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Borrowing CapacityVerified: 2024-10-01

Loan Eligibility Calculator

Determine your maximum borrowing power, allowable debt obligations, and monthly repayment limits based on your take-home salary and standard bank FOIR ratios.

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Adjust Parameters

₹1 Lakh
₹
₹15,000₹50,00,000

Monthly credited in-hand salary after PF, TDS, and deductions.

₹10 Thousand
₹
₹0₹20,00,000

Total existing monthly installment obligations.

%
6%18%

Current benchmark lending rate for the loan type.

Years
1 Y30 Y

Longer tenure increases loan eligibility but increases total interest.

50% of Salary
35% (Conservative)50% (Standard Indian Bank Norm)65% (High Income Slabs)
Maximum Eligible Loan
₹46,09,234

Based on 50% FOIR & 20 Years (240 Months) term

Max New Monthly EMI
₹40,000

After ₹10,000 existing EMIs

Total Allowable Debt EMI
₹50,000

50% of ₹1,00,000

Total Repayment (P + I)
₹96,00,000

Includes ₹49,90,766 interest

Breakdown

Total: ₹96,00,000
Breakdown data table
CategoryAmountPercentage
Eligible Loan Principal₹46,09,23448.0%
Total Interest Outlay₹49,90,76652.0%

Borrowing Power Across Loan Tenures

Maximum loan amount at 8.5%% for available EMI capacity of ₹40,000/month

TenureEligible Loan AmountMonthly InstallmentTotal Interest PayableTotal Repayment
5 Years₹19,49,647₹40,000₹4,50,353₹24,00,000
10 Years₹32,26,179₹40,000₹15,73,821₹48,00,000
15 Years₹40,61,988₹40,000₹31,38,012₹72,00,000
20 Years₹46,09,234₹40,000₹49,90,766₹96,00,000
25 Years₹49,67,543₹40,000₹70,32,457₹1,20,00,000
30 Years₹52,02,146₹40,000₹91,97,854₹1,44,00,000
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How Loan Eligibility (FOIR Method) is Calculated

Transparent mathematical formulas and assumptions used across our financial engines.

Mathematical Formula
Available EMI = Net Monthly Salary * FOIR% - Existing EMIs

Variables & Legend

Loan Amount (PV)
Present value of maximum monthly EMI discounted at loan interest rate
FOIR
Fixed Obligation to Income Ratio (typically 40% to 55% across Indian banks)
Existing EMIs
Current active loan installments that reduce your borrowing buffer

Conventions & Assumptions

  • Indian banks (SBI, HDFC, ICICI, etc.) limit total monthly debt repayment obligations to between 40% and 55% of take-home income.
  • Higher salary brackets (e.g. above ₹1.5 Lakh/month) often qualify for higher FOIR allowances (up to 60% or 65%).
  • Co-applying with a working spouse or adding documented co-borrower income substantially increases your eligible loan sanction.
  • Maintaining a high CIBIL score (750+) ensures you qualify for the lowest benchmark interest rates, which directly raises borrowing power.

Frequently Asked Questions

FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your net monthly income that banks allow you to allocate towards total loan EMIs. Most Indian banks cap FOIR at 40% to 55% to ensure you have enough remaining income for living expenses.

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