Loan Eligibility Calculator
Calculate maximum loan borrowing capacity based on monthly salary and FOIR
Estimated borrowing capacity at 8.5% for 20 years
How Does It Work?
Determine your home loan and personal loan eligibility based on monthly take-home salary, existing obligations, interest rate, and standard bank FOIR debt limits.
Banks typically permit 50% to 60% FOIR (Fixed Obligation to Income Ratio) for repayment.
Real-World Worked Example
An applicant earns ₹1,00,000 net monthly take-home salary and has an existing ₹10,000 car EMI. Bank applies 50% FOIR at 8.5% interest over 20 years.
- •Total Permissible EMI (50% FOIR): ₹50,000
- •Available Monthly EMI: ₹50,000 - ₹10,000 = ₹40,000
- •Maximum Home Loan Eligibility: Approx ₹46,09,000
Takeaway: Closing the ₹10,000 car EMI frees up that room in the FOIR formula, boosting home loan eligibility by over ₹11.5 Lakhs.
Related Guides & Calculation Deep Dives
All guidesShould You Prepay Your Home Loan? A Worked Example
Making early principal prepayments on a long-term home loan dramatically cuts compound interest. On a ₹40,00,000 loan at 8.75% for 20 years, a single lump-sum prepayment of ₹3,00,000 at the end of Year 3 saves ₹7,46,218 in interest and closes your mortgage 31 months early.
How EMI Is Calculated: Formula and Worked Example
An Equated Monthly Installment (EMI) is calculated using a reducing-balance formula: EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]. On a ₹10,00,000 loan at 9% for 5 years, your monthly EMI is exactly ₹20,758, with early payments heavily weighted toward interest charges.
Old vs New Tax Regime: How to Choose
Under current rules (FY 2024-25 / FY 2025-26), the New Tax Regime is the default choice with lower slab rates and a ₹75,000 standard deduction, while the Old Regime requires extensive deductions (Section 80C, 80D, HRA, home loan interest) exceeding ₹3.75 Lakhs to beat it.
Loan Eligibility FAQs
Common questions, calculation formulas, and usage rules.
FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your monthly salary that can be committed to EMI payments.