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Loan Eligibility.

Calculate exactly how much loan you can get based on your salary, existing EMIs, and FOIR. See tips on how to improve your eligibility.

Last updated: June 15, 2026
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Calculation Results

Max Eligible Loan ₹0
Recommended ₹0
Max EMI Approvable ₹0

Eligibility Breakdown

Disclaimer: This calculator provides estimates for educational purposes only. Actual rates and terms may vary based on your lender, credit profile, and market conditions.

Quick Answer

How is loan eligibility calculated?

Banks calculate loan eligibility using FOIR (Fixed Obligation to Income Ratio), which caps your total EMIs at roughly 50% of your net income. For a monthly income of ₹1,00,000 with ₹15,000 in existing EMIs, your maximum new EMI is capped at ₹35,000. At 8.5% interest over 20 years, this translates to a maximum eligible loan of ₹40,33,088.

Formula
Maximum New EMI = (Net Monthly Income × Max FOIR%) - Existing EMIs Eligible Loan = [Max New EMI × ((1+r)^n - 1)] / [r × (1+r)^n]
Example
Income=₹1,00,000 | Existing EMI=₹15,000 | FOIR=50% Max New EMI = (100000 × 0.5) - 15000 = ₹35,000 Max Loan (8.5%, 20 yrs) = ~₹40.3 Lakhs
Last updated: June 15, 2026

How Banks See You

Lenders use a metric called FOIR (Fixed Obligation to Income Ratio). Usually, banks do not want your total EMI obligations (including the new loan) to exceed 50-60% of your net monthly salary.

Based on your current inputs, your FOIR is 0%. The bank allows a maximum FOIR of 50% for your profile. That leaves room for a new EMI, which dictates the total loan amount you can afford at your chosen interest rate.

Loan Eligibility & FOIR Formula

Eligibility is calculated in two steps. First, find the maximum new EMI you can afford using FOIR:

Max New EMI = (Net Income × FOIR%) - Existing EMIs

Then, reverse-calculate the loan principal (P) from that EMI using the standard PV of annuity formula:

P = [EMI × ((1+R)^N - 1)] / [R × (1+R)^N]
  • FOIR% = Usually 50% (can be 60% for high-income profiles)
  • R = Expected monthly interest rate
  • N = Loan tenure in months
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Common mistakes when checking eligibility.

Mistake: Including variable bonuses in net income
Correct: Banks strictly look at fixed, guaranteed monthly "in-hand" salary.
Impact: Your bank will reject your application for being over-leveraged based on base salary.
Mistake: Hiding existing 'small' loans
Correct: Include all BNPL (Buy Now Pay Later), credit card EMIs, and personal loans.
Impact: The bank will pull your CIBIL/Equifax report, find the hidden debts, and instantly reduce your eligible loan amount.
What is FOIR?

FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your income that goes towards paying debts. Lenders use it to determine how much new EMI you can afford.

How does my credit score affect loan eligibility?

A higher credit score gives lenders confidence. While it primarily affects your interest rate, a poor credit score reduces the maximum FOIR lenders will allow, directly reducing your eligible loan amount.

Why is the recommended loan lower than the maximum?

Maxing out your eligible loan leaves no room for emergencies or future interest rate hikes. Taking 80% or less of your max eligibility is considered financially safe.

Do living expenses count as obligations?

No, FOIR only calculates fixed obligations like other EMIs, credit card minimums, and rent (sometimes). General living expenses are assumed within the remaining income.

How can I increase my loan eligibility?

You can increase eligibility by: 1) Paying off existing debts to lower obligations, 2) Applying with a co-borrower to combine incomes, or 3) Increasing your loan tenure to reduce the monthly EMI burden.

Further reading.

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