Loan Eligibility Calculator

Q: What is FOIR and why does it matter?

FOIR is the share of your monthly income that a lender will allow to go toward all fixed obligations, including the new loan. If a lender uses a 50% FOIR and you earn 1,00,000 a month, your total EMIs across every loan cannot exceed 50,000. It's the single biggest constraint on how much you can borrow.

Q: Does my credit card balance affect my loan eligibility?

Yes. Lenders typically count a percentage of your outstanding card balance — often around 5% — as a monthly obligation, even if you usually clear the full bill. Paying down card balances before applying can noticeably improve your eligibility.

Q: How can I increase how much loan I qualify for?

Closing or paying down existing loans frees up FOIR headroom. Adding a co-applicant with their own income raises the combined figure. A longer tenure increases the eligible amount, though at a real cost in total interest. Improving your credit score can also move you into a better FOIR band with some lenders.

Q: Is this the amount the bank will actually sanction?

Treat it as an upper estimate of the income-based limit. The final sanction depends on the lender's internal credit policy, verification of your documents, the property or asset valuation for secured loans, and your credit bureau record. Getting a formal pre-approval is the only way to know for certain.

Q: Should I borrow the maximum I'm eligible for?

Usually not. Being eligible for an amount doesn't mean the EMI will sit comfortably alongside your savings goals, insurance and emergency fund. Many people find that borrowing well below their ceiling leaves room to handle a job change or a rate increase without strain.

Your Estimated Eligibility

Eligible Loan Amount

₹44,45,798

EMI You Can Afford

₹40,000

Total Interest Over Tenure

₹51,54,202

Total Repayment

₹96,00,000

A 50% FOIR on ₹1,00,000 allows total EMIs of ₹50,000 a month. After your existing ₹10,000, that leaves ₹40,000 for a new loan.

Eligible Loan Amount (46.3%)Interest Over Tenure (53.7%)

How the Loan Eligibility Calculator Works

Lenders use a ratio called FOIR — Fixed Obligation to Income Ratio — to decide how much of your income can go toward loan repayments. Most set it between 40% and 55%, with higher limits for higher earners.

Enter your monthly income, then the total of your existing EMIs — car loan, personal loan, credit card minimums, anything with a fixed monthly obligation.

The calculator works out the EMI you have room for, then converts that into a loan amount at the interest rate and tenure you expect.

The relationship runs backwards from a normal EMI calculation: instead of finding the EMI for a loan, it finds the loan that fits a given EMI.

Try adjusting the tenure. A longer tenure raises the amount you're eligible for, because the same EMI stretches further — though it costs considerably more in total interest.

Formula Used

The EMI you can support is converted into a loan amount using the present value of an annuity:

Eligible Loan = EMI × ((1+r)^n − 1) / (r × (1+r)^n)

EMI(Monthly income × FOIR%) − existing EMIs
rMonthly interest rate (annual rate ÷ 12 ÷ 100)
nTotal number of monthly instalments (tenure in years × 12)

Example Calculation

Suppose you earn 1,00,000 a month, already pay 10,000 in EMIs, and the lender applies a 50% FOIR on a 20-year loan at 9%.

Monthly Income100,000
Existing EMIs10,000
FOIR50%
Interest Rate9% p.a.
Tenure20 years
ResultEMI available ≈ 40,000 · Eligible loan amount ≈ 44,45,800

Important Assumptions

This is the income-based ceiling only. Lenders also weigh your credit score, age, job stability, employer category and repayment history, any of which can reduce the sanctioned amount.
For secured loans there is a second, separate ceiling. Home loans are also capped by the loan-to-value ratio on the property, so the sanctioned amount is the lower of the two limits.
Use your net take-home pay, not your CTC, for the income figure. Lenders assess what actually reaches your account.
FOIR limits vary by lender and by income band. If you don't know the lender's figure, 50% is a reasonable starting assumption.
Stable additional income — rental income, or a co-applicant's salary — can raise the figure. Variable income like bonuses is usually discounted or ignored.