How much can you borrow?

Calculate your maximum loan eligibility instantly based on your income and current financial obligations.

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Include car loans, personal loans, or credit card bills.

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Years

Understanding Your Loan Eligibility

Before applying for a home loan, personal loan, or car loan, knowing your maximum borrowing capacity is crucial. Loan eligibility is not just about your gross salary; it is a calculation used by banks to determine risk. This calculator mimics the algorithms used by major financial institutions to give you a realistic estimate of the loan amount you can secure today.

The Logic: What is FOIR?

Banks use a metric called Fixed Obligation to Income Ratio (FOIR).

Ideally, banks believe that 50% of your income is required for living expenses (rent, food, utilities). The remaining 50% is your "Net Available Monthly Surplus," which can be used to pay EMIs.

Formula:
Eligibility = [(Net Income × 50%) - Existing EMIs]

Example Calculation

  • Monthly Income: $5,000
  • 50% Cap (Bank Rule): $2,500
  • Less: Car Loan EMI: -$500
  • Available for New Loan: $2,000 / month

4 Key Factors Affecting Your Limit

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Credit Score

A score above 750 (CIBIL/FICO) often unlocks higher loan amounts and lower interest rates.

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Age & Tenure

Younger applicants can opt for longer tenures (up to 30 years), which reduces EMI and increases eligibility.

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Nature of Employment

Salaried individuals working in MNCs often get higher limits compared to self-employed individuals in volatile sectors.

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Existing Debts

Every active credit card EMI or personal loan reduces your FOIR, lowering your new loan limit.

How can you increase your eligibility?

If the calculator shows a lower amount than you need, try these proven strategies:

  • Add a Co-applicant: Adding an earning spouse or parent combines your incomes, often doubling your eligibility.
  • Close Short-term Debts: Pay off small personal loans or credit card dues. Even a $200 EMI reduction can increase loan eligibility by $20,000+.
  • Opt for a Longer Tenure: Increasing tenure from 20 to 25 years lowers the EMI, allowing you to borrow a larger principal amount.

Frequently Asked Questions

Does a higher salary guarantee a higher loan?
Not necessarily. Even with a high salary, if your existing debts (credit cards, car loans) consume more than 50% of your income, your new loan eligibility will be low.
What is the maximum loan tenure I can get?
For home loans, tenures can go up to 30 years. For personal loans, it is usually capped at 5 to 7 years. Your age at the time of maturity must typically be less than 65-70 years.
Does this calculator work for Self-Employed users?
Yes, but instead of "Gross Monthly Income," self-employed individuals should enter their "Gross Monthly Profit" or taxable income as per their ITR (Income Tax Returns).