Loan Eligibility Calculator
Check how much loan you are eligible for based on your income, existing EMIs, and repayment capacity.
Maximum EMI Capacity
₹30,000
Maximum Loan Amount
₹14,12,391
Total Interest Payable
₹3,87,609
Recommended Loan
₹14,00,000
Loan Eligibility Formula
Max EMI = (Income – Existing EMIs) × (FOIR / 100) | Loan Amount = Max EMI × [(1+r)^n – 1] / [r × (1+r)^n]
The maximum EMI you can afford is calculated using the FOIR method. This EMI is then used to derive the maximum loan amount using the present value of annuity formula, where r is the monthly interest rate and n is the loan tenure in months.
Example Calculation
Income ₹60,000, existing EMIs ₹0, FOIR 50%, rate 10%, tenure 5 years
Max EMI = ₹60,000 × 50% = ₹30,000 | Max Loan = ₹14,12,391
You can get a loan of approximately ₹14,00,000
Understanding Loan Eligibility
Factors Affecting Loan Eligibility
Lenders evaluate multiple factors including your income, existing debt obligations, credit score, employment stability, age, and the loan tenure. Higher income, lower existing EMIs, and a strong credit history improve your eligibility significantly.
What is FOIR and How It Works
FOIR (Fixed Obligation to Income Ratio) measures your existing debt burden against your income. Most banks cap FOIR at 50%, meaning your total EMI commitments should not exceed half your monthly income. A lower FOIR increases your borrowing capacity.
Importance of Credit Score
Your CIBIL score is a three-digit number (300-900) that summarizes your credit history. Scores above 750 are considered excellent and qualify you for lower interest rates. Scores below 650 may lead to rejection or higher rates.
Tips to Improve Eligibility
Pay all EMIs and credit card bills on time, reduce credit utilization below 30%, avoid multiple loan applications, add a co-applicant with good credit, and choose a longer tenure to reduce EMI burden and increase eligible amount.
Frequently Asked Questions
What is FOIR in loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that goes towards existing loan EMIs. Lenders typically allow up to 50% FOIR, meaning your total EMIs should not exceed 50% of your monthly income.
How does CIBIL score affect loan eligibility?
A CIBIL score above 750 significantly improves your chances of loan approval and may fetch better interest rates. Scores below 650 often result in rejection or higher interest rates.
How can I improve my loan eligibility?
Increase your income, pay off existing debts, reduce credit card utilization, add a co-applicant with good credit, and maintain a healthy CIBIL score above 750.
Can I get a loan if I apply jointly?
Yes, applying with a co-applicant (spouse, parent) combines both incomes, increasing your eligible loan amount. Both applicants credit histories are evaluated.
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