Loan Eligibility Calculator

What is FOIR?

FOIR (Fixed Obligation to Income Ratio) is the maximum share of your monthly income that lenders allow to go towards EMIs (existing loans + the new loan). For example, at 50% FOIR and ₹1 lakh income, your total EMIs cannot exceed ₹50,000. If you already pay ₹15,000 in EMIs, the max new EMI is ₹35,000. From that, we can work out the max loan amount at a given rate and tenure.

Lenders use FOIR to ensure you have enough income left for living expenses after paying all EMIs. FOIR limits vary by product and lender (e.g. 40–50% for personal loans, up to 60% or more for home loans in some cases). Income may be considered gross or net depending on the product. This calculator gives you an approximate max loan based on your income, existing EMIs, and the FOIR and rate/tenure you enter. Actual eligibility is set by the bank or NBFC and may also depend on credit score, age, and employment.

How is Max Loan Amount Calculated?

First we get max EMI = (Monthly income × FOIR / 100) − Existing EMIs (capped at 0). Then we use the inverse of the EMI formula to find the principal that would yield that EMI at your assumed rate and tenure: P = EMI × ((1+r)^n − 1) / (r × (1+r)^n). The result is your approximate max loan amount.

Example: ₹1 Lakh Income, ₹15K Existing EMI, 50% FOIR, 9% for 20 Years

At 50% FOIR, your max total EMI is ₹50,000 (50% of ₹1 lakh). You already pay ₹15,000 in existing EMIs, so your max new EMI is ₹50,000 − ₹15,000 = ₹35,000. At 9% p.a. for 20 years, an EMI of ₹35,000 corresponds to an approximate max loan of ₹38 lakh. So you could typically borrow up to around that amount for a home loan at those terms, subject to the lender’s actual eligibility rules. Use the calculator above with your income, existing EMIs, FOIR, rate, and tenure to get your estimate.

Benefits of Using This Calculator

A loan eligibility calculator gives you a ballpark of how much you can borrow based on your income and existing EMIs, so you can narrow your search to affordable loan amounts and avoid over-applying. It shows the max EMI you can add and the approximate max loan at a given rate and tenure.

Use it before visiting banks or checking offers online to set realistic expectations. You can try different FOIR values (e.g. 50% vs 60%) or tenures to see how they change the max loan. Actual eligibility depends on the lender and your credit profile; use this as an indicative guide only.

How to Use This Calculator

Enter your monthly income (gross or net, as your lender considers), your existing EMI obligations (all current loans), and the FOIR percentage (e.g. 50% or 60%—use what your lender typically applies). Then enter the interest rate and tenure you are considering for the new loan. The calculator shows your max new EMI and the approximate max loan amount.

Actual eligibility depends on the lender and your credit profile, age, employment, and other factors. Use this as an indicative guide to set expectations and to see how much you can afford before you apply. If your lender uses a different FOIR or income definition, adjust the inputs accordingly.

FAQs: Loan Eligibility