Loan Eligibility Calculator

How lenders decide your loan amount

Lenders do not decide your loan amount from your salary directly. They first work out how much EMI your income can absorb, then reverse-engineer the largest loan that fits that EMI at the offered rate and tenure. This calculator follows the same two steps.

FOIR is the number that decides your limit

FOIR — the fixed obligation to income ratio — caps your total EMIs as a share of monthly income. Most lenders work within 40-55%, with the higher end reserved for high earners and salaried applicants at large employers.

Crucially, existing EMIs come out of that allowance first. On ₹1 lakh monthly income at 50% FOIR, your total EMI capacity is ₹50,000; a ₹15,000 car loan EMI leaves only ₹35,000 for the new loan, which can reduce your eligible amount by tens of lakhs on a long-tenure home loan.

Rate and tenure change eligibility as much as income

An EMI capacity of ₹35,000 supports roughly ₹40 lakh over 20 years at 8.5%, but only about ₹28 lakh over 10 years at the same rate. The same monthly payment buys a much larger loan when spread over a longer period.

That is why lenders often propose a longer tenure when an application falls short. It works, but the extra interest is real — check the total cost in our EMI calculator before accepting.

What lenders check that a calculator cannot

Eligibility is a policy decision, not just arithmetic. Credit score, employment type and stability, age relative to retirement, the property or asset being financed, and its loan-to-value limit all shape the final sanction.

For home loans there is a second ceiling: lenders typically fund only up to 75-90% of the property value depending on the loan size. Your sanction is the lower of the income-based figure and that loan-to-value cap.

Example: ₹1 lakh income, ₹15,000 existing EMI

Net monthly income: ₹1,00,000
FOIR applied: 50%
Total EMI capacity: ₹50,000
Existing EMIs: ₹15,000
Available for new EMI: ₹35,000
Eligible loan at 8.5% / 20 yrs: ≈ ₹40.3 lakh

Clearing the existing ₹15,000 EMI before applying would raise the same eligibility to roughly ₹57.6 lakh — often a bigger lever than negotiating the interest rate.

Frequently asked questions

What is FOIR and what value should I use?

FOIR is the share of your monthly income a lender allows to go towards all EMIs combined. Use 40% for a conservative estimate, 50% for a typical salaried case, and higher only if your income is well above average.

Does a credit card outstanding reduce my eligibility?

Yes. Lenders usually count a percentage of your card balance, or the minimum due, as a monthly obligation. Paying cards down before applying frees up EMI capacity.

Will a co-applicant increase how much I can borrow?

Adding an earning co-applicant lets the lender pool both incomes, which usually raises eligibility substantially. Both applicants become jointly liable for the full loan.

Is the amount shown here what the bank will sanction?

Treat it as an upper estimate of the income-based limit. The final sanction also depends on your credit score, employment profile, and — for secured loans — the value of the asset being financed.

Why does a longer tenure increase my eligibility?

Spreading repayment over more months lowers the EMI per rupee borrowed, so the same EMI capacity supports a larger principal. The trade-off is considerably more total interest.