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Loan Eligibility Calculator

Check how much home or personal loan you are eligible for based on your monthly income, existing EMIs, and Fixed Obligation to Income Ratio (FOIR).

Your Financial Details

₹
Your total monthly salary (before deductions)
₹
Total of all current loan EMIs
%
Banks typically allow 40-50% FOIR
%
Expected annual interest rate
months
= 20 years
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Enter your financial details to check loan eligibility

About Loan Eligibility Calculator

This calculator helps you determine the maximum loan amount you are eligible for based on your monthly income, existing financial obligations, and the lender's Fixed Obligation to Income Ratio (FOIR) criteria.

What is FOIR?

FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that goes toward paying EMIs and other fixed obligations. Banks use FOIR to assess your repayment capacity and determine how much additional loan you can afford.

Formula: FOIR % = (Total Monthly EMIs ÷ Gross Monthly Income) × 100

FOIR Guidelines by Lenders

  • SBI, HDFC, ICICI (Home Loans): 40-50% FOIR
  • Personal Loans: 50-55% FOIR
  • Car Loans: 45-50% FOIR
  • High Net Worth Individuals: Up to 60% FOIR
  • Low Credit Score Applicants: 35-40% FOIR (conservative)

Factors Affecting Loan Eligibility

  • Monthly Income: Higher income = higher loan eligibility
  • Existing EMIs: Lower existing obligations = more borrowing capacity
  • Credit Score: 750+ gets maximum eligibility, 650-749 moderate, below 650 limited
  • Age: Younger applicants get longer tenure, hence higher eligibility
  • Employment Stability: 2+ years in current job increases eligibility
  • Property Value (for home loans): Banks lend 80-90% LTV (Loan-to-Value)

How to Increase Your Loan Eligibility

  • Add a Co-Applicant: Spouse's income adds to total, increases eligibility by 50-70%
  • Pay Off Existing Loans: Reduces existing EMIs, frees up FOIR capacity
  • Improve Credit Score: Above 750 qualifies for maximum loan amount
  • Choose Longer Tenure: Lower monthly EMI = higher loan eligibility
  • Show Additional Income: Rental income, freelance earnings (if documented)
  • Reduce Credit Card Utilization: Keep below 30% of limit

Example Calculation

Scenario:

  • Monthly Income: ₹1,00,000
  • Existing Car Loan EMI: ₹15,000
  • FOIR Allowed: 50%
  • Interest Rate: 8.5% p.a.
  • Tenure: 20 years

Calculation:

  • Max Total EMI = ₹1,00,000 × 50% = ₹50,000
  • Available for New Loan = ₹50,000 − ₹15,000 = ₹35,000
  • Eligible Loan Amount = ₹35,000 → ~₹48,00,000

Important Notes

  • This is an indicative calculation. Actual eligibility depends on lender's internal policies.
  • Banks may consider other obligations like rent, utility bills in FOIR.
  • Higher FOIR (60%+) leaves little room for emergencies — risky financial position.
  • For joint loans, both applicants' incomes and obligations are considered.
  • Self-employed individuals: Eligibility based on ITR of last 2-3 years.