How the eligibility estimate works
Lenders check how much of your monthly income is already committed to EMIs. This is the fixed obligations to income ratio (FOIR). If a lender allows, say, 50% of your take-home income for all EMIs, and you already pay ₹5,000 a month, the rest of that 50% is the room for a new EMI.
The calculator then works out the loan amount that EMI can repay over your chosen tenure and interest rate:
where r is the monthly rate and n the number of months.
Example
Take-home income ₹60,000, existing EMIs ₹5,000, FOIR 50%: the room for a new EMI is ₹25,000. At an illustrative 14% for 48 months, that EMI can repay a loan of about ₹9.1 lakh.
What else decides your eligibility
The FOIR estimate is only the starting point. Lenders also look at your credit score, job or business stability, employer or business profile, banking history and their own policy. See the personal loan eligibility guide or business loan eligibility.
How to raise your eligibility
- Close or pay down small loans and card balances.
- Choose a longer tenure — it lowers the EMI, so the same income supports a bigger loan (at a higher total interest).
- Add a co-applicant with income, where the lender allows.
- Keep your credit score healthy.