Loan Eligibility Calculator

About the Loan Eligibility Calculator

Loan eligibility is the maximum amount a lender is willing to give you, based mainly on your ability to repay. The single biggest factor is your income and how much of it is already committed to other EMIs. Lenders use a measure called the fixed-obligation-to-income ratio (FOIR), typically capping your total EMIs at around 40-50% of your monthly income. This calculator estimates your borrowing limit from your income, existing obligations and the loan terms.

The logic works backwards from an affordable EMI. First, the lender decides the maximum EMI you can support, which is your income multiplied by the allowed FOIR, minus your current EMIs. Then it converts that EMI into a loan amount using the interest rate and tenure through the reducing-balance formula. A higher income, a longer tenure or a lower interest rate all increase the eligible amount, while existing loans reduce it.

Beyond income, lenders also weigh your credit score, employment stability, age and the type of loan. A strong CIBIL score can improve both your eligibility and the rate offered. This tool gives a realistic starting estimate so you apply for an amount you are likely to get, avoiding the credit-score damage of repeated rejections. Treat the result as indicative, since each lender applies its own policies.

How to use it

• Lenders cap total EMIs at roughly 40-50% of your monthly income through the FOIR rule.
• Clearing or reducing existing EMIs directly increases how much new loan you can get.
• A longer tenure or lower rate raises eligibility but increases the total interest you pay.
• Maintain a high credit score, as it improves both your eligible amount and your interest rate.