How to Check Your Loan Eligibility Online?
Whether you are planning to buy your first home or a new car, knowing your Loan Eligibility is the first step. Banks and financial institutions in India use specific ratios to determine how much they can lend you. Our Loan Eligibility Calculator India simplifies this complex process into a few easy steps.
Understanding Fixed Obligation to Income Ratio (FOIR)
One of the most critical factors banks check is your FOIR. Most Indian banks allow a maximum of 50% to 60% of your net monthly income to be used for total EMIs (including the new loan and any existing ones). If your FOIR exceeds this limit, your loan application might get rejected.
Factors Affecting Your Loan Eligibility
- Net Monthly Income: A higher income directly increases your borrowing capacity.
- Credit Score (CIBIL): A healthy credit score (750+) can help you get larger loans at lower interest rates.
- Existing Liabilities: Other active loans or credit card dues reduce your eligible loan amount.
- Age & Tenure: Longer tenures reduce the monthly EMI, thereby increasing the total loan amount you can qualify for.
Step-by-Step Guide to Using the Calculator
- Income: Use the slider to select your monthly take-home salary.
- Existing EMI: Input any current EMIs you are paying (Car loan, Personal loan, etc.).
- Rate & Tenure: Adjust the expected interest rate and the number of years you want the loan for.
- Instant Result: View your maximum eligible loan amount and EMI capacity in real-time.
Loan Eligibility FAQs
You can increase eligibility by adding a co-applicant (spouse/parents), closing existing small
loans, declaring additional income sources, or choosing a longer tenure.
While it varies by bank, most lenders require a minimum net monthly income of ₹15,000 to ₹25,000 for
home loan eligibility in urban cities.
Not directly, but high utilization of that limit or delayed payments will lower your credit score,
which negatively impacts eligibility.