fact_check Finance By NF360
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Loan Eligibility Calculator

Discover your borrowing capacity. Calculate your maximum eligible loan amount based on your income, current debts, and bank lending guidelines.

account_balance_wallet Financial Profile

Take-home salary after taxes/deductions.

Current car loans, personal loans, etc.

Yr
Mo

Eligible Loan Amount

₹0

Max Affordable EMI

₹0

Remaining Income

₹0

Income Breakdown

  • Existing Debt
  • New Loan EMI Capacity
  • Take-Home Cash

Eligibility Assessment Parameters

Net Monthly Income ₹0
Bank Debt Burden Limit (FOIR: 50%) ₹0
Existing EMIs Deducted - ₹0
New Affordable EMI ₹0

How Does a Loan Eligibility Calculator Work?

Before a bank sanctions a Home Loan or Personal Loan, they run an assessment to ensure you have the repayment capacity. A Loan Eligibility Calculator mirrors the exact mathematical algorithms used by banks to determine how much money they can safely lend you.

Understanding FOIR (Fixed Obligation to Income Ratio)

FOIR is the most critical metric banks use. It dictates what percentage of your net monthly income can be consumed by debts. Generally, conservative lenders prefer a FOIR of 50%. This means if you earn ₹100,000 a month, your total combined EMIs (including existing loans and the new loan) cannot exceed ₹50,000.

The Reverse EMI Calculation

Once the bank determines your Max Affordable EMI (e.g., ₹25,000), they use the reverse EMI formula along with your requested interest rate and loan tenure to calculate the total lump sum they can lend you. Extending your loan tenure reduces the monthly EMI burden, thereby increasing your total eligible loan amount.

Frequently Asked Questions

How can I increase my loan eligibility? expand_more
There are three primary ways to increase your loan eligibility: 1) Extend the Tenure: Choosing a 25-year loan instead of a 15-year loan significantly boosts eligibility. 2) Add a Co-Applicant: Adding a working spouse combines both incomes for the FOIR calculation. 3) Clear Existing Debts: Prepaying a small personal or car loan frees up monthly EMI capacity.
Does my CIBIL Score affect loan eligibility? expand_more
Yes! While this mathematical calculator handles income constraints, your CIBIL (credit) score acts as the gateway. Even if your income makes you eligible for ₹1 Crore, a bank will reject the application if your credit score is below their minimum threshold (usually 700-750).