Loan Eligibility Calculator
Check your loan eligibility based on income.
Loan Eligibility Calculator
The Loan Eligibility Calculator estimates how much you may qualify for based on income, obligations, and repayment capacity. It gives a practical first view before formal underwriting in India, the USA, or any market that uses debt-to-income style checks. Use it to set realistic expectations and improve approval chances before applying.
What is a Loan Eligibility Calculator?
A Loan Eligibility Calculator estimates the maximum loan amount a borrower can reasonably service. Lenders often evaluate fixed obligations against monthly income using metrics like FOIR (Fixed Obligation to Income Ratio) or DTI (Debt-to-Income). This tool helps you understand borrowing capacity and align applications with lender comfort levels.
Eligibility Formula (capacity approach)
- Affordable EMI = (Monthly income × allowed FOIR/DTI) - existing EMI obligations
- r = Monthly interest rate (annual rate / 12 / 100)
- n = Number of monthly installments
Why this calculator is useful
- Sets realistic borrowing range before documentation effort
- Highlights how existing debts reduce sanctioned amount
- Helps decide whether to increase down payment
- Supports joint-loan and tenure planning conversations
- Improves negotiation with lender using objective numbers
How to use the Loan Eligibility Calculator
- Enter net monthly income and existing loan obligations.
- Choose expected interest rate and repayment tenure.
- Use lender-appropriate FOIR/DTI assumption (for example 40% to 55%).
- Review eligible loan estimate and adjust plan before applying.
Worked example
Given: Monthly income = Rs 1,00,000, Existing EMIs = Rs 15,000, Allowed FOIR = 50%, Interest = 9%, Tenure = 20 years (240 months).
Affordable EMI = (1,00,000 x 50%) - 15,000 = Rs 35,000.
Using r = 0.0075 and n = 240, estimated eligible loan is approximately Rs 38.3 lakh.
Actual sanction may vary by credit score, employer profile, age, and property or collateral quality.
Things lenders also evaluate
- Credit score and repayment history
- Employment stability or business vintage
- Age and remaining earning years
- Collateral quality for secured products