ganak.appPersonal Loan Eligibility Calculator
Check your personal loan eligibility based on monthly income and existing EMI obligations. Calculate maximum loan amount you can get from banks and NBFCs in India. Uses FOIR-based methodology for accurate results for both salaried and self-employed applicants.
Cost Breakdown
Principal you borrow vs interest you pay over the loan tenure
Total Cost
Complete cost breakdown of your personal loan
Affordability Check
How this loan fits your monthly budget
Max 45% of ₹50,000 income allowed for EMIs
Moderate — near the upper limit, plan a buffer
55% of income remains after all EMIs
Smart Insights
Ways to optimize your loan eligibility — rate sensitivity, co-applicant impact, and tax benefits
What is Loan Eligibility?
Understanding how banks determine your borrowing capacity
Loan eligibility is the maximum loan amount a bank or NBFC is willing to lend you based on your income, existing financial obligations, age, and the loan's interest rate and tenure. It reflects your repayment capacity — how much EMI you can comfortably afford every month.
Banks use the FOIR (Fixed Obligation to Income Ratio) method to assess this. FOIR determines what percentage of your gross monthly income can go towards EMI payments, typically ranging from 40% to 60% depending on your income level and employment type.
How is Loan Eligibility Calculated?
The FOIR-based formula used by Indian banks
Step 1: Calculate Maximum EMI Capacity
Max EMI = (Total Income × FOIR%) - Existing EMIsStep 2: Calculate EMI per Lakh
EMI per Lakh = [1,00,000 × R × (1+R)^N] / [(1+R)^N - 1]where R = monthly rate, N = tenure in months
Step 3: Calculate Eligible Loan Amount
Eligible Loan = (Max EMI / EMI per Lakh) × 1,00,000Example:
Monthly income: ₹50,000 | FOIR: 55% | No existing EMIs
Max EMI: ₹27,500
Rate: 8.5% p.a. | Tenure: 20 years | EMI per Lakh: ₹868
Eligible Loan: ₹31.7 Lakh
FOIR by Income Slab
How much of your income can go towards EMIs
| Monthly Income | Salaried FOIR | Self-Employed FOIR |
|---|---|---|
| Below ₹50,000 | 50% | 45% |
| ₹50,000 – ₹1,00,000 | 55% | 50% |
| Above ₹1,00,000 | 60% | 55% |
FOIR values are indicative and vary by bank, loan type, and credit profile. Higher income typically allows a higher FOIR since basic living expenses form a smaller proportion.
How to Increase Your Loan Eligibility
Proven strategies to maximize your borrowing capacity
Add a Co-Applicant
Adding a spouse or earning family member as co-applicant combines incomes, directly increasing the eligible loan amount. This is the most effective strategy.
Close Existing Loans
Pay off credit card dues, personal loans, or car loans. Every ₹5,000 reduction in existing EMIs can increase eligibility by ₹5-6 Lakh for a home loan.
Choose a Longer Tenure
A longer tenure reduces EMI per lakh, which increases the loan amount for the same monthly payment capacity. But total interest paid will be higher.
Improve Your Credit Score
A CIBIL score above 750 qualifies you for better interest rates, which in turn increases your eligible loan amount for the same EMI.
Declare All Income Sources
Include rental income, freelancing income, bonuses, and other regular income sources to increase your declared income for eligibility.
Common Mistakes to Avoid
Pitfalls that reduce your loan eligibility
Maxing Out Credit Cards
High credit utilization (above 30%) reduces your credit score and counts as an existing obligation, reducing eligibility.
Applying to Multiple Lenders
Each loan application triggers a hard inquiry on your credit report. Multiple inquiries in a short period lower your score.
Not Checking CIBIL Before Applying
Check your credit report for errors before applying. Incorrect outstanding balances or wrongly reported defaults can tank your eligibility.
Loan Types Compared
Interest rates, tenure, and eligibility factors across loan types
| Loan Type | Rate Range | Max Tenure | Tax Benefit |
|---|---|---|---|
| Home Loan | 8.25% – 10% | 30 years | 80C + 24(b) |
| Personal Loan | 10% – 24% | 5 years | None |
| Car Loan | 8% – 12% | 7 years | None |
| Education Loan | 8% – 14% | 15 years | 80E |
| Loan Against Property | 8.5% – 12% | 15 years | If for business |
Frequently Asked Questions
Common questions about loan eligibility calculation in India