A loan eligibility calculator helps you determine the maximum loan amount you can avail based on your income, existing obligations, and lender criteria. By entering your income, expenses, and loan details, you can instantly calculate your eligible loan amount and EMI. This tool is essential for loan planning and understanding your borrowing capacity.
The loan eligibility is calculated using the FOIR (Fixed Obligation to Income Ratio) method:
Loan Amount = EMI × [((1 + r)n - 1) / (r × (1 + r)n)]
Where:
Loan eligibility is the maximum loan amount a lender is willing to sanction based on your income, credit profile, and existing obligations.
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that goes toward fixed obligations including the proposed EMI.
Net income is your take-home salary after deducting taxes, EPF, and other deductions, while gross income is your total salary before deductions.
A debt-to-income ratio below 40-50% is considered healthy for loan approval.
You can improve eligibility by increasing income, reducing existing debts, improving credit score, or adding a co-applicant.
No, eligibility is an estimate. Final approval depends on credit score, documentation, and lender's internal policies.
Yes, adding co-applicants can increase your loan eligibility by combining incomes and improving the debt-to-income ratio.
A higher credit score (750+) improves eligibility and helps secure better interest rates and terms.
Common documents include identity proof, address proof, income proof, bank statements, and employment details.
Yes, most banks and financial institutions offer online eligibility calculators for instant estimates.