Loan Eligibility Calculator: Estimate Your Possible Loan Amount

Most lenders use methods such as FOIR (Fixed Obligation to Income Ratio) to assess repayment capacity. FOIR represents the portion of your income used to pay existing EMIs along with the potential new EMI. Many institutions prefer that your total EMI obligations remain within a certain percentage of your monthly income.

For example, if your monthly income is ₹1,00,000 and a lender considers 50% of income as a comfortable limit for EMIs, then your total EMI capacity may be around ₹50,000. If you already pay EMIs of ₹15,000, the remaining EMI capacity would be the difference. Based on this, lenders estimate the probable loan amount for a chosen tenure and interest rate.

Different lenders may follow different internal guidelines, which means eligibility estimates can vary. The calculator provides an approximation to help with early planning.

Several elements affect how lenders assess eligibility:

Income: Monthly take-home income is one of the primary considerations. Some lenders may also consider documented additional income sources.

Existing EMIs: Current repayment obligations reduce available EMI capacity. Reducing existing debt may increase eligibility.

Credit History: A strong credit record often helps during assessment. A credit score is one of several indicators lenders consider when evaluating risk.

Age: Borrowers with more working years remaining may have access to longer possible tenures.

Employment Profile: Consistent employment history or stable business income can be helpful in eligibility assessments.

Co-applicant Income: Adding an eligible co-applicant may allow lenders to consider combined income for assessment.

The tool helps provide an estimated loan amount based on commonly used lending calculations:

Step 1: Enter your monthly take-home income. If self-employed, use average monthly income after expenses.

Step 2: List your existing monthly EMIs, such as personal loans, vehicle loans, or other commitments.

Step 3: Choose a probable interest rate and loan type. Different loan categories often have different market rates.

Step 4: Select a preferred loan tenure. Longer tenures reduce EMI amounts and may increase estimated eligibility.

Step 5: View the estimated loan amount. This figure is an approximation and actual lender evaluation may differ.

If your estimated eligibility seems lower than expected, here are some general approaches individuals often consider:

Reducing existing EMIs: Closing small loans may help free up EMI capacity.

Applying with a co-applicant: When applicable, combined income may improve the overall profile.

Improving credit behavior: Paying bills on time and maintaining low credit utilization may help strengthen credit health over time.

Choosing a longer tenure: Lower monthly EMIs may increase estimated eligibility in calculations.

Providing documented additional income: Rental income or other verifiable income sources may sometimes be considered.

Comparing lenders: Eligibility criteria differ across institutions, so estimates may vary.

An eligibility estimate is not the same as loan approval. Approval depends on multiple factors, including document verification, property or asset evaluation (where applicable), employment stability, credit history, and lender-specific policies.

The calculator offers a useful approximation to help in early planning, but lenders may approve a different amount after detailed assessment. It’s also helpful to note that eligibility checks on our tool do not involve credit bureau inquiries.

Once you have an estimate, you may compare offers from different institutions to understand interest rates, processing charges, and other terms before proceeding.