Loan Eligibility
Loan Eligibility
1,500
Max EMI Allowed
40%
FOIR Used
172,846
Max Loan Amount
What is Loan Eligibility?
Loan eligibility refers to the maximum loan amount a borrower qualifies for based on their income, existing debts, credit score, and the lender's criteria. Banks and financial institutions use metrics like FOIR (Fixed Obligation to Income Ratio) to determine how much of your income can service loan repayments.
This calculator uses a 40% FOIR assumption, which is a common benchmark used by many lenders for home and personal loans.
Factors Affecting Loan Eligibility
- Income: Higher income = higher eligibility. Lenders consider gross monthly income.
- Existing obligations: Existing EMIs reduce the available EMI capacity for a new loan.
- Credit score: A higher credit score (750+) improves approval chances and may get better rates.
- Employment type: Salaried applicants may have different eligibility than self-employed.
- Loan tenure: Longer tenure = lower EMI = higher eligible amount (but more total interest).
Frequently Asked Questions
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your gross income that goes toward loan repayments. Most lenders cap this at 40–50%. If your existing EMIs already use 30% of income, only 10–20% remains available for a new loan.
Does a longer loan tenure increase eligibility?
Yes. A longer tenure reduces the EMI for the same loan amount, meaning you qualify for a larger loan within your EMI capacity. However, you pay significantly more interest over the loan term.
How can I increase my loan eligibility?
You can add a co-applicant (like a spouse) to combine incomes, close existing loans to free up EMI capacity, increase your loan tenure, or improve your credit score to qualify for lower interest rates.
Is this an official loan approval?
No, this is an estimate based on income and a standard 40% FOIR assumption. Actual loan eligibility depends on the specific lender's policies, your credit history, employment type, age, and other factors.
How It Works
Lenders typically allow up to 40–50% of gross income for all EMIs (Fixed Obligation to Income Ratio). The available EMI capacity determines the maximum loan amount at the given rate and tenure.