Loan Eligibility Calculator
The maximum loan your income and existing EMIs can support.
How the lender arrives at this number
| Step | Amount |
|---|---|
| Net monthly income | ₹1,00,000 |
| FOIR cap (50% of income) | ₹50,000 |
| Less: existing EMIs | ₹0 |
| Max affordable EMI | ₹50,000 |
| Eligible loan amount | ₹57,61,542 |
| Total repayment over 20 years | ₹1,20,00,000 |
Loan eligibility is the largest loan a lender will sanction you, worked out from how much EMI your income can safely carry. Banks cap all your EMIs together at a share of monthly income called FOIR — typically 40–60%. Enter your income and existing EMIs above to see your number instantly.
This calculator runs the EMI formula backwards: it first finds the EMI you can afford, then works out the loan amount that EMI would repay at the rate and tenure you choose. It is the same arithmetic a bank's underwriting system uses, so it is a realistic starting point before you apply.
How lenders calculate loan eligibility
Step one is the affordable EMI: monthly income × FOIR% − EMIs you already pay. Step two inverts the standard EMI formula to find the principal that EMI supports: P = EMI × ((1 + r)ⁿ − 1) ÷ (r × (1 + r)ⁿ), where r is the monthly rate (annual ÷ 12 ÷ 100) and n the tenure in months.
For a net monthly income of ₹1,00,000 with no existing EMIs, a 50% FOIR and a 20-year loan at 8.5%: the affordable EMI is ₹50,000, r = 0.00708 and n = 240, which supports a loan of about ₹57,61,542. Over the full tenure you would repay ₹1,20,00,000, of which ₹62,38,458 is interest. Add a ₹20,000 existing EMI and the affordable EMI drops to ₹30,000, cutting eligibility by roughly 40%.
How to use this calculator
- Enter your net monthly income — take-home pay after tax and PF, not CTC.
- Add every EMI you currently pay, including car, personal and credit-card instalments.
- Set the interest rate and tenure your lender is offering.
- Adjust FOIR to match the lender's policy: 50% is a safe default, high earners often get 60–65%.
- Open the step table to see exactly how the income cap turns into a loan amount.
What Indian lenders actually look at
FOIR is only half the decision. For home loans the bank also applies a loan-to-value cap set by the RBI — up to 90% of property value for loans below ₹30 lakh, 80% up to ₹75 lakh and 75% above that — so your sanction is the lower of the FOIR-based and LTV-based amounts. You must fund the rest as down payment plus stamp duty and registration, which are excluded from the loan.
Your CIBIL score matters just as much: a score above 750 usually gets the advertised rate, while below 700 either raises your rate or shrinks the sanction. Age caps the tenure too, since most banks want the loan closed by 60–65 years. Adding an earning spouse or parent as a co-applicant pools both incomes and can lift eligibility substantially, and a longer tenure raises the sanctioned amount but costs far more interest overall.
Frequently asked questions
What is FOIR in loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the share of your monthly income a lender allows you to spend on all EMIs combined. Most Indian banks work with 40–60%; the higher your income, the higher the FOIR they permit, because a bigger absolute surplus is left for living costs.
Does the bank use my gross salary or take-home pay?
Lenders assess net monthly income — salary after income tax, PF and professional tax, as it appears in your bank statement. Reimbursements and one-off bonuses are usually excluded, while stable variable pay may be counted at 50% or averaged over two years.
How can I increase my loan eligibility?
Close or consolidate small existing EMIs, add a co-applicant with steady income, choose a longer tenure, or improve your credit score before applying. Declaring rental or other documented income also helps, though lenders typically count only 70–80% of rent received.
Is my eligible amount the same as my sanctioned amount?
Not always. For a home loan the bank sanctions the lower of your income-based eligibility and the RBI loan-to-value cap on the property, which is 75–90% of its value depending on the loan size. Legal and technical checks on the property can reduce it further.
Do existing credit-card dues affect eligibility?
Yes. Lenders add roughly 5% of your outstanding card balance to your monthly obligations, and any card EMI plan counts in full. Clearing card balances a couple of months before you apply improves both your FOIR headroom and your credit score.
How much home loan can I get on a ₹50,000 salary?
At a 50% FOIR with no other EMIs, an affordable EMI of ₹25,000 supports roughly ₹28.8 lakh over 20 years at 8.5%. Stretching to 30 years or adding a co-applicant raises it, but the property's loan-to-value cap and your down payment capacity still apply.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.