Find out how much loan you may be eligible for. Enter your monthly income, your existing EMIs, the interest rate and the loan period to see the maximum loan amount — only an estimate, not a bank approval.
1. Enter your monthly income. 2. Enter your existing monthly EMIs (0 if you have none). 3. Enter the interest rate and loan period, then click Check Loan Eligibility.
Before you apply for a home loan or a personal loan, it helps to know how much a bank may lend you. A loan eligibility calculator gives you that answer in seconds. Enter your monthly income, the EMIs you already pay, the interest rate and the loan period, and this free calculator estimates the maximum loan amount you may be eligible for. It is only an estimate, not a bank approval, but it stops you from applying for a loan far above your limit and getting rejected.
Banks decide loan eligibility mainly by your income and your existing debts. Most banks follow a simple rule: your total EMIs, including the new loan, should not be more than 40 to 50 percent of your monthly income. This calculator uses the 50 percent rule. It first works out how much EMI you can still afford, then works backwards through the EMI formula to find the loan amount that gives that EMI. Banks also look at your credit score, your job, your age and your savings, so the final offer can be lower than this estimate.
Suppose your monthly income is 100,000 and you already pay 10,000 per month in EMIs. Fifty percent of your income is 50,000, so after your existing 10,000 EMI, you can afford a new EMI of 40,000. At an interest rate of 10 percent per year over 20 years (240 months), this loan eligibility calculator gives a maximum loan of about 4,144,985. If you had no existing EMIs, the same income and rate would allow a new EMI of 50,000 and a loan of about 5,181,000. The existing EMI of 10,000 therefore costs you more than 1,000,000 of loan eligibility.
The calculation has two steps. First, find the maximum new EMI: maximum new EMI = (monthly income times 50 percent) minus existing EMIs. Second, reverse the EMI formula to find the loan amount: loan amount = EMI times ((1 + r)^n - 1) divided by (r times (1 + r)^n), where r is the monthly interest rate (yearly rate divided by 12 and by 100) and n is the number of months. A lower interest rate or a longer loan period increases the eligible loan, because the same EMI can repay a bigger loan.
Clear small loans first. Paying off a small loan or credit card frees up EMI space and can raise your eligible loan by a large amount. Do not borrow the maximum. Just because a bank offers the maximum does not mean you should take it; leave room for emergencies. Check your credit score. A good credit score can get you a lower interest rate, which raises your eligible loan. Add a co-applicant. Adding a working spouse as a co-applicant adds their income and raises eligibility. Try a longer tenure in the calculator. A longer period raises the eligible amount, but remember you will pay much more total interest.
Suppose your monthly income is 60,000 and you have no existing EMIs. Fifty percent of your income is 30,000, so you can afford a new EMI of 30,000. At an interest rate of 9 percent per year over 15 years (180 months), this loan eligibility calculator gives a maximum loan of about 2,958,000. If you take a loan of only 2,000,000 instead, your EMI would be about 20,000, leaving you 10,000 of spare EMI space every month. Borrowing less than the maximum is usually the smarter choice, because it leaves room for emergencies.
Forgetting credit card EMIs. Credit card instalments count as EMIs too, and banks will find them, so include them honestly. Using gross income when the bank uses net income. Check which income the bank counts, because the result changes. Ignoring your credit score. A low credit score can reduce your eligible loan or raise your interest rate, even if your income is high. Applying for many loans at once. Every application is recorded, and too many in a short time can lower your credit score. Trusting the estimate as an approval. The calculator gives an estimate; the bank's decision also depends on your documents, job stability and credit history.
Pro Tip: Before you apply, check your credit report for mistakes and pay off small debts. A clean report can get you a lower rate and a bigger loan.
Note: This is an estimate based on the 50 percent EMI rule only. It is not a loan approval, and banks may offer more or less than this amount.
What is loan eligibility? Loan eligibility is the maximum loan amount a bank is likely to offer you. It depends on your income, existing EMIs, credit score, age and job history.
Is this calculator's result a loan approval? No. It is only an estimate based on the 50 percent EMI rule. The bank makes the final decision after checking your credit score, documents and other details.
Why do banks use the 50 percent rule? Banks want to be sure you can still pay for food, rent, bills and emergencies after paying your EMIs. Keeping total EMIs under half your income leaves room for daily life.
How can I increase my loan eligibility? Pay off existing loans, improve your credit score, add a co-applicant with income, choose a longer tenure, or apply for a lower interest rate.
Does my age affect loan eligibility? Yes. Younger applicants can usually get longer tenures, which raises the eligible amount. Banks also want the loan to finish before your retirement age.
What documents do banks ask for after eligibility? Usually salary slips or bank statements, tax returns, identity proof, address proof, and details of existing loans. Self-employed applicants may need extra business documents.
What is a credit score and why does it matter? A credit score is a number that shows how reliably you have repaid loans in the past. A high score means banks trust you more, so you can get a bigger loan at a lower rate.
Can self-employed people get a loan? Yes, but banks usually ask for extra documents, such as tax returns and bank statements for the last two or three years, to check your income.