Loan Eligibility Calculator

Loan Eligibility Calculator

Know your borrowing power.

Estimate how much Home, Car, Personal or Education loan you qualify for — the FOIR-based math every Indian bank uses, with a downloadable eligibility report.

FOIR-BasedHome / Car / Personal / EducationConfigurable FOIRApproval Confidence100% Private

Loan type

Your monthly budget

No income or FOIR needed — we solve the same EMI formula for the principal.

Max EMI affordable / month
₹25.0 K
₹1.0 K₹5.00 L
Interest rate (p.a.)
%
8.50 % per annum
0%30%
Loan tenure
20 years
yrs
1 yr40 yrs

Eligibility snapshot

Live

Maximum loan amount

₹28.81 L

For an EMI of ₹25,000/month · 20y at 8.50%

Monthly EMI

₹25,000

Total interest

₹31.19 L

Total repayment

₹60.00 L

Tenure

20 yrs

240 months

This is a pure budget-to-principal calculation — no income or FOIR assumptions. A lender will also check your income, existing EMIs and credit score.

What can you comfortably afford?

An EMI of ₹25,000/month buys about ₹28.81 L. Curious what actually fits your budget once expenses are counted?

The Loan Affordability Calculator shows “Bank Will Lend” vs “You Can Comfortably Afford” side by side — factoring in expenses, savings goals and a safety buffer.

See your Affordability number

See eligibility by salary

Ready-made guides for monthly salaries from ₹20,000 to ₹2,00,000 — eligible amount, EMI and FOIR headroom for each.

Home loan eligibility by salary
Overview

About the Loan Eligibility Calculator

Eligibility is not a credit-score question — it is an arithmetic one. Lenders work from FOIR: the share of your net monthly income that can go to fixed obligations. Most Indian banks cap it at 40–55%, sliding upward with income. Whatever headroom is left after your existing EMIs is what a new loan can consume, and that headroom, run backwards through the EMI formula, is your sanction.

That is exactly what this calculator does. It goes from income and existing obligations to a rupee borrowing limit — so you know your number before a bank pulls a hard enquiry on your credit report.

Worked example

Worked example: ₹75,000 net salary with an existing ₹12,000 EMI

Net monthly income
₹75,000
FOIR cap (50%)
₹37,500
Existing EMIs
₹12,000
Available for new EMI
₹25,500
Eligible loan (8.6%, 20y)
₹29,17,000
Eligible if no existing EMI
₹42,89,000

On ₹75,000 net income at a 50% FOIR, total obligations can reach ₹37,500. A running car loan EMI of ₹12,000 eats into that, leaving ₹25,500 for the new loan. At 8.6% over 20 years, ₹25,500 a month supports a principal of about ₹29.17 L.

Clear that car loan and the same salary supports ₹42.89 L. The ₹12,000 monthly obligation is costing you ₹13.72 L of home loan eligibility — roughly ₹1.14 L of borrowing capacity for every ₹1,000 of existing EMI. That ratio is the most useful number on this page and almost nobody calculates it before buying a car on finance.

Two adjustments lenders apply that this baseline doesn't: the LTV cap and the co-applicant. Even at ₹42.89 L of income-based eligibility, a bank will fund only 75–90% of property value, so the property price also has to work. And adding an earning spouse as co-applicant pools both incomes against the same FOIR — usually the fastest legitimate way to lift a sanction.

The maths

How it’s calculated

Eligible EMI = (Net income × FOIR) − Existing EMIs; Principal = EMI × ((1+r)ⁿ − 1) ÷ (r × (1+r)ⁿ)

The first step caps your affordable EMI from income; the second inverts the standard EMI formula to convert that instalment back into a principal at a given rate and tenure. Because the inversion is compound, small EMI changes swing the eligible amount a lot — which is why clearing one small loan can move a sanction by lakhs.

Net income means take-home after PF, professional tax and TDS — not CTC. Lenders typically average the last three to six months of salary credits and treat variable pay, incentives and rental income conservatively, often counting only 50–70% of it. Self-employed applicants are assessed on two to three years of ITR net profit plus depreciation add-back, which usually produces a lower figure than the bank statement suggests.

What moves the number

Factors that affect your loan eligibility

  • Existing EMIs

    Every ₹1,000 of current obligation costs roughly ₹1.14 L of home loan eligibility at 8.6% over 20 years. Closing a small loan before applying is often the highest-leverage move available.

  • The FOIR band your income falls in

    Banks allow 40% at lower incomes and up to 55–60% above roughly ₹1.5 L a month, on the logic that high earners have more residual income after fixed costs.

  • Credit score and card utilisation

    Below 700 the FOIR cap tightens or the application is declined outright. Revolving card balances count toward obligations even when you pay in full each month.

  • Age and remaining working years

    Tenure is capped at retirement age, typically 60 for salaried applicants. A 45-year-old gets 15 years where a 30-year-old gets 30 — which directly limits the principal.

  • Co-applicant income

    Adding an earning spouse or parent pools incomes against the same FOIR. It is the most common and most effective route to a larger sanction.

  • Income type and stability

    Salaried applicants with stable employment get the cleanest assessment. Variable pay is discounted; self-employed income is assessed on ITRs and averaged across years.

Related tool

Next: turn eligibility into an actual property budget

Eligibility tells you what a bank will lend. It does not tell you what you can buy. A ₹29.17 L sanction at an 80% LTV means a property around ₹36.5 L — and you still need the ₹7.3 L down payment plus stamp duty, registration and MODT charges in cash.

The Loan Affordability Calculator works from the other direction: your income and savings to the property price that genuinely fits, with acquisition costs included rather than discovered at the registrar's office.

Open the Loan Affordability Calculator
Avoid these

Common mistakes

  • Calculating FOIR on CTC instead of take-home salary, which overstates eligibility by 20–30%.
  • Buying a car on EMI months before applying for a home loan and losing lakhs of eligibility.
  • Assuming eligibility equals affordability — the bank's cap is not a budget.
  • Applying to several lenders simultaneously and accumulating hard enquiries that lower the score being assessed.
  • Ignoring the retirement-age cap on tenure when applying later in a career.
  • Counting variable pay and bonuses in full when lenders typically discount them heavily.
How it works

Understand every number

What is FOIR?

Fixed Obligations to Income Ratio — the % of your monthly take-home income already committed to EMIs and fixed liabilities. Banks add the new EMI to your existing obligations and cap the total at 40-55% depending on income band, loan type and employment.

How banks compute loan eligibility

Available EMI = (Monthly income x FOIR cap) minus existing EMIs. That available EMI is then reverse-engineered through the standard EMI formula with the offered rate and maximum tenure to arrive at the eligible loan amount.

What is the ideal FOIR?

Under 40% is comfortable. 40-50% is manageable but stressed. Above 50% leaves no room for emergencies and most lenders will decline or offer a lower amount. Aim to keep the new EMI well under 40% of take-home for financial peace.

How can I improve my eligibility?

Reduce existing EMIs (close small personal loans / credit-card EMIs), extend tenure to lower EMI (only if you're young), add a co-applicant with income, raise your credit score to 750+, and choose a lender with a higher FOIR band such as SBI or HDFC for premium salary segments.

How does tenure affect eligibility?

A longer tenure lowers each EMI, which raises the loan amount you qualify for under FOIR. But total interest grows sharply — extending a home loan from 20 to 30 years can boost eligibility by 25-30% but add 60-80% more interest over the life of the loan.

Salaried vs self-employed

Salaried applicants at MNCs, listed companies and PSUs get the standard FOIR (up to 55% at premium banks). Self-employed applicants are typically assessed 5-10 percentage points tighter because income is variable — 3 years of ITR and audited books are usually required.

FAQ

Frequently asked

Yes. It uses the same FOIR-based reverse-EMI method every RBI-regulated Indian bank applies. Results reconcile to SBI, HDFC, ICICI, Axis and Bajaj Finserv eligibility calculators once you match their FOIR band and offered rate.

FOIR (Fixed Obligations to Income Ratio) is the share of your monthly take-home already going to EMIs and fixed obligations. Lenders cap total EMIs (existing + new) at a FOIR ceiling — 40-55% depending on income, loan type and employment — before sanctioning.

Switch the loan type at the top and the rules (FOIR cap, default rate, max tenure) adjust automatically. Enter income and existing EMIs to see the maximum eligible loan and a recommended safer amount.

Below 40% is healthy. 40-50% is workable but leaves little buffer. Above 50% is a red flag — you'll struggle with emergencies and rate resets. The calculator's Loan Health Score reflects this directly.

Reduce existing EMIs, extend tenure (with caution — interest grows fast), add a co-applicant with income, improve your credit score to 750+, and consider lenders with higher FOIR bands for your income segment.

Longer tenure = lower EMI = higher eligibility under FOIR. But total interest can nearly double over the life of the loan. Use the shortest tenure your monthly budget can comfortably absorb.

Higher take-home directly raises available EMI (income x FOIR minus existing EMIs) and therefore eligible loan. Premium salary bands (Rs 1L+ take-home) often unlock a higher FOIR cap of 50-55% at private banks.

No — this is a planning-only estimate. Final sanction also depends on your credit score (750+ ideal), employer category, banking history, and product-specific policies. Treat this as your borrowing ceiling, not a sanction.

Self-employed applicants are assessed with a tighter FOIR (5 percentage points lower here) to reflect variable income. Banks also ask for 2-3 years of ITR, audited financials and GST returns. Salaried at listed companies get the sharpest rates and highest FOIR.

Yes — click Download PDF. You get a branded EMI360 eligibility report with your inputs, FOIR analysis, income allocation chart, health score, and actionable recommendations.

No. Every calculation runs entirely in your browser. Nothing is uploaded, stored or shared.