Loan Eligibility Calculator
Check your loan borrowing limit. Input your monthly salary, existing debt payouts, expected interest rates, and tenure to check your maximum credit allowance.
Parameters
Borrowing Potential
This calculator determines the results based on the following standard financial formula for Loan Eligibility Capacity:
Variables Glossary
- Eligible_EMI
- Maximum monthly EMI bank allows you to pay (Income × FOIR - Existing EMIs)
- FOIR
- Fixed Obligation to Income Ratio (standard 50% threshold limit)
- Eligible_Loan
- Maximum loan amount you can qualify to borrow
- r
- Monthly rate of interest (annual rate / 12 / 100)
- n
- Tenure in months (years × 12)
Finds the present value of the allowed monthly EMI (Income * FOIR - Existing EMIs) compounded monthly over the tenure.
What is FOIR in loan eligibility?
FOIR stands for Fixed Obligation to Income Ratio. It is a metric used by banks to determine a borrower's loan eligibility. Usually, banks expect that your total monthly debt payments (existing EMIs + new EMI) should not exceed 50% of your net monthly income.
How can I increase my loan eligibility?
You can increase your loan eligibility by: (1) paying off existing short-term loans, (2) adding a co-applicant (e.g. spouse) to pool incomes, (3) declaring structured secondary income sources, or (4) choosing a longer repayment tenure to lower the EMI.