Loan Eligibility Calculator
Find your maximum loan amount based on income, existing EMIs, and FOIR
tuneAdjust Inputs
Max Eligible Loan
₹38,62,448
≈ 38.6 Lakh
Available EMI
₹32,000
FOIR: 40% of income
Monthly Income
₹80,000
Net take-home
Max EMI Allowed
₹32,000
40.0% of income
Existing EMIs
₹0
0.0% of income
Remaining Income
₹48,000
60.0% of income
Eligibility Across Loan Types
| Loan Type | Rate | Tenure | Max Loan |
|---|---|---|---|
| — | |||
functions FOIR Formula
Max EMI = Income × FOIR%
Max Loan = Max EMI × ((1+r)ⁿ − 1) / (r × (1+r)ⁿ)
r = Monthly rate | n = Tenure in months
What is Loan Eligibility?
Loan eligibility is the maximum loan amount a lender will approve based on your income, existing debt obligations, credit score, and loan type. Banks use a metric called FOIR (Fixed Obligation to Income Ratio) — the maximum percentage of your income that can go toward total EMI payments.
Most banks use FOIR of 40–50% for salaried employees and 50–65% for self-employed. Government employees and doctors often get higher FOIR limits. A high CIBIL score (750+) can also help you negotiate a higher FOIR or better rate.
lightbulb Example Calculation
Scenario: Suresh Kumar earns ₹80,000/month, has ₹10,000 existing car loan EMI, and wants a home loan at 8.5% for 20 years
1FOIR 40% → Max total EMI = ₹32,000
2Available EMI = ₹32,000 − ₹10,000 = ₹22,000
3Max home loan at 8.5% × 20yr = ≈ ₹26.6 lakh
✓ Suresh's home loan eligibility ≈ ₹26.6 lakh — existing EMI reduces eligible amount significantly
Frequently Asked Questions
How banks determine your loan eligibility
What is FOIR and how does it affect my loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your gross/net income that can go toward loan repayments. Most banks cap FOIR at 40–50% for salaried and 50–65% for self-employed. If you earn ₹1L/month and have ₹20K in existing EMIs, your available EMI for a new loan is only ₹20K (at 40% FOIR) — significantly reducing your maximum eligible loan amount.
How can I increase my loan eligibility?
Key ways to increase eligibility: (1) Add a co-applicant with stable income — their income is added to yours; (2) Close existing loans before applying; (3) Improve your CIBIL score — 750+ gets best rates and higher FOIR; (4) Choose a longer tenure — increases eligible amount but costs more in interest; (5) Provide collateral — secured loans have higher eligibility than unsecured ones.
Does my CIBIL score affect loan eligibility?
Yes, significantly. A score of 750+ not only gets you approved but may qualify you for a higher FOIR limit (lenders trust high-score borrowers more). Below 700, lenders either reject or apply a lower FOIR, reducing your eligibility. Each loan application creates a hard enquiry that can temporarily drop your score by 5–10 points — avoid applying to multiple lenders simultaneously.
Is variable income counted for eligibility?
Banks count variable income (bonus, commission, rental income) differently. Typically 50–75% of the average of the last 2 years' variable income is included. Regular rental income from owned property is usually counted at 80% after tax deductions. For self-employed, the average net profit over 2–3 years of ITR is considered. One-time incomes (sale of assets, gifts) are generally excluded.