💰 Personal Finance & Loans
Loan Eligibility Calculator
Estimate how much loan principal may be eligible from income and obligations.
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Estimate how much loan principal may be eligible from income and obligations. This dedicated page is built for fast, clean calculations and search visibility.
Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.
How to use this calculator
- Open the loan eligibility calculator page.
- Enter the required values in the form fields.
- Click Calculate to see the result and breakdown.
- Use the related links to explore similar tools.
Results are estimates. For lending, taxes, trading, nutrition, or medical decisions, verify with a qualified professional.
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How banks calculate your loan eligibility
Indian banks primarily use two metrics. FOIR (Fixed Obligations to Income Ratio): the percentage of gross monthly income going toward all existing EMIs plus the proposed new EMI. Most banks cap this at 40–50%. If your gross income is ₹1 lakh and you have no existing EMIs, your maximum EMI is ₹40,000–₹50,000.
CIBIL Score: required above 750 (ideally 800+) for best loan offers. Below 700, most banks decline or significantly increase the interest rate.
Income considered for eligibility
- Salaried: Net take-home or gross salary, reflected in salary slips and Form 16.
- Self-employed: Average net profit from ITR for last 2–3 years. Business vintage of minimum 3 years typically required.
- Rental income: 70–80% of gross rental income may be considered.
- Co-applicant income: Spouse or parent income can be clubbed to increase eligibility.
To increase the loan amount you qualify for: clear existing short-term high-EMI debts before applying, add a co-applicant with income, maintain CIBIL above 750, and avoid multiple loan enquiries in the 3 months before applying (each hard inquiry reduces score by 5–15 points).
Frequently asked questions
How do banks verify income for loan eligibility?â–¼
For salaried applicants: last 3–6 months salary slips, last 2 years Form 16, 6–12 months bank statements showing salary credits. For self-employed: last 2–3 years ITR with CA audit (if applicable), GST returns, 12 months business current account statements. Banks may also call employers for employment verification.
Can I get a loan if I have had loan defaults in the past?â–¼
It becomes very difficult. Defaults stay on your CIBIL report for 7 years. Most banks decline applications with a history of default or settlement. NBFCs are more flexible but charge higher rates. Gold loans and secured loans are available despite poor credit history. The strongest strategy is to rebuild credit over 2–3 years with timely repayment of any existing credit.
Does the type of employment affect loan eligibility?â–¼
Yes significantly. Government employees get the best terms. MNC/large private company employees are next. Smaller company employees may face scrutiny of employer financial health. Self-employed and business owners face the most documentation requirements. Contract employees and those on probation (less than 6 months in current job) often face restrictions.
How does the loan tenure affect my eligibility?â–¼
Longer tenure reduces the EMI for the same loan amount, which can bring you within the FOIR limit and increase your eligible loan amount. Extending from 15 to 20 years on a ₹50 lakh loan at 8.5% reduces EMI from ₹49,189 to ₹43,391. However, longer tenure means substantially more total interest paid. Use tenure extension as a last resort for eligibility, not as a default choice.