Loan Eligibility Calculator
Estimate the maximum loan amount a lender is likely to approve based on your income and existing debt obligations — a lender's-side view of borrowing capacity, using common income-multiple and obligation-ratio methods.
- 1Enter your monthly income
- 2Enter your existing monthly loan/EMI obligations, if any
- 3Enter the interest rate and tenure you're considering
- 4Click Calculate to see your estimated maximum eligible loan amount
The method: FOIR
Lenders limit total EMIs to a share of your income, called the Fixed Obligation to Income Ratio. This tool fixes FOIR at 50% of monthly income. It subtracts your existing EMIs to get the room left for a new EMI, then converts that EMI into the principal it could repay at your chosen rate and tenure using the standard EMI formula in reverse.
Worked example
Income Rs. 1,00,000 a month with Rs. 10,000 of existing EMIs: 50% of income is 50,000, so the maximum new EMI is Rs. 40,000. At 9% over 20 years that supports a loan of about Rs. 44.5 lakh.
Why a bank may say something different
- FOIR differs by lender and by income; it is often 40% to 55%. Lower it mentally if you want a safer figure.
- Banks also consider credit score, employment type, age, property value and loan-to-value limits. None of these appear here.
- If your existing EMIs are more than half your income, the result is zero or negative and you are not eligible by this method.
- Insurance, processing fees and variable interest rates are not included.
Being eligible for a loan is different from being comfortable repaying it. For a safer limit, aim for EMIs well below the 50% ceiling.