Loan Eligibility Calculator
Loans & EMIEstimate the maximum loan a bank is likely to sanction you, based on your income, existing obligations and the FOIR limit lenders apply.
In short: Loan eligibility is the maximum loan amount a lender will sanction you. It is derived from your affordable EMI — a capped share (FOIR) of your monthly income minus existing EMIs — converted into a principal at the applicable rate and tenure.
Your inputs
Your inputs
- Net monthly income
- ₹1,00,000
- Existing EMIs
- ₹0
- Interest rate
- 9%
- Loan tenure
- 20 yrs
- FOIR limit
- 50%
Results
Eligible loan amount
₹55,57,248
Max affordable EMI
₹50,000
Income headroom for a new EMI
FOIR used
50%
Share of income toward EMIs
Total interest
₹64,42,752
Over 20 years
Eligible loan by tenure
How the principal you qualify for — and the interest on it — grows with tenure.
Tenure-wise eligibility
| Tenure (yrs) | Eligible loan | Interest | Total outgo |
|---|---|---|---|
| 5 | ₹24,08,669 | ₹5,91,331 | ₹30,00,000 |
| 10 | ₹39,47,085 | ₹20,52,915 | ₹60,00,000 |
| 15 | ₹49,29,670 | ₹40,70,330 | ₹90,00,000 |
| 20 | ₹55,57,248 | ₹64,42,752 | ₹1,20,00,000 |
| 25 | ₹59,58,081 | ₹90,41,919 | ₹1,50,00,000 |
| 30 | ₹62,14,093 | ₹1,17,85,907 | ₹1,80,00,000 |
Assumes the same affordable EMI at your chosen rate and FOIR limit.
How the Loan Eligibility Calculator works
Formula
- Income
- Net (take-home) monthly income
- FOIR
- Fixed-obligation-to-income ratio the bank allows
- Max EMI
- EMI you can afford after existing obligations
- rate, tenure
- Interest rate and loan term used to convert EMI into principal
Step-by-step calculation
Worked with the default values.
- 1
Allowed EMI budget (FOIR)
₹1,00,000 × 50%
= ₹50,000
- 2
Max affordable EMI
FOIR budget − existing EMIs
= ₹50,000
- 3
Eligible loan amount
P = EMI × ((1+r)ⁿ − 1) / (r × (1+r)ⁿ)
= ₹55,57,248
- 4
Monthly rate (r)
9% ÷ 12 ÷ 100
= 0.0075
How it works
- Banks cap your total EMIs at a share of net income — the FOIR, typically 40–55% — so first they work out the EMI you can afford.
- Any existing EMIs (car, personal, credit-card, other loans) are subtracted from that budget, leaving the room available for a new loan.
- That affordable EMI is then reverse-engineered into a maximum principal at the offered interest rate and tenure — the longer the tenure, the larger the eligible loan, but the more total interest you pay.
Examples
₹1,00,000 income, no existing EMIs, 50% FOIR, 9% for 20 years
Affordable EMI ≈ ₹50,000, supporting an eligible loan of roughly ₹55.6 lakh.
Same income but with a ₹15,000 existing EMI
Affordable EMI falls to ₹35,000 and eligibility drops to about ₹38.9 lakh.
Understanding the Loan Eligibility Calculator
What loan eligibility means
Loan eligibility is the maximum amount a lender is willing to sanction you. For income-based loans — home, personal, car — the single biggest driver is your repayment capacity, and banks measure that with a rule called the Fixed-Obligation-to-Income Ratio (FOIR).
The idea is simple: a lender will only let a certain share of your net monthly income go toward loan EMIs. If your take-home pay is ₹1,00,000 and the bank applies a 50% FOIR, it assumes you can commit at most ₹50,000 a month to EMIs. Any EMIs you already pay are subtracted from that budget, and what remains is the EMI available for the new loan.
From affordable EMI to eligible loan
Once the bank knows your affordable EMI, it works backwards. Using the offered interest rate and tenure, it converts that EMI into the largest principal the EMI can service. This is the reverse of the standard EMI formula.
Two levers change the result sharply:
- Tenure — a longer term lowers the EMI needed per rupee borrowed, so the same affordable EMI supports a bigger loan. But you pay more total interest, sometimes far more.
- Interest rate — a lower rate means each EMI covers less interest and more principal, lifting the eligible amount.
Why FOIR is capped
Banks cap FOIR — usually between 40% and 55% — to protect both you and themselves. Leaving a cushion of income beyond EMIs means you can absorb rent, living costs, emergencies and a rate hike on a floating loan without defaulting. High earners with strong credit are sometimes allowed a higher FOIR because a larger absolute income remains even after generous EMIs.
What else affects the final sanction
This calculator gives an income-based ceiling, but the actual approval also weighs your credit score, employment stability, age, and — for home loans — the property’s value through the loan-to-value (LTV) cap. A score above 750, a co-applicant’s income and a smaller existing-debt load all push eligibility up. Borrow deliberately below your maximum: the highest eligible figure is rarely the wisest loan to take.
Pros
- Gives a quick, income-based ceiling before you approach a lender, so you shop realistically.
- Factors in existing EMIs, reflecting your true repayment capacity rather than gross income.
- Shows how tenure and rate change the amount you qualify for.
- Helps you plan the down payment needed to bridge the gap to your target purchase.
Cons
- It is an estimate only — the actual sanction depends on credit score, property value and lender policy.
- Uses a single flat FOIR, whereas banks apply income-slab and profile-based variations.
- Ignores processing fees, insurance and LTV caps that can further limit the payout.
Tips
- 1Keep your EMI-to-income ratio well under the FOIR cap to stay financially comfortable.
- 2Clear or consolidate small existing loans before applying to free up FOIR headroom.
- 3Add a co-applicant with steady income to boost eligibility on a home loan.
- 4Weigh a longer tenure carefully — it lifts eligibility but sharply raises total interest.
- 5Maintain a credit score above 750 to unlock a higher amount at a better rate.
Frequently asked questions
Everything you need to know about the Loan Eligibility Calculator.
What is FOIR?
How is my loan eligibility calculated?
Does a longer tenure increase my eligibility?
Why do existing EMIs reduce how much I can borrow?
Is this the same as the amount I will actually get?
What income counts for eligibility?
How can I increase my loan eligibility?
Does my credit score affect eligibility?
What FOIR do banks typically use in India?
Is a higher eligible amount always good?
Methodology & sources
How the Loan Eligibility Calculator is calculated, and where the underlying rules come from.
How we calculate it
Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.
Sources & references
Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.
Last reviewed for accuracy on .
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