Loan Eligibility Calculator
Find the maximum loan your income supports — work backwards from what you earn and already owe to the loan that fits, plus the levers that move it.
Your finances
₹40,000 of income can go to all EMIs. Most lenders allow 40–55%.
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₹38.90 L
on ₹80,000/mo at 9% over 20 years — 4.1× your yearly income
Manageable, but watch it — total emis would be 50% of your income. Around the typical lender ceiling. It's borrowable, but leaves less cushion for emergencies and lifestyle.
Assumes a 50% FOIR cap and a constant 9% reducing-balance rate. A planning estimate — lenders also weigh credit score, age, employment and policy, so the final sanction is not guaranteed.
From income to eligible loan
1 · Income × FOIR
₹40,000
total EMI allowance (50% of ₹80,000)
2 · Less existing EMIs
₹35,000
− ₹5,000 committed = new EMI room
3 · Eligible loan
₹38.90 L
principal that EMI buys at 9% · 20y
Affordability — EMI-to-income
Where your total EMIs (existing + new) sit against lender comfort zones.
FOIR you'd run at
50%
Most lenders cap FOIR around 40–55%. Below 40% leaves a healthy cash-flow cushion; above 50% squeezes your monthly budget.
Where your income goes
How your net income splits once the maximum EMI is in place.
After all EMIs, about ₹40,000/mo (50%) stays free for living costs, savings and emergencies.
How much you can borrow at different tenures
The same ₹35,000 EMI supports a bigger loan over a longer tenure — at your 9% rate.
A longer tenure raises eligibility but also the total interest — a bigger loan isn't automatically cheaper borrowing.
If you borrow the maximum
What maxing your eligibility actually costs over the full 20-year tenure.
Loan amount
₹38.90 L
what you borrow
Monthly EMI
₹35,000
44% of income
Total interest
₹45.10 L
over 20 years
Borrowing the full ₹38.90 L means a ₹35,000/mo EMI and a total repayment of ₹84.00 L — of which ₹45.10 Lis interest. Maxing out leaves little buffer; many planners suggest borrowing below the cap so a job change or rate rise doesn't strain your budget.
Eligible loan across rate & tenure
The same affordable EMI of ₹35,000 buys a different loan depending on the rate and tenure. Your current pick is highlighted.
| Tenure | 8% | 9% | 10% |
|---|---|---|---|
| 10 yrs | ₹28.85 L | ₹27.63 L | ₹26.48 L |
| 15 yrs | ₹36.62 L | ₹34.51 L | ₹32.57 L |
| 20 yrs | ₹41.84 L | ₹38.90 L | ₹36.27 L |
Change one thing, hold the rest fixed. Here's how each lever moves your eligible loan from ₹38.90 L.
Longer tenure +5 yrs
20 → 25 years → ₹41.71 L eligible
Higher income +20%
₹80,000 → ₹96,000/mo → ₹47.79 L eligible
Lower existing EMIs −50%
₹5,000 → ₹2,500/mo → ₹41.68 L eligible
Add a co-applicant
+₹40,000/mo income → ₹61.13 L eligible
Co-applicant income
Combined eligibility
₹61.13 L
Adding a co-applicant earning ₹40,000/mo lifts your combined income to ₹1.20 L/mo — raising eligibility by ₹22.23 L. Lenders count both incomes (and both credit profiles) on a joint application.
Want a specific loan? Flip the question
See the income a target loan needs — at your 9% rate over 20 years.
Net monthly income needed
₹99,973
A ₹50.00 L loan needs a ₹44,986 EMI; with your ₹5,000 existing EMIs and a 50% FOIR cap, that takes about ₹99,973/mo. That's ₹19,973/mo more than you earn now.
What property could this buy?
Your eligible loan plus a down payment from savings sets the price you can target.
Eligible loan
₹38.90 L
what you can borrow
+ Down payment
₹9.73 L
20% from savings
Target price
₹48.63 L
loan + down payment
With a 20% down payment of ₹9.73 L, your ₹38.90 L eligibility supports a property up to about ₹48.63 L. Stamp duty, registration and fees are extra and paid from savings too.
What this means
On ₹80,000 net income, a 50% FOIR cap allows up to ₹40,000 in total EMIs. After your ₹5,000 of existing obligations, ₹35,000 is free for a new EMI — enough to borrow about ₹38.90 L at 9% over 20 years. That puts your total EMIs at 50% of income — manageable, but watch it.
Key takeaways
- Eligible loan: ₹38.90 L
- Max affordable EMI: ₹35,000
- Total EMIs as % of income: 50%
- Interest on the max loan: ₹45.10 L
- Biggest booster: Add a co-applicant (+₹22.23 L)
Compare loan offers in minutes
Check your eligibility across lenders online — quick and paperless. Loan Hub, at no extra cost to you.
Your eligibility: ₹80,000/mo income at 9% over 20 years → about ₹38.90 L.
Continue planning the loan itself
Turn this eligibility into a plan — size the EMI, the home loan, or the monthly instalment that fits.
Eligible loan is the principal whose EMI equals your affordable instalment (income × FOIR − existing EMIs), found by reversing the standard reducing-balance EMI formula and priced with the same math as the /calculators/emi tool. FOIR norms here (40–55%) are approximate industry rules of thumb — each lender sets its own, and the actual sanction also depends on your credit score, employment, age, collateral and policy. Treat this as a planning estimate, not a guaranteed offer.
How loan eligibility is calculated
Loan = EMI × [ 1 − (1 + i)⁻ⁿ ] ÷ i
- Loan
- largest principal the instalment supports
- EMI
- affordable instalment = income × FOIR − existing EMIs
- i
- monthly rate = annual rate ÷ 12 ÷ 100
- n
- number of months = years × 12
Worked example
With your inputs — ₹80,000/month net income at a 50% FOIR cap: the total EMI allowance is ₹40,000, and after ₹5,000 of existing EMIs, ₹35,000 is free for a new instalment. At i = 0.750% a month and n = 20 × 12 = 240 months, that instalment supports a principal of about ₹38.90L — the same reducing-balance math as the EMI calculator, run in reverse.
Most asked eligibility questions
Eligibility is the largest loan a lender will likely approve based on your repayment capacity. The main driver is your FOIR — the share of net income that can go to total EMIs. This tool reverses the EMI formula to find the principal that fits the EMI left after your existing obligations.
FOIR (fixed-obligation-to-income ratio) is the percentage of your net income a lender allows to go to all EMIs combined. Most lenders sit around 40–55%, sometimes higher for high earners. A higher income, fewer existing EMIs, a lower rate or a longer tenure all raise the loan you can support.
No. Lenders also weigh your credit score, employment stability, age, the loan-to-value of any collateral, and their own internal policy. Two people with identical incomes can get different offers. Treat this as a planning estimate, not a sanctioned amount.
Pay down or close existing EMIs, add a co-applicant's income, choose a longer tenure (which lowers the EMI but raises total interest), or improve your credit profile so you qualify for a lower rate. Each lever moves the eligible amount in a predictable way — the 'what changes it' section above shows by how much.
Yes — for the same affordable EMI, a longer tenure spreads repayment over more months, so a larger principal fits the same instalment. The catch is total interest: a 30-year loan can sanction far more than a 15-year one, but you pay much more interest over its life. Bigger eligibility isn't always cheaper borrowing.
Lenders cap your total EMIs, not just the new one. Every rupee of existing EMI comes straight off your allowance before the new loan is sized, so a ₹10,000 existing EMI can cut your eligible amount by several lakhs. Closing small loans before you apply is one of the fastest ways to lift eligibility.
The complete guide to loan eligibility
What lenders are really asking
Eligibility answers one question: how much can you repay each month without overstretching? The standard yardstick is FOIR — the fixed-obligation-to-income ratio — the share of your net income that all EMIs combined are allowed to consume. Subtract your existing EMIs from that allowance and what's left is the instalment a new loan can carry; the principal behind it is your eligible amount. Income and existing debt set the EMI you can afford; the rate and tenure then decide how much loan that EMI buys.
How eligibility is calculated here
This calculator works backwards from your affordable EMI. It takes income × FOIR, subtracts your existing EMIs to get the new EMI you can support, then reverses the standard reducing-balance formula — loan = EMI × (1 − (1+i)⁻ⁿ) ÷ i, where i is the monthly rate and n the number of months — to find the largest principal that fits. A longer tenure or a lower rate lets the same instalment support a bigger loan.
The levers that move your eligibility
Four things change the number. A higher income or a higher FOIR cap raises your EMI allowance directly. Closing existing EMIs frees up allowance one-for-one — often the fastest win. A lower interest rate, a longer tenure, or a co-applicant's income lets the same or a larger allowance support more principal. The trade-off with tenure is total interest: a 30-year loan sanctions far more than a 15-year one but costs much more over its life, so a bigger eligible amount isn't automatically cheaper borrowing.
Why FOIR norms are only a guide
Most lenders cap FOIR somewhere between 40% and 55%, but the band shifts with income (higher earners are often allowed more), loan type and lender policy. FOIR is also just the start — your credit score, employment stability, age, the loan-to-value of any collateral, and the lender's appetite all feed into the final sanction. Two applicants with identical income can be offered very different amounts, so treat the figure here as a planning estimate rather than a promise.
How to borrow within comfort, not just within eligibility
Being eligible for a loan isn't the same as being able to afford it comfortably. Maxing the cap leaves little buffer for a job change, a rate rise on a floating loan, or an emergency. A common rule of thumb is to keep total EMIs well under half your net income and to leave room for savings and insurance. Use the affordability gauge above as a sanity check, and consider borrowing below your maximum so your monthly cash flow stays healthy.
Boosting your eligibility before you apply
If the eligible amount falls short of what you need, the fastest wins are usually closing or prepaying small existing loans and adding a co-applicant whose income (and clean credit history) is counted alongside yours. A longer tenure raises the number too, at the cost of more lifetime interest. Improving your credit score to qualify for a lower rate helps on both fronts — a bigger sanction and a cheaper loan.