Loan Eligibility Calculator
Estimate the maximum loan amount you qualify for based on your income and existing obligations.
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What is a Loan Eligibility Calculator?
A Loan Eligibility Calculator helps you determine the maximum loan amount a bank is likely to lend you. Lenders look at your Net Monthly Income (NMI) and your Fixed Obligation to Income Ratio (FOIR) to decide your repayment capacity. This tool gives you a realistic estimate before you apply.
How It Works
The calculator subtracts your existing EMIs from your monthly income to find your 'Available Surplus'. It then calculates how much loan EMI this surplus can support for a given tenure and interest rate.
Max EMI Capacity = (Net Income * FOIR%) - Existing EMIs
Max Loan Amount = PV(Rate, Tenure, Max EMI)
Example Calculation
Scenario
You earn ₹50,000/month and have an existing car loan EMI of ₹5,000.
- 1.Net Income = ₹50,000
- 2.Bank's FOIR Limit = 50% (Standard)
- 3.Max Allowed EMI = ₹25,000
- 4.Less Existing EMI = ₹5,000
- 5.Available for New Loan = ₹20,000
- 6.Max Home Loan (20 yrs @ 8.5%) ≈ ₹22-23 Lakhs
Why This Tool is Useful
- ✓Prevents loan rejection due to low eligibility.
- ✓Helps you plan your budget and down payment.
- ✓Shows how clearing existing debts can increase eligibility.
- ✓Allows you to adjust tenure to fit the loan amount.
- ✓Saves time by giving an instant estimate.
Tips & Comparison
- •Add a Co-applicant: Adding a working spouse or parent as a co-applicant combines incomes and significantly boosts eligibility.
- •Clear Debts: Paying off small loans or credit card dues frees up your FOIR and increases your loan capacity.
- •Longer Tenure: Opting for a longer tenure reduces the EMI, thereby increasing the loan amount you are eligible for (though you pay more interest).
- •Variable Pay: Banks may only consider 50% of your variable pay/bonuses for eligibility.