// Free Online Tool

Loan Eligibility Calculator

Find the maximum loan amount you can borrow based on your monthly income, existing EMIs, interest rate and tenure. Uses the 50% FOIR norm used by Indian banks.

Result will appear here.

// Overview

HOW BANKS CALCULATE ELIGIBILITY

Loan eligibility is primarily determined by your income, existing obligations, CIBIL score, and employment type. The key metric is FOIR (Fixed Obligation to Income Ratio) — total EMIs as a percentage of monthly income. Most Indian banks use 40-55% FOIR.

Example: Net income Rs 60,000, existing EMI Rs 5,000. At 50% FOIR, max permissible new EMI = Rs 30,000 - Rs 5,000 = Rs 25,000. At 8.5% for 20 years this gives approximately Rs 25 lakhs eligibility.

Other key factors: CIBIL score (minimum 700-750 for most banks), employment stability (2+ years in current job), age (determines maximum tenure), and additional income sources including rental income and freelance earnings.

// Boost Eligibility

HOW TO INCREASE YOUR ELIGIBILITY

  • Add a co-applicant (spouse) to combine income
  • Close existing loans before applying for a new large loan
  • Improve CIBIL score by paying all dues on time for 6+ months
  • Opt for longer tenure to increase the eligible amount
  • Show all income sources including rent and freelance earnings

// Use Cases

USE CASES

  • Home loan planning before visiting a bank
  • Car loan eligibility check
  • Personal loan eligibility for medical or education expenses
  • Business loan assessment for SMEs

// FAQ

FREQUENTLY ASKED QUESTIONS

What FOIR do Indian banks use?
Most banks use 40-55% FOIR. PSU banks like SBI allow up to 50%. Private banks may allow 55% for high-income applicants.
Can I get a home loan on Rs 30,000 salary?
At Rs 30,000 net income, max EMI at 50% FOIR = Rs 15,000. At 8.5% for 20 years, eligible loan = approximately Rs 15 lakhs. A co-applicant doubles this.
Does CIBIL score affect eligibility?
Yes. Most banks require 700-750+ CIBIL. Lower scores may result in rejection or higher interest rates.
Does tenure affect eligible loan amount?
Yes. Longer tenure means lower EMI so you can borrow more for the same income.

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