Loan Approval Chances
High (85%)Tips to Increase Eligibility
- Clear existing loans to increase available EMI capacity
- Add co-applicant income for higher loan amount
- Opt for longer tenure to reduce EMI burden
About Loan Eligibility Calculator
A Loan Eligibility Calculator helps you determine the maximum loan amount you can borrow based on your income, existing EMIs, and other factors. Banks typically use FOIR (Fixed Obligation to Income Ratio) to assess your repayment capacity.
Formula Used
Max Loan = (Income × FOIR% - Existing EMI) × [(1+r)^n - 1] / [r × (1+r)^n]
Where FOIR is typically 40-50% for home loans, 35-40% for personal loans
Tips & Best Practices
- Maintain a credit score above 750 for better loan terms
- Clear existing loans to increase your eligibility
- Add a co-applicant to increase combined income
- Longer tenure increases eligibility but also total interest
- Keep your EMI to income ratio below 50%
Frequently Asked Questions
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that can go towards loan EMIs. Banks typically allow 40-50% for home loans and 35-40% for other loans.
How can I increase my loan eligibility?
You can increase eligibility by improving credit score, adding a co-applicant, clearing existing loans, choosing longer tenure, or showing additional income sources.
Does credit score affect loan eligibility?
Yes, a higher credit score (750+) not only increases your chances of approval but also helps you get better interest rates, effectively increasing your loan eligibility.
Can I get a loan with existing EMIs?
Yes, but your existing EMIs reduce your available income for new loan EMIs, thus reducing your maximum eligible loan amount.