Loan Eligibility Calculator

What this eligibility estimate covers

This calculator answers “how much might I qualify for?” under a plain FOIR capacity sketch. It is for first-home capacity checks, people trying to free headroom by cutting existing EMIs and anyone stress-testing income before EMI shopping.

It does not answer “what EMI can I live with?” (that is affordability) and it does not turn a known principal into an instalment (that is an EMI tool). Swap the page name to affordability or EMI and these paragraphs stop making sense: the job here is income-and-obligation capacity, not comfort budgeting or schedule maths from a fixed ticket.

How FOIR works on this page

FOIR means Fixed Obligation to Income Ratio: the share of monthly income a lender may allow for EMIs and similar obligations. Many retail products land somewhere around 40–55% in practice. This runtime uses 50% and does not let you change that percent.

At ₹50,000 income with zero obligations, FOIR capacity is ₹25,000 of EMI room (50% of 50,000). That available EMI is then turned into an estimated max loan for your rate and tenure.

Use take-home income, not CTC

Enter monthly money that actually lands after PF, tax and other payroll deductions. Gross CTC overstates capacity and inflates the estimate.

If you only know annual CTC, convert to realistic in-hand first. The salary calculator helps sketch take-home before you paste a number here. Self-employed borrowers should use a stable monthly surplus they can document, not a one-off peak month.

What to include in obligations

Put every fixed monthly debt payment that reduces FOIR headroom: home, car, personal or education EMIs already running, gold-loan instalments and similar contractual dues. Credit-card minimum dues that you treat as recurring also belong here if a lender would count them.

Do not put rent, school fees or groceries into obligations on this tool. Those matter for comfort on the affordability side, but this sketch only subtracts the obligation field you enter from FOIR capacity.

Eligibility vs affordability

Eligibility asks what a FOIR-style formula might allow. Affordability asks whether that EMI still leaves room in the household budget after rent, fees and a buffer.

A high max loan here can still feel tight month to month. Run eligibility first for capacity, then affordability for comfort, then an EMI calculator once you have a ticket size. Do not treat max eligibility as the amount you should borrow.

What the default result means

Using the page defaults on first load (income ₹50,000 · obligations ₹0 · 7.5% p.a. · 20 years / 240 months), this calculator shows available EMI ≈ ₹25,000, maximum EMI ≈ ₹25,000 and maximum loan ≈ ₹31,03,303.28.

FOIR capacity is ₹25,000 per month (50% of ₹50,000). The estimated loan is about 62.1× monthly income (₹31,03,303.28 ÷ ₹50,000). That multiplier is a reading of this default sketch only, not a bank rule.

Decision angle: with no existing EMIs, the binding limit is FOIR room, then rate and tenure turn that EMI into loan size. Change the sliders for your income stress; these figures are the default page-load example only. Estimate ≠ approval.

Real-world examples

Chip presets match the scenarios below. Load a chip so the calculator lines up with the numbers. Situations cover a clean first-home capacity sketch, a shorter tenure lever, income with existing EMIs and a mid-ticket personal-style clock.

Example 1: page defaults (first-home capacity)

Situation: a salaried borrower checks housing capacity before property browsing, with no other EMIs running.

Given: load 50k · 0 · 20y: income ₹50,000 · obligations ₹0 · 7.5% p.a. · 20 years.

Result: available EMI ≈ ₹25,000 · max EMI ≈ ₹25,000 · max loan ≈ ₹31,03,303.28.

Takeaway: FOIR 50% sets ₹25,000 EMI room. At 7.5% over 20 years that capacity funds roughly ₹31.03 lakh. See the insight block above for the income multiple on these defaults.

Example 2: same income, 5-year tenure

Situation: the same ₹50,000 income and zero obligations, but the repayment clock is cut to five years (for example a shorter personal-loan style sketch).

Given: load 50k · 0 · 5y: income ₹50,000 · obligations ₹0 · 7.5% p.a. · 5 years.

Result: available EMI still ≈ ₹25,000 · max loan ≈ ₹12,47,632.70.

Takeaway: Available EMI does not change when only tenure moves. Shorter tenure lowers the present value of that EMI, so estimated max loan falls even though FOIR capacity is unchanged.

Example 3: higher income with existing EMIs

Situation: income stress after a raise, but car or personal EMIs still eat FOIR room.

Given: load 80k · 15k · 20y: income ₹80,000 · obligations ₹15,000 · 8.5% p.a. · 20 years.

Result: available EMI ≈ ₹25,000 · max loan ≈ ₹28,80,771.

Takeaway: FOIR room is ₹40,000 (50% of 80,000) minus ₹15,000 obligations = ₹25,000. Higher income does not raise eligibility if obligations absorb the extra FOIR slice.

Example 4: mid income, one existing loan, 10 years

Situation: a borrower with one running EMI checks remaining capacity on a 10-year clock.

Given: load 75k · 10k · 10y: income ₹75,000 · obligations ₹10,000 · 9% p.a. · 10 years.

Result: available EMI ≈ ₹27,500 · max loan ≈ ₹21,70,896.55.

Takeaway: FOIR capacity is ₹37,500 minus ₹10,000 = ₹27,500. Closing or reducing that ₹10,000 obligation would free the full ₹37,500 EMI room and raise estimated loan size.

What increases or decreases eligibility

On the default rate and tenure (7.5% · 20 years), three levers move capacity as follows.

Reducing existing EMIs often frees more capacity than a modest income bump, because every rupee of obligation comes straight out of FOIR room. Raising income by ₹10,000 at 50% FOIR adds ₹5,000 of EMI capacity when obligations stay zero.

How tenure and rate change max loan

Available EMI is set by income, FOIR and obligations. Rate and tenure do not change that EMI room; they change how large a loan that EMI can support.

Longer tenure raises estimated max loan for the same available EMI (more months of payments to discount). Higher rate lowers estimated max loan for the same EMI (each rupee of instalment buys less principal). On the defaults, moving from 7.5% to 8.5% keeps EMI at ₹25,000 but cuts max loan from ₹31,03,303.28 to ₹28,80,771.

Estimate is not a bank sanction

Banks and NBFCs apply product-specific FOIR bands, credit bureau checks, employment category rules, vintage requirements and (for housing) LTV caps. None of those appear in this sketch.

Treat the result as a planning number before you compare quotes. Confirm any offer against the lender’s sanction letter, not against this page alone.

Common mistakes

• Entering CTC or gross pay instead of take-home income.
• Leaving out existing EMIs or card minimums that lenders will count.
• Treating max loan as the amount you should borrow rather than a capacity ceiling.
• Confusing this page with affordability (comfort) or with EMI tools (instalment from a known principal).
• Assuming a longer tenure “improves” the loan when it only raises estimated ticket size, not monthly comfort.
• Reading the 50% FOIR here as every lender’s rule.

Tips before you shop for EMI quotes

Start with honest take-home and a full obligation list. If estimated capacity looks high, stress obligations upward and rate upward by about 0.5–1% before you treat the ticket as realistic.

If existing EMIs are the bottleneck, model a lower obligation figure only when you have a concrete plan to close or refinance that loan. Do not invent a cleaner obligation line for shopping optics.

Next steps after this estimate

Check whether the EMI implied by capacity still fits the monthly budget on the loan affordability calculator. Once you have a ticket size, run the EMI calculator, or the product pages for home loan EMI and personal loan EMI.

Confirm take-home with the salary calculator if payroll deductions are unclear. For the instalment identity behind the PV step, see how EMI is calculated.