Loan Eligibility Calculator

How Loan Eligibility Is Calculated

Banks use the FOIR (Fixed Obligation to Income Ratio) method to decide how much EMI you can afford, then reverse-calculate the loan amount:

1. Max Affordable EMI = (Monthly Net Income × FOIR%) − Existing EMIs
2. Max Loan Amount = Max EMI × [(1+r)^n − 1] / [r × (1+r)^n], where r is the monthly interest rate and n is the tenure in months — the reverse of the standard EMI formula.

This gives an estimate of the maximum loan a bank would typically approve, assuming no other issues (credit score, employment stability, property valuation for home loans, etc.).

📢 Typical FOIR Limits by Loan Type

Actual FOIR used varies by bank, your credit score, employment type (salaried vs self-employed), and city — this is an illustrative range.

Factors That Affect Your Loan Eligibility

• CIBIL/Credit Score: 750+ gets the best rates and highest eligibility; below 650 often leads to rejection or much higher interest rates.
• Existing EMIs and credit card dues: Every rupee of existing EMI directly reduces your new loan eligibility.
• Employment type and stability: Salaried employees with 2+ years' tenure and self-employed with stable ITR history typically get better terms.
• Age: Younger applicants can get longer tenures (up to 30 years for home loans), increasing eligibility since EMI is lower for the same loan amount.
• Co-applicant income: Adding a spouse or parent as co-applicant combines incomes, significantly boosting eligibility for home loans.
• Property value (secured loans): Banks also cap the loan at 75-90% of property value (Loan-to-Value ratio), whichever is lower than the income-based eligibility.