Loan Eligibility Calculator

Enter your net monthly income, any EMIs you already pay, the interest rate and the tenure you want. The calculator applies a FOIR limit (the share of income a lender lets you commit to EMIs) and works back to the loan that EMI supports.

How to use the loan eligibility calculator

1. Net monthly income: your take-home salary after tax, PF and other deductions, as shown on your salary slip or credited to your bank account. Indian lenders work from net income. If a co-applicant’s income will be included, add it.
2. Existing loan payments per month: the EMIs you already pay on car loans, personal loans, education loans, other home loans and consumer durable loans. Many lenders also count 5% of your credit card outstanding as a monthly obligation.
3. Interest rate: the rate you expect on the new loan.
4. Tenure: the years you want to repay over. Lenders cap it by your age, usually so the loan ends by 60 for salaried applicants or 65 to 70 for self-employed ones.
5. FOIR: the share of net income the lender lets you spend on all EMIs together. The default is 50%.

The result shows the estimated loan eligibility, the highest new EMI, the total interest on that loan and the income left after all EMIs.

How the estimate is worked out

FOIR stands for fixed obligations to income ratio. The calculator takes your net income times the FOIR, subtracts the EMIs you already pay, and treats what is left as the most you can pay on the new loan. It then works the EMI formula backward to find the loan that EMI supports at your rate and tenure.

With the defaults, ₹1,00,000 a month of net income, no other EMIs, 50% FOIR, 8.5% and 20 years:

• 50% of ₹1,00,000 is ₹50,000, the highest EMI allowed.
• At 8.5% over 20 years, an EMI of ₹50,000 supports a loan of about ₹57.6 lakh.

Add a ₹15,000 car loan EMI and the room falls to ₹35,000, which supports only about ₹40.3 lakh. That one EMI cuts your eligibility by about ₹17 lakh. Closing a small loan before you apply often helps more than anything else.

FOIR limits in India

Each lender sets its own FOIR policy, usually by income band:

Net monthly income	Typical FOIR
Up to about ₹50,000	40% to 45%
₹50,000 to ₹1,00,000	45% to 50%
Above ₹1,00,000	50% to 60%

Salaried applicants at large employers, government staff and borrowers with high credit scores tend to get the upper end. Self-employed borrowers are assessed on income from their ITRs, usually averaged over two or three years, and some lenders apply a lower ratio to them.

Try the calculator at 40%, 50% and 55% to see the range. On ₹1 lakh of income at 8.5% over 20 years, 40% FOIR supports about ₹46.1 lakh and 50% about ₹57.6 lakh.

The property value also caps a home loan

For a home loan, the loan cannot exceed a share of the property value set by RBI, called the loan-to-value (LTV) limit:

• Up to 90% for loans up to ₹30 lakh.
• Up to 80% for loans above ₹30 lakh and up to ₹75 lakh.
• Up to 75% for loans above ₹75 lakh.

Stamp duty and registration charges are generally not counted in the property value for this purpose. So even if your income supports ₹57.6 lakh, a ₹60 lakh flat will get at most ₹48 lakh at 80% LTV, and you need the rest as a down payment plus stamp duty and registration on top.

Personal and car loans

The same method applies to other loans, with different limits. Personal loan lenders often use a lower FOIR for new customers and look closely at your credit score, since the loan is unsecured. Tenures are short, usually up to five years, so the same EMI supports a much smaller loan: ₹20,000 a month at 12% for 5 years supports about ₹9 lakh. Car loans are usually capped at 80% to 90% of the on-road price, and some lenders fund up to the full ex-showroom price for strong applicants. Enter the tenure and rate for that loan type to see a realistic figure.

What else lenders check

FOIR is one test. A lender will also look at:

• Credit score. A CIBIL score of 750 or more usually gets the best rates. A lower score can mean a higher rate or a lower FOIR, both of which reduce eligibility.
• Age and retirement date, which limit the tenure.
• Employer category. Many banks rate employers and allow more to staff of listed companies, PSUs and government bodies.
• Job stability, usually at least two years of work experience and six months to a year with the current employer.
• For self-employed borrowers, ITRs, audited financials and bank statements, and often business vintage of three years or more.
• The property’s legal title and the builder’s approvals.

Treat the result as the upper limit of what is possible. Then use the EMI calculator to see the EMI on the amount you actually want, and the loan amortization schedule to see how it pays down.

Example: a couple applying together

A salaried applicant takes home ₹1,50,000 a month, including a co-applicant’s salary, and the couple pays a ₹20,000 car EMI. At 50% FOIR, 8.5% and 20 years:

• 50% of ₹1,50,000 is ₹75,000.
• After the car EMI, ₹55,000 is left for the new loan.
• ₹55,000 a month supports about ₹63.4 lakh.

If they close the car loan first, the full ₹75,000 is available and eligibility rises to about ₹86.4 lakh. If instead they negotiate the rate down to 8.0%, eligibility rises to about ₹65.8 lakh. Clearing the car loan does far more than a better rate. A co-applicant also helps with tax under the old regime, since each co-owner who is also a co-borrower can claim the home loan deductions separately.

How much should you borrow?

Lenders set FOIR to manage their risk, not your budget. A 50% FOIR leaves half your take-home pay for rent or maintenance, school fees, insurance, investments and daily costs. Many families are more comfortable keeping all EMIs under 35% to 40% of take-home pay. Before deciding:

• List your fixed monthly costs that are not EMIs.
• Keep an emergency fund of at least six months of EMIs and expenses.
• Budget for maintenance charges, property tax and home insurance.
• Test a rate one point higher, since floating rates can rise.

How to improve your eligibility

• Close or prepay small loans with high EMIs, and pay credit card balances in full.
• Add an earning co-applicant, such as a spouse or parent.
• Choose a longer tenure. At 25 years instead of 20, ₹50,000 a month supports about ₹62.1 lakh instead of ₹57.6 lakh, at the cost of much more interest.
• Show all regular income, such as rent or variable pay, with documents. Lenders count part of it.
• Improve your credit score before applying by paying on time and keeping card use low.
• Compare several lenders, since FOIR rules and rates differ.

If you already have a home loan, a cheaper rate through a balance transfer can reduce your existing EMI and free up room for a new loan.

The estimate is calculated in your browser. Your income and EMIs are not sent anywhere.

Frequently asked questions

How much home loan can I get on a ₹50,000 salary?

On ₹50,000 of net monthly income with no other EMIs, a 45% FOIR allows an EMI of about ₹22,500. At 8.5% over 20 years that supports a loan of roughly ₹26 lakh. At 40% FOIR the figure is about ₹23 lakh. The property value must also allow it under the LTV limits.

What is FOIR?

FOIR, the fixed obligations to income ratio, is the share of your net monthly income that goes to EMIs and other fixed loan payments, including the new loan. Lenders cap it, usually between 40% and 60%, so that enough income is left for living costs. It is the Indian version of the debt-to-income ratio.

Do lenders use gross or net income in India?

Most banks and housing finance companies use net take-home income for salaried borrowers. For self-employed borrowers, they use income from ITRs, usually after adding back depreciation and some other items. Check with the lender, because a few use gross income with a lower FOIR, which gives a similar result.

Does my credit card count as an existing EMI?

Often yes. Many lenders count 5% of the outstanding card balance as a monthly obligation even if you pay in full. EMI conversions on a card count at their full EMI. Paying the card balance down before you apply can raise your eligibility.

Can I get a home loan for 100% of the property price?

No. RBI’s LTV limits cap the loan at 75% to 90% of the property value depending on the loan size. You need to pay the rest as a down payment, along with stamp duty and registration, which lenders generally cannot fund as part of the home loan.

Why is the bank’s offer lower than this estimate?

Lenders combine FOIR with other checks: credit score, age, employer category, the property’s value and legal status, and their own internal limits. Any of these can lower the sanctioned amount. The estimate here is the ceiling set by income and existing EMIs alone.