Loan Eligibility Calculator
Banks lend against your ability to repay, not against what you would like to borrow. This works backwards from your income to the loan amount a lender is likely to approve.
How a bank decides
Lenders use a ratio usually called FOIR, the fixed obligation to income ratio. It is the share of your monthly income that may go towards servicing debt. Most banks sit between 40 and 55 percent, and they are more generous with higher incomes because someone earning ₹4,00,000 a month can spare 60 percent far more comfortably than someone earning ₹40,000 can spare 40.
Loan amount = EMI capacity × [ (1 + r)n − 1 ] ÷ [ r × (1 + r)n ]
That second line is the EMI formula run backwards. Instead of asking what a loan costs per month, it asks what monthly payment buys.
A worked example
Take home ₹1,00,000 a month, no existing loans, a bank allowing 50 percent, 8.75 percent for 20 years. Your EMI capacity is ₹50,000. Working backwards, that supports a loan of roughly ₹56,58,000. At 80 percent loan to value, that is a property of about ₹70,72,000, with the rest coming from your own pocket.
Now add a car loan of ₹15,000 a month. Capacity drops to ₹35,000 and the eligible loan falls to roughly ₹39,61,000. One car loan cost you about ₹17,00,000 of home loan headroom. If a bigger house is the goal, clearing small loans first does more than negotiating the rate.
What else the bank looks at
- Credit score. Below roughly 700 you may be declined outright or offered a materially worse rate. Check yours before applying, not after.
- Employment stability. Salaried applicants with a few years of continuous employment get the easiest treatment. Self employed applicants are usually assessed on two or three years of filed returns, and on declared profit rather than turnover.
- Age and remaining working life. The loan normally has to finish before you retire. At 45, a 30 year tenure is unlikely to be offered.
- Loan to value. For home loans, banks typically fund 75 to 90 percent of the property value depending on the amount. The rest is your down payment, and stamp duty and registration usually sit outside the loan entirely.
- The property itself. Title, approvals and the builder's standing all matter. A bank can approve you and still decline the specific property.
Eligible is not the same as sensible
This calculator tells you what a bank will probably lend. It does not tell you what you should borrow. A ₹50,000 EMI on ₹1,00,000 of take home pay is arithmetically permitted and leaves half your income for everything else, including maintenance, property tax, insurance and the emergencies that arrive on their own schedule.
A useful test: could you still pay this EMI if your income dropped 20 percent for six months? If not, borrow less than you are offered. Run the EMI calculator at a rate two percent higher than today's to see what a rate rise would do to a floating loan.
Common questions
What is FOIR?
The fixed obligation to income ratio, the share of your monthly income a bank will allow to go towards loan repayments. Most lenders work between 40 and 55 percent, with more allowed at higher income levels. Adjust the field above if you know your bank's figure.
Does a co-applicant increase eligibility?
Usually yes. If your spouse or a parent has income and joins as co-applicant, most banks combine the incomes, which raises the eligible amount substantially. They also become jointly liable for the loan, so it is a shared commitment rather than a formality.
Why is my sanctioned amount lower than this shows?
Common reasons: a credit score below the lender's threshold, income assessed on net rather than gross salary, variable pay excluded, a shorter tenure offered because of your age, or a loan to value cap on the specific property. This calculator gives an indication, not a sanction.
Do credit card balances count as existing EMIs?
Banks typically count a percentage of your outstanding credit card balance, often around 5 percent, as a monthly obligation. Clearing card balances before applying can noticeably improve your position.
Should I borrow the maximum I am eligible for?
Rarely. Eligibility is a lender's assessment of what you can survive, not what leaves you comfortable. Stamp duty, registration, furnishing and maintenance all sit outside the loan. Borrowing to the ceiling leaves nothing for the parts nobody quotes you.