Loan Eligibility Calculator
Estimate how much loan you may be eligible for based on your monthly income, existing EMI obligations, and the FOIR (Fixed Obligation to Income Ratio) method commonly used by Indian lenders to assess repayment capacity.
Fill in the form and select "Calculate" to see your results here.
What is Loan Eligibility?
Lenders don't approve a loan simply because you want to borrow a certain amount — they assess whether you can realistically repay it, based mainly on your income relative to the EMI you'd need to pay. One common industry approach to this assessment is the FOIR (Fixed Obligation to Income Ratio) method: the lender decides what share of your monthly income can safely go toward all EMI obligations combined, works out the maximum EMI that fits within that share, and then converts that EMI into a loan amount at the applicable interest rate and tenure. This calculator applies the same FOIR logic so you can estimate your own eligibility before approaching a lender. It does not model your credit score, employment type, or existing liabilities beyond what you enter here — a lender's actual assessment considers all of these together.
How to use this calculator
- Enter your net monthly income — the amount you actually take home after tax.
- Enter the total of any existing EMIs you're currently paying (other loans, credit cards on EMI, and so on). Leave this at zero if you have none.
- Choose a FOIR assumption. Most lenders use somewhere between 40% and 60% depending on their policy and your income level.
- Enter the interest rate and tenure you expect for the new loan.
- Select "Calculate Eligibility" to see your maximum affordable EMI and the loan amount it can service.
Formula
The first step works out how much EMI your income can support after your existing obligations are accounted for. The second step then answers "what loan amount, at this rate and tenure, would produce exactly that EMI?" — which is the mirror image of the standard EMI calculation used on the Home Loan EMI and Personal Loan EMI calculators.
Example
Consider a net monthly income of ₹80,000, existing EMIs of ₹5,000, a FOIR of 50%, a desired interest rate of 9% p.a., and a tenure of 20 years (240 months). First, the maximum affordable EMI is (₹80,000 × 50%) − ₹5,000 = ₹40,000 − ₹5,000 = ₹35,000. Next, that ₹35,000 EMI is converted into a loan amount at 9% over 240 months, which works out to an eligible loan amount of approximately ₹38,90,073. Enter these same figures into the calculator above to see the identical result.
Important factors
- This is an income-based estimate only. It measures repayment capacity by income under the FOIR method — it does not account for your credit score or CIBIL history, employment stability, or any existing liabilities you didn't enter here.
- Credit score matters a great deal in practice. A strong credit history can improve the rate or FOIR a lender offers you; a weak one can reduce your actual eligibility well below this estimate.
- Every lender sets its own FOIR policy. FOIR typically ranges from 40% to 60%, and some lenders allow a higher FOIR for higher income brackets. Two lenders can produce noticeably different eligible amounts for the same applicant.
- The specific loan product has its own rules. Home loans, personal loans, car loans and business loans each carry their own eligibility criteria beyond FOIR, such as loan-to-value limits or collateral requirements.
- This estimate does not guarantee approval. Final eligibility and the sanctioned amount are determined solely by the lender after full underwriting.
Frequently Asked Questions
FOIR (Fixed Obligation to Income Ratio) is the share of your monthly income that lenders typically allow to go toward all fixed debt obligations combined, including the EMI on a new loan. It matters because it effectively caps the EMI you can be approved for, which in turn caps the loan amount — regardless of how much you want to borrow.
A strong credit score doesn't change the FOIR math directly, but many lenders offer a higher FOIR allowance, a lower interest rate, or both to applicants with an excellent credit history — any of which would increase the eligible amount this calculator computes. This tool does not model credit score, so treat the result as a starting estimate rather than a final figure.
Because each lender sets its own FOIR policy, interest rate and risk assessment. Some lenders allow a higher FOIR for higher income brackets, some weight credit score more heavily, and some apply extra buffers for existing liabilities. It's common to see meaningfully different eligible amounts from different lenders for identical income and existing EMIs.
No. This is only an estimate of income-based repayment capacity using the FOIR method. Actual loan approval and the exact sanctioned amount are decided solely by the lender, based on your credit score, employment history, documentation, the specific loan product's policies, and their own underwriting process.
A longer tenure spreads the same maximum affordable EMI over more months, so a larger principal can be serviced within that fixed EMI. However, a longer tenure also means paying more total interest over the life of the loan, so a higher eligible amount isn't automatically the better choice.
Related calculators
This calculator provides an estimate of repayment capacity based on the information entered — it is not a loan offer, a pre-approval, or a guarantee of approval. Actual loan eligibility is determined solely by the lender, based on their own underwriting criteria. See our full disclaimer.