What is Loan Eligibility?

Loan eligibility is the maximum amount a bank is willing to lend you, based on your income, existing obligations, credit score, age, and other factors. Banks typically allow EMIs up to 50% of your monthly income.

Key Factors That Determine Eligibility

• Monthly Income: Higher income = higher eligibility
• Existing EMIs: Other loans reduce eligibility
• Credit Score: 750+ gives best terms
• Age: Younger borrowers get longer tenures
• Employment Type: Salaried usually get better rates
• Property Value: Banks fund up to 80-90% of property value

How Eligibility is Calculated

Banks use FOIR (Fixed Obligation to Income Ratio):

1. Maximum EMI allowed = 50% of monthly income
2. Subtract existing EMIs from this
3. Remaining amount is available for new EMI
4. Calculate loan amount from this EMI, tenure, and rate

Example Calculation

Income: ₹50,000/month, Existing EMI: ₹0, Rate: 8.5%, Tenure: 20 years:

• Max EMI = 50% × 50,000 = ₹25,000
• Eligible loan ≈ ₹29,00,000

How to Increase Eligibility

• Add a co-applicant (spouse, parent) with income
• Close existing loans before applying
• Improve credit score to 750+
• Opt for longer tenure (reduces EMI, increases eligibility)
• Declare all sources of income (rental, freelance, etc.)

Why Use Our Loan Eligibility Calculator?

Know your loan eligibility before approaching banks. Plan your property budget realistically.