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Loan Eligibility Calculator
Estimate the maximum loan amount you might be eligible for based on your income, expenses, and other financial factors. A helpful tool for planning your finances before applying for a loan.
About This Tool
This calculator provides an estimation of the loan amount you might be approved for by a lender. It considers your disposable income after expenses and existing debts, along with the desired loan term and interest rate, to determine your borrowing capacity.
How to Use This Tool
- Enter your net (take-home) monthly income.
- Provide an estimate of your total monthly expenses (rent, utilities, etc.).
- If you have other ongoing loans, enter the total of their monthly EMIs.
- Specify the desired loan tenure in years and the expected annual interest rate.
- Click "Check Eligibility" to see the approximate loan amount you may qualify for.
Frequently Asked Questions
What is the FOIR or DTI ratio?+
FOIR (Fixed Obligation to Income Ratio) or DTI (Debt-to-Income) ratio is a key metric banks use. It's the percentage of your monthly income that goes towards fixed obligations like EMIs. Lenders usually prefer a ratio below 50%, which this calculator assumes for its estimation.
How can I improve my loan eligibility?+
You can improve your loan eligibility by increasing your income, paying off existing debts to reduce your FOIR, maintaining a good credit score, and choosing a longer loan tenure. Adding a co-applicant with a good income can also significantly boost your eligibility.
Is this calculator's result a guarantee of loan approval?+
No, this is an estimation tool based on common industry standards. The final loan amount, interest rate, and approval are at the sole discretion of the lender, who will perform a detailed assessment of your credit history, income stability, and other factors.