How is loan eligibility calculated?

Banks use FOIR (Fixed Obligation to Income Ratio). Typically 40 to 50% of your monthly income can go toward EMIs. We subtract existing EMIs and calculate the maximum loan amount from what remains.

FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your monthly income that banks allow for all loan EMIs combined. Most lenders use 40 to 50%.

Does this guarantee loan approval?

No. This is an indicative estimate. Final approval depends on your credit score, employment type, property value, and the lender's internal policies.

← All tools

Loan Eligibility Checker

Find out how much loan you can get based on your monthly income and existing obligations. Uses the standard FOIR method that banks follow.

Monthly income₹50,000

Existing monthly EMIs₹0

Expected interest rate (p.a.)9.0%

Desired tenure60 months

Eligible loan amount

₹10,83,901

Available for EMI

₹22,500/mo

FOIR used

45%

45% of income available for EMI payments

Check your actual eligibility

Indicative estimate based on 45% FOIR (Fixed Obligation to Income Ratio). Final approval depends on credit score, employment type, existing obligations, and lender policy.

What is FOIR?

FOIR (Fixed Obligation to Income Ratio) is the percentage of monthly income banks allow for all EMIs combined. Most Indian lenders cap it at 40 to 50%. This calculator uses 45% as a standard estimate.

How eligibility is calculated

The calculator takes your monthly income, multiplies it by the FOIR percentage (45%), then subtracts your existing EMI obligations. The remaining amount is what banks consider available for a new EMI. It then reverses the EMI formula to find the maximum loan principal that monthly payment can support, given the interest rate and tenure you set.

Documents lenders check

Income proof (salary slips or ITR)
Bank statements (3 to 6 months)
PAN card and Aadhaar
Existing loan statements
Property documents (for secured loans)

How to improve eligibility

Pay off or reduce existing EMIs
Add a co-applicant with income
Increase tenure for a lower EMI obligation
Improve your credit score over time

Browse loan products →

Personal Loan Business Loan Home Loan EMI Calculator Eligibility Checker Apply now

Ready to apply? Apply now · WhatsApp us

Loan Eligibility Checker

Related

Loan Eligibility Checker

Related