Loan Eligibility Calculator
Estimate the maximum loan amount you may qualify for, based on your monthly income, existing obligations and the lender's typical affordability assumptions.
How Loan Eligibility Is Determined
Lenders assess how much of your income is already committed to fixed obligations — including existing EMIs — and cap total obligations at a percentage of income known as FOIR (Fixed Obligation to Income Ratio), commonly 40-50%. The remaining affordable EMI is then converted into a maximum loan amount using the standard EMI formula in reverse, based on the interest rate and tenure you specify.
Ways to Increase Your Eligibility
- Pay down or close existing loans and credit card balances before applying.
- Choose a longer tenure to lower the required EMI (though this increases total interest).
- Add a co-applicant with a stable income to increase combined eligibility.
- Improve your credit score to access better rates and higher FOIR limits.
Frequently Asked Questions
How is loan eligibility calculated?
Lenders typically cap your total EMI obligations (existing + new loan) at a fixed percentage of your monthly income — known as FOIR (Fixed Obligation to Income Ratio), commonly 40-50%. The maximum affordable EMI is then converted into a loan amount using the EMI formula in reverse.
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that lenders allow toward all fixed obligations, including EMIs. A lower FOIR is more conservative; lenders often use 40-50% depending on income level and credit profile.
Does my credit score affect loan eligibility?
Yes — a higher credit score can improve the interest rate offered and, in some cases, the FOIR a lender is willing to extend, both of which increase your eligible loan amount.
Why is my eligible amount lower than expected?
Existing EMIs, credit card obligations, a lower FOIR assumption, or a higher interest rate all reduce the loan amount a lender is willing to offer. Try adjusting the tenure or reducing existing obligations to see the effect.
Is this eligibility estimate guaranteed by lenders?
No — this is an estimate based on common lending assumptions. Actual eligibility depends on the specific lender's policy, your credit history, employment type, and other factors evaluated during underwriting.