Loan Eligibility Calculator
Before you walk into a bank, get a rough idea of how much loan you're likely to get. This uses the standard FOIR method (50% of income) that most Indian banks follow to decide loan eligibility.
How to use
- Enter your monthly take-home salary after all deductions.
- Add any EMIs you're already paying - car loan, personal loan, credit card, whatever.
- Enter the interest rate and tenure your bank is likely to offer.
- Hit Calculate to see the loan amount you'd likely qualify for.
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Loan eligibility is primarily determined by your income, existing debt obligations, credit score, age, and employment type. Most Indian banks use a metric called FOIR (Fixed Obligation to Income Ratio), they cap your total monthly EMI obligations (including the new loan) at 40–50% of your net monthly income. So if you earn ₹80,000/month, your total EMIs should not exceed ₹32,000–₹40,000.
Beyond FOIR, lenders also consider your credit score (a CIBIL score of 750+ gets the best rates), job stability, employer category (government/PSU vs. private), and the loan-to-value ratio for secured loans. Age matters too, for a home loan, most banks require the loan to be fully repaid before age 60–65.
Frequently Asked Questions
How much home loan can I get on a ₹50,000 salary?
Typically 55–60 times your monthly salary for a home loan. On ₹50,000/month, you could be eligible for approximately ₹27.5–30 lakh, assuming no existing EMIs and a 20-year tenure at around 8.5%. A higher salary, longer tenure, or co-applicant can increase eligibility.
What is FOIR and how does it affect loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that goes toward existing EMIs. Most banks allow a FOIR of 40–50%. If you already have EMIs of ₹20,000 on a ₹60,000 income, your FOIR is 33%, leaving room for more debt. Reducing existing EMIs improves your loan eligibility.
Does credit score affect loan eligibility?
Yes, significantly. A CIBIL score of 750+ gets you the best interest rates and maximum eligibility. A score of 650–750 may get approval at higher rates. Below 650, most banks will reject the application. Check your CIBIL score for free once a year at cibil.com.
Can I improve my loan eligibility?
Yes: add a co-applicant (spouse or parent) to combine incomes, close existing small loans or credit card balances to reduce FOIR, improve your credit score by paying bills on time, and choose a longer tenure to reduce the EMI per lakh.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.