Loan Eligibility Calculator
Key takeaways
- The FOIR cap sets the EMI budget at ₹50,000.00 (50% of ₹1.00 L); existing EMIs use ₹10,000.00 of it, leaving ₹40,000.00.
- That ₹40,000.00 EMI services a ₹44.46 L loan at 9% over 20 years.
- Over 25 years instead of 20, the same EMI services ₹47.66 L — ₹3.21 L more, because each instalment then buys more principal.
FOIR usage — share of income already committed to EMIs
Adding the ₹40,000.00 affordable EMI takes usage exactly to the 50% cap.
About the Loan Eligibility Calculator
Lenders cap how much of a borrower's monthly income may go towards loan instalments altogether, using a FOIR — Fixed Obligation to Income Ratio. A 50% FOIR means at most half of monthly income can be committed to EMIs in total, including any already being paid.
This calculator applies that cap in two steps. First it works out the EMI room a new loan would have: income × FOIR, less the EMIs already running. Then it works out what loan amount that affordable EMI actually services at a given rate and tenure — the standard EMI formula run backwards, as the present value of an instalment stream.
The result describes one common lending rule applied to the figures entered. It is not an underwriting decision: a real approval also weighs credit score, employment stability, the lender's own policy and the specific product. If existing EMIs already use the whole FOIR budget, both figures show as "—", because there is no affordable-EMI number left to size a loan against.
Frequently asked questions
What is FOIR?
Fixed Obligation to Income Ratio — the share of monthly income a lender will let go to fixed obligations, chiefly loan EMIs. Lenders commonly apply somewhere in the 40–60% range and vary it by income band, credit profile and product. The exact figure applied to any one application comes from the lender, not from a public rule.
How is the eligible loan amount worked out from an EMI?
With the present value of an annuity: P = EMI × [(1 + i)ⁿ − 1] ÷ [i × (1 + i)ⁿ], where i is the monthly rate (annual ÷ 1200) and n the tenure in months. It is the mirror image of the EMI formula — that one goes principal to instalment, this one goes instalment to principal.
Why does a longer tenure raise the eligible amount?
Because the same instalment is spread over more months, so more of each one goes to principal over the life of the loan. The arithmetic runs both ways: the eligible amount rises, and so does the total interest paid on it — the EMI Calculator on this site shows that second figure for any amount and tenure.
Which income does a lender count?
Usually net monthly income from salary or verified business income, sometimes with a share of rental or other documented income added. Variable pay, bonuses and unverified income are often discounted or excluded. Enter the figure your lender would count, not gross CTC, if you want the estimate to track their arithmetic.
What counts as an existing EMI?
Every fixed monthly obligation the lender can see on your credit report — home, car, personal and education loan EMIs, and typically credit card minimum dues or converted card EMIs. Informal borrowings that never reach the credit bureau are not in their figure, though they are in your budget.
Is this the amount a bank will sanction?
No. It is what one common income rule allows for, computed from five numbers. Banks also apply loan-to-value limits on the asset, credit-score cut-offs, minimum income floors, age-at-maturity limits and their own internal policy, any of which can produce a smaller figure than this one.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation, and it is not a loan offer. The lender decides the actual interest rate, EMI, fees and eligibility, and whether insurance cover is required, and a floating rate can change during the loan. Charges you did not enter are not included. The lender’s decision rests on its own assessment and your credit history. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.