Loan Eligibility Calculator

Estimated loan amount you qualify for based on income and obligations.

Overview

Estimates the maximum loan sanction amount you qualify for based on net monthly income, existing EMIs, and debt-to-income limits (FOIR).

Formula & Calculation Method

Max EMI = (Net Monthly Salary × FOIR %) - Existing EMIs | Loan Amount = Present_Value(Max EMI, Rate, Tenure)

FOIR (Fixed Obligation to Income Ratio) is the percentage of monthly income lenders allow for total debt payments (typically 40% to 55%).

Worked Example: ₹80,000 Monthly Salary with ₹10,000 Existing Car EMI

Inputs: Monthly Net Income = ₹80,000 | Existing EMI = ₹10,000 | FOIR = 50% | Interest = 8.5% | Tenure = 20 Years

  • Allowed debt capacity = 50% of ₹80,000 = ₹40,000/month
  • Maximum available EMI for new loan = ₹40,000 - ₹10,000 = ₹30,000/month
  • Home loan per lakh EMI factor at 8.5% for 20 years = ₹868 per lakh
  • Eligible home loan amount = (30,000 / 868) × 1,00,000 = ₹34.56 Lakhs

Summary: Net Salary = ₹80,000 | Max Allowed EMI = ₹30,000 | Max Loan Eligibility = ₹34.56 Lakhs

Common Use Cases

  • Pre-Purchase Budgeting: Know your exact borrowing ceiling before paying token booking advances for properties.
  • Co-Applicant Planning: Calculate how adding a working spouse enhances total sanctioned loan amounts.
  • CIBIL Score Optimization: See how paying off small personal loans frees up FOIR headroom for larger home loans.

Frequently Asked Questions

What is FOIR?

Fixed Obligation to Income Ratio: the percentage of your monthly net income that goes toward paying all loan EMIs.

How does my credit score affect loan eligibility?

A CIBIL score of 750+ secures the lowest interest rates and highest eligibility multipliers from tier-1 banks.

Can I increase my loan eligibility without a co-applicant?

Yes, by opting for a longer loan tenure (e.g. 30 years instead of 20 years) or clearing existing small debts.

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