Loan Eligibility Calculator
Use this free loan eligibility calculator to find out exactly how much you can borrow — based on your income, existing EMIs, and loan tenure. No guesswork, no branch visit required.
Loan Eligibility Calculator
Calculate your borrowing limit based on your unique financial profile
Financial Profile
Standard bank FOIR is 50%. Adjust this to see how higher limits affect your loan power.
Loan Eligibility Result
Maximum Loan Possible
0
Eligible Monthly EMI
0
How to Use This Loan Eligibility Calculator (and Download Your Report)
Five inputs. Each one changes the output significantly.
Monthly Income: Enter your net monthly income, take-home after PF, TDS, and any other deductions. Not CTC, not gross. If you’re salaried at ₹80,000 CTC but your in-hand is ₹62,000, use ₹62,000. More on why this matters below.
Existing EMIs: Enter the total of all current monthly obligations: car loan, personal loan, credit card minimum payments. Even a ₹5,000 EMI eats into your eligibility more than you’d expect.
Interest Rate: Use the rate the lender has quoted you, or the current prevailing rate for your loan type. For home loans in early 2025, SBI’s repo-linked rate starts at 8.50%; for personal loans, it ranges from 10.5% to 15%+ depending on your profile.
Loan Tenure: Enter in years. Longer tenure increases your eligible loan amount — but increases your total interest burden significantly.
Hit Calculate. Your eligible loan amount appears instantly.
Download Your Report: Once you’ve run your numbers, use the Download Report button to save a full PDF summary of your eligibility estimate — including the income-to-EMI ratio breakdown, your maximum eligible loan amount, and projected monthly outgo. This report is yours to keep, share with a co-applicant, or compare across lenders. No login required, no data stored.
A downloaded eligibility report also lets you approach lenders with a pre-calculated position — which means the conversation starts from your number, not theirs.
A Real India Example
A Bengaluru-based IT professional, net monthly income ₹75,000, existing car loan EMI of ₹8,500, targeting a home loan at 8.75% over 20 years. The calculator outputs an eligible loan amount of approximately ₹37.4 lakh.
Increase the tenure to 25 years: eligible amount jumps to ₹41.2 lakh. Remove the car loan EMI: it goes to ₹46.1 lakh. Three variables, three very different outcomes. The calculator shows you all of them in under 30 seconds.
Increase the tenure to 25 years: eligible amount jumps to ₹41.2 lakh. Remove the car loan EMI: it goes to ₹46.1 lakh. Three variables, three very different outcomes. The calculator shows you all of them in under 30 seconds.
A Real US Example
Annual gross income $72,000 ($6,000/month), existing student loan payment $380/month, targeting a mortgage at 6.8% over 30 years.
Standard debt-to-income (DTI) limit at 43% (per Fannie Mae qualified mortgage guidelines) caps total monthly debt at $2,580.
After the $380 existing obligation, the maximum new mortgage payment is roughly $2,200/month — which corresponds to an eligible loan of approximately $330,000.
The Formula Behind the Number (Without the Math Class)
The calculator runs on two limits applied simultaneously, whichever is lower becomes your ceiling.
FOIR — Fixed Obligation to Income Ratio. Most Indian lenders cap this at 40–50% of net monthly income. If you earn ₹60,000 net, your total EMI obligations — old and new combined — can’t exceed ₹24,000–₹30,000/month. Your existing EMIs reduce what’s left for the new loan.
LTV — Loan-to-Value Ratio. For home loans, lenders won’t typically exceed 75–90% of property value (RBI circular on LTV caps, 2020). This limits how much you can borrow regardless of your income.
The eligible amount the calculator gives you is the maximum loan whose EMI fits inside your FOIR headroom. It doesn’t factor in LTV — that comes into play when you bring a specific property to the table.
Scratch that. The number that matters more than the eligible amount itself is the FOIR headroom figure — how much monthly obligation space you have left. Because that’s what actually determines whether your application gets approved.
What Lenders Actually Check That This Calculator Can’t
The calculator gives you a strong directional answer. It won’t replicate what a credit officer does.
CIBIL Score: A score below 700 gets you a rejection or a rate that adds 1–2% to what you modeled. Above 750 is where most competitive rates begin. Above 800 and some lenders actively improve their offer. The calculator assumes a standard credit profile — adjust your expectations if yours isn’t.
Employment type and stability: PSU banks like SBI and Bank of Baroda prefer salaried applicants with at least 2 years of continuous employment. Self-employed borrowers need 3 years of ITR filed and a profitable business history.
Property type and location: Lenders in Tier-2 and Tier-3 cities sometimes apply a lower LTV. A property in Patna or Raipur may get 75% LTV financing where the same borrower in Mumbai gets 85%.
And here’s the thing that almost nobody tells you before you run a loan eligibility check: a formal application triggers a hard inquiry on your CIBIL report.
Too many of these in a short window — even from rejected applications — lower your score by 5–10 points each time.
Using this free loan eligibility calculator (and downloading your report) before applying gives you a documented estimate without leaving any mark on your credit file.
How Income Type Changes Your Eligible Amount
| Applicant Type | Income Used by Lender | Typical FOIR Cap | Notes |
|---|---|---|---|
| Salaried (PSU Bank) | Net Monthly Income | 40–50% | PF, TDS deducted first |
| Salaried (Private Bank/NBFC) | Gross Monthly Income | 50–55% | Higher headline eligibility |
| Self-Employed (Business) | Average net profit (last 2–3 ITRs) | 50–60% | Depreciation add-backs allowed |
| Self-Employed (Professional) | Gross professional receipts | 50–55% | Doctors, CAs, architects |
| NRI Applicant | Net overseas income (post-tax) | 40–50% | FX conversion at RBI reference rate |
The same gross income of ₹1 lakh/month generates different eligible amounts across these categories — sometimes varying by ₹10–15 lakh on a home loan. PSU banks aren’t necessarily worse; they’re just using a different income base.
Four Things People Get Wrong When Using a Loan Eligibility Calculator
Using CTC instead of net income. CTC-to-in-hand can be a 20–30% gap for salaried employees with employer PF contributions, gratuity loading, and variable components. Entering CTC inflates your estimated eligibility. When the bank uses your salary slip instead, the number drops and your application gets flagged for re-evaluation.
Ignoring existing credit card obligations. Credit card outstanding balances aren’t just a balance — the minimum payment (usually 5% of the outstanding) counts as a fixed obligation in FOIR calculation. A ₹1.5 lakh outstanding on a card means ₹7,500/month off your FOIR headroom. Most people don’t model this.
Treating the eligible amount as a safe borrowing limit. The calculator’s output is what the bank might approve. It doesn’t mean it’s what you should borrow. At maximum eligible utilization, your finances have no slack — a medical expense, a job change, a rent revision, and you’re in trouble. A practical rule: target 70–80% of the eligible amount and leave yourself room.
Not re-running after clearing a loan. If you’ve paid off a car loan or personal loan in the last 6 months, your FOIR headroom has expanded. Re-run the eligibility calculator with your current obligations, not what you had when you last checked. The difference can be ₹5–10 lakh on a home loan.
FAQ on Education Loan Eligibility Calculator
Disclaimer: This loan eligibility calculator provides an estimate based on the inputs you enter and standard lending benchmarks. Results are indicative only and do not constitute a formal loan offer or guarantee of approval. Actual eligibility may vary depending on your credit score, lender policies, and income verification. Always confirm final figures directly with your lender before making a financial decision.
