher eligibility.
- Longer tenure reduces EMI and increases eligibility.
FAQ
How do banks calculate loan eligibility based on income?
Banks primarily evaluate your monthly income, FOIR (Fixed Obligation to Income Ratio), existing EMIs, and credit profile. Typically, up to 40–50% of your net income can go toward EMIs. The calculator estimates how much loan you qualify for by applying the same criteria used by financial institutions.
What is FOIR and why is it important for loan approval?
FOIR represents the portion of your income that is used to pay fixed obligations such as rent and EMIs. A lower FOIR indicates better repayment capacity, improving loan eligibility. Most banks prefer FOIR to be below 50% for quick loan approval and better interest rates.
How does credit score affect loan eligibility?
A higher credit score (700+) increases your chances of approval and may also qualify you for lower interest rates. Poor credit history signals higher risk to lenders, which can lead to lower eligible loan amounts, higher interest rates, or rejection.
Can increasing the loan tenure improve eligibility?
Yes, increasing the loan tenure reduces your EMI, which in turn lowers your FOIR. This improves your repayment capacity on paper and increases the total eligible loan amount. However, longer tenures also mean higher total interest paid.
Do existing EMIs reduce my loan eligibility?
Yes. Existing EMIs directly reduce your disposable income and therefore lower your eligible loan amount. Banks subtract ongoing EMI commitments from your income before calculating your maximum allowable EMI for new loans.