Loan Eligibility Calculator
Find out how much loan you can afford based on your income, existing debts, and desired tenure.
How banks decide how much loan you get
Lenders don't just look at your income — they look at how much of it is already committed. The standard method is FOIR (Fixed Obligation to Income Ratio), also called DTI (Debt-to-Income). Banks assume you can safely put only about 40–50% of your net monthly income toward loan EMIs, including any you already pay.
So your eligibility comes down to three things: your net monthly income, the EMIs you already have, and the interest rate and tenure of the new loan.
The eligibility formula
First, your maximum affordable EMI = (net monthly income × FOIR) − existing EMIs. That maximum EMI is then worked backwards — using the interest rate and tenure — into the largest loan principal whose EMI still fits within it.
That's why a longer tenure or a lower interest rate raises the amount you qualify for: each lets a bigger principal sit under the same EMI ceiling.
A quick example
Suppose your net income is ₹80,000/month and you already pay a ₹10,000 EMI. At a 50% FOIR, banks allow ₹40,000 total in EMIs — minus your existing ₹10,000 — leaving ₹30,000 for the new loan. At 9% interest over 20 years, a ₹30,000 EMI supports roughly ₹33 lakh of home loan.
Change the tenure to 10 years and the same ₹30,000 EMI only supports about ₹23 lakh — shorter tenure, lower eligibility.
How to increase your loan eligibility
Pay off or close existing loans and card dues to free up EMI capacity; choose a longer tenure; add a co-applicant such as a spouse to combine incomes; and keep a strong credit score, which earns you a lower rate and a more generous FOIR. Documenting extra income — bonuses, rent, side income — with proof helps too.
Frequently Asked Questions
How is loan eligibility calculated?
Lenders cap your total EMIs at roughly 40–50% of net monthly income (the FOIR method). Your maximum new EMI is that limit minus any EMIs you already pay; the calculator then converts that EMI — using the interest rate and tenure — into the largest loan amount you can get.
What is FOIR or DTI?
FOIR (Fixed Obligation to Income Ratio), also called DTI (Debt-to-Income), is the share of your income that goes to loan repayments. Banks usually allow 40–50%. The lower your existing obligations, the more new loan you qualify for.
How much loan can I get on my salary?
As a rough guide, banks lend an amount whose EMI stays within about 40–50% of your net income after existing EMIs. On ₹80,000/month with no other loans, that can be ₹40–50 lakh of home loan over a long tenure — but the exact figure depends on the rate, tenure and your credit profile. Enter your numbers above for an estimate.
Does a longer tenure increase eligibility?
Yes. A longer tenure lowers the EMI for the same loan, so a larger principal fits within your EMI limit — raising eligibility. The trade-off is more total interest paid over the life of the loan.
How can I increase my loan eligibility?
Close existing loans, choose a longer tenure, add a co-applicant to pool incomes, improve your credit score for a better rate, and document all your income sources. Each raises the loan amount a lender is willing to offer.
Is the calculated amount guaranteed?
No — it's an estimate of your borrowing capacity. Final approval also depends on your credit score, employment stability, the lender's policies, and property or collateral checks. Use it to plan before you apply.
Is the loan eligibility calculator free?
Yes — free, no signup, and instant. Nothing you enter leaves your browser.