Loan Eligibility Calculator

A loan eligibility calculator answers the most important question before you go shopping for property or any large purchase: how much will the bank actually lend you? Walking into a property visit without this number is the easiest way to fall in love with a home that is permanently out of your reach. A few minutes spent here will save you weeks of disappointment later.

Indian banks calculate eligibility using a metric called FOIR — Fixed Obligation to Income Ratio. The idea is simple: your total monthly EMI obligations (the new loan you are applying for, plus any existing home, car or personal loan EMIs) should not cross a certain percentage of your net monthly income. The exact percentage varies by income bracket, lender and loan type. For salaried borrowers earning above ₹1 lakh net per month, most major banks use 50-55%. Below ₹50,000 net per month, FOIR drops to 35-45%, on the logic that lower-income households need a larger absolute buffer for living expenses.

Once the bank fixes your maximum monthly EMI capacity, they back-calculate the maximum loan amount using the standard EMI formula in reverse. The variables are the rate they will charge you (which depends on your CIBIL score and profile), the tenure (typically capped at retirement age minus current age), and the EMI cap from FOIR. This is what our calculator does — you plug in your income, existing EMIs, the loan rate and tenure, and we return the maximum loan amount.

There are several practical ways to increase your eligibility. The most powerful is adding a co-applicant. If your spouse or parent earns ₹60,000 a month and you earn ₹80,000, clubbing the incomes raises FOIR-based eligibility from one income to two, typically pushing the loan amount up by 60-100%. The co-applicant should have a stable income and a good CIBIL score; a co-applicant with a poor credit history can reduce your rate of approval rather than help.

Reducing existing EMIs is the second lever. If you already pay ₹20,000 a month towards a personal loan, that ₹20,000 directly shrinks your home loan eligibility. Closing a small personal loan or credit card balance before applying for a larger home loan can swing eligibility by ₹15-25 lakh. Similarly, lenders count 5% of your total credit card outstanding as a deemed monthly obligation; a ₹3 lakh credit card balance reduces eligibility by the equivalent of a ₹15,000 EMI.

A longer tenure mechanically increases eligibility because the same EMI translates to a larger loan principal when stretched over more months. But longer tenure also means much more interest paid over the life of the loan. The right approach is to use this calculator to find the maximum eligibility at the longest tenure, then back-test what tenure your monthly budget can comfortably afford and pick the shortest one that fits.

A word of caution: just because the bank can lend you ₹70 lakh does not mean you should borrow ₹70 lakh. Eligibility is a maximum, not a recommendation. Most personal finance frameworks suggest keeping total EMI obligations under 35-40% of your net monthly income for a comfortable lifestyle, well below the FOIR ceiling. Borrowing at the maximum leaves no buffer for medical emergencies, job loss, or unplanned expenses. Use eligibility as the upper bound for what is possible; use your actual budget and goals to decide what is wise.