Loan Eligibility Calculator

⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

Loan Eligibility Calculator — Find Your Maximum Loan Amount Using FOIR Norms

One of the most common frustrations in the loan application process is applying for an amount that a bank rejects because your income doesn't support it, or not applying for enough because you underestimated your eligibility. Indian banks use a standardised method — FOIR (Fixed Obligation to Income Ratio) — to calculate the maximum EMI you can afford, and then back-calculate the maximum loan principal from that EMI. This calculator uses the same methodology to give you a realistic eligibility estimate for home, personal, car, and education loans before you walk into a bank.

How to use this calculator

Enter your gross monthly income (include all sources: salary, rental income, business income). Enter your total existing EMI obligations — this includes all current loan EMIs, credit card minimum payments, and any other fixed monthly financial commitments. Select the loan type you are planning to apply for. The calculator applies the appropriate FOIR for that loan type and interest rate, showing you the maximum EMI headroom available, the maximum loan amount you qualify for, and the implied monthly EMI. Review all four loan types simultaneously to compare eligibility across different loan products.

FOIR norms used by Indian banks

Different loan products have different FOIR norms reflecting their risk profiles. Home loans typically use a 50% FOIR at approximately 8.5% interest over 20–30 years — because home loans are secured, banks are comfortable with higher obligation ratios. Personal loans use a stricter 40% FOIR at around 12% over 5–7 years because they are unsecured. Car loans fall between these at 45% FOIR at approximately 9% over 5–7 years. Education loans are treated with 50% FOIR given their investment-in-future-income nature. These are indicative norms — actual eligibility depends on your credit score (750+ is ideal), employment type (salaried vs self-employed), employer category, and the specific bank's credit policy.

Who uses this tool

First-time home buyers use it to understand their price range before starting property searches, avoiding the disappointment of falling in love with a property they can't finance. Salaried professionals use it when planning to apply for a personal loan to verify they have sufficient EMI headroom after existing obligations. Parents planning education loans use it to set realistic expectations about how much funding they can secure for their child's higher education. Financial planners use it when reviewing client loan eligibility as part of comprehensive financial planning exercises.

Privacy and data handling

All eligibility calculations run entirely in your browser — your income details, existing EMIs, and financial information are never sent to any server or shared with any third party.

Frequently asked questions

What is FOIR in loan eligibility?

FOIR (Fixed Obligation to Income Ratio) is the percentage of your gross monthly income that banks allow to go towards all loan EMIs combined. Most banks use FOIR between 40–55% depending on the loan type. A higher income generally means a slightly more lenient FOIR.

How is maximum loan amount calculated?

Maximum EMI = Monthly Income × FOIR − Existing EMIs. Then the maximum loan principal is back-calculated from this EMI using the standard EMI formula: P = EMI × [(1+r)^n − 1] / [r × (1+r)^n], where r = monthly interest rate and n = loan tenure in months.

What FOIR does the calculator use?

Home loan uses 50% FOIR with 8.5% rate over 30 years. Personal loan uses 40% FOIR at 12% over 7 years. Car loan uses 45% FOIR at 9% over 7 years. Education loan uses 50% FOIR at 9.5% over 15 years. These reflect typical Indian bank norms.

Does a higher income increase eligibility proportionally?

Yes, loan eligibility is roughly proportional to income since the maximum EMI scales linearly with income. However, existing EMIs directly reduce the available EMI headroom, so reducing existing debt before applying for a new loan significantly improves eligibility.

Can I improve my loan eligibility?

Yes. Reduce existing loans and credit card dues to lower your existing EMIs, add a co-applicant (spouse or parent) to combine incomes, opt for a longer tenure to reduce the required EMI for the same loan amount, and improve your credit score above 750.