Loan Eligibility Calculator – Know Your Borrowing Power
Before you start house hunting, you need to answer one critical question: "How much loan will the bank actually give me?" Your dream home budget depends entirely on this number.
Our Loan Eligibility Calculator is your financial compass. By evaluating your monthly income, existing EMI obligations, interest rate, and tenure, it provides an instant estimate of the maximum loan amount you can qualify for. It helps you set realistic expectations and avoid loan rejections.
What Do Banks Look For?
Banks want to ensure your ability to repay. Here are the key pillars of loan eligibility:
Net Monthly Income
This is the primary factor. Higher income means higher repayment capacity. Banks typically lend up to 60 times your net monthly salary.
Fixed Obligation to Income Ratio (FOIR)
Banks ensure that your total EMIs (including the new one) do not exceed 40-50% of your net income. Lower existing debt means higher eligibility.
Credit Score (CIBIL)
A score of 750+ is the gold standard. It proves your creditworthiness and can even fetch you a lower interest rate, increasing your eligibility.
Loan Tenure
A longer tenure reduces your monthly EMI, thereby increasing your eligibility amount. However, it also increases the total interest you pay over time.
Frequently Asked Questions (FAQs)
How can I increase my loan eligibility?
You can boost your eligibility by: 1. Adding a co-applicant (spouse/parent) with a steady income. 2. Clearing existing debts to improve your FOIR. 3. Opting for a longer tenure. 4. Mentioning additional sources of income (rent, bonus).
Does age affect loan eligibility?
Yes. Younger applicants (20s and 30s) can get longer tenures (up to 30 years), which increases their eligibility. Older applicants closer to retirement have fewer earning years left, leading to shorter tenures and lower eligibility.
What is a co-applicant?
A co-applicant is a person who applies for the loan with you, usually a spouse or immediate family member. Their income is clubbed with yours to calculate the total eligibility, and they are equally liable for repayment.
Is the eligibility amount the final loan amount?
Not necessarily. The eligibility calculator shows the maximum amount you can borrow based on income. However, the final sanctioned amount also depends on the property's value (LTV ratio), legal verification, and the bank's internal policies.
Does changing jobs affect eligibility?
Frequent job changes can be seen as instability. Banks prefer applicants with at least 2-3 years of total work experience and at least 1 year in the current organization. However, if the job change comes with a salary hike, it can positively impact eligibility.