Loan Eligibility Calculator — Maximum Loan You Qualify For

Banks don’t lend you the loan you want — they lend you the loan they think you can repay. The single number they use is FOIR — Fixed Obligation to Income Ratio: total monthly EMIs (existing + new) cannot exceed 40–60% of your net income. This calculator works backwards from your income to the maximum loan you’ll be approved for.

Loan Eligibility Calculator

Find out the maximum loan you qualify for based on income, existing obligations, and the bank’s FOIR rule.

$
$
FOIR50.00%
Rate8.00%
Years20

Maximum Loan You Qualify For

Eligible Loan Amount–
Available EMI Capacity–
FOIR Used–
Max EMI Allowed–

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How Banks Decide Your Loan Amount

Most banks cap total EMIs (across all loans) at 40–55% of net monthly income. Higher income earners can sometimes get up to 60–70%. The bank subtracts your existing loan EMIs first, then computes the remaining EMI capacity, then back-calculates how big a loan that EMI can service at the offered rate and tenure.

The Math

Max EMI = Income × FOIR
Available EMI = Max EMI − Existing EMIs
Eligible Loan = Available EMI × ((1+r)n−1) / (r × (1+r)n)

Worked Example

Example: Net income $5,000/month, existing EMIs $500/month, FOIR 50%, target rate 8%, 20-year tenure → max EMI = $2,500. Available EMI capacity = $2,000. Eligible loan ≈ $239,109. Want a bigger loan? Either pay off existing EMIs, increase income, or extend tenure.

How to Increase Your Eligibility

  • Add a co-applicant with separate income — typically doubles or triples eligibility.
  • Pay off existing loans — every $100/month in EMI reduction adds ~$11,000 to home loan eligibility.
  • Show variable income — bonuses, rentals, dividends — most banks count these at 40–60%.
  • Pick a longer tenure — 25 years vs 15 years can grow eligibility by ~30%, but at the cost of much more total interest.
  • Improve your credit score — banks may extend FOIR to 60% for prime credit borrowers.

Frequently Asked Questions

What FOIR do most banks use?▾
Indian PSU banks: 40–50%. Private banks: 50–55%. NBFCs: up to 60–65%. US/UK mortgage debt-to-income (DTI) is similar — typically 43% max.
Does this include credit-card minimum payments?▾
Most banks include 5% of credit-card outstanding as a ‘minimum EMI’ for FOIR calculations. Pay down cards before applying.
Why might my actual eligibility differ?▾
Banks also factor in age (you must finish the loan before retirement), employment type (salaried vs self-employed), and credit score. This calculator gives the income-based ceiling — actual sanctioned amount may be lower.
Should I borrow up to my eligibility?▾
Almost never. Just because you qualify for $500K doesn’t mean you should take it. A 50% FOIR on a 25-year loan leaves no room for emergencies, raises, or lifestyle upgrades. Aim for 30–35% FOIR for healthier financial life.

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