EMI Eligibility Calculator
Check your maximum affordable EMI and the largest loan amount you can qualify for, based on your income and existing obligations.
How banks assess your loan eligibility
When you apply for a home loan, personal loan or car loan in India, lenders do not simply look at your salary. They calculate how much of your monthly income is already committed to debt, and how much room is left for a new EMI. The single most important metric in this assessment is FOIR.
What is FOIR?
FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your net monthly income that goes towards all your fixed debt obligations — existing EMIs, credit card minimum dues, and the proposed new EMI. Most Indian banks cap FOIR between 40% and 55%, with 50% being the common benchmark for salaried borrowers.
The logic is simple: a bank wants to ensure you retain enough income to cover living expenses after servicing all your debts. If your FOIR limit is 50% and your net income is ₹80,000, your total EMIs must not exceed ₹40,000. If you already pay ₹10,000 towards an existing loan, the maximum EMI you can take on for a new loan is ₹30,000.
How the maximum loan amount is calculated
This tool works in two steps. First, it finds your maximum affordable EMI:
Max EMI = (Net Income × FOIR%) − Existing EMIs
Then it applies the reverse EMI formula to convert that EMI into the largest loan principal you can support over your chosen tenure and interest rate:
P = EMI × ((1+r)n − 1) / (r × (1+r)n)
Here r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments (tenure in years × 12). A longer tenure or a lower interest rate increases the loan amount your EMI can support.
Tips to improve your eligibility
To qualify for a larger loan, you can: clear or reduce existing EMIs before applying, choose a longer tenure, add a co-applicant to combine incomes, or improve your credit score to secure a lower interest rate. Remember that this is an indicative figure — final approval also depends on your credit history, employment stability and the lender's internal policies.
Frequently asked questions
What is FOIR and why does it matter?
FOIR (Fixed Obligation to Income Ratio) is the share of your net monthly income committed to debt repayments. Banks use it to cap how much EMI you can afford. A lower FOIR means more headroom for a new loan; most lenders allow 40–55% of net income to go towards total EMIs.
How is the maximum loan amount calculated?
First the tool computes your maximum affordable EMI as (Net Income × FOIR%) − Existing EMIs. Then it applies the reverse EMI formula P = EMI × ((1+r)^n − 1) / (r × (1+r)^n), where r is the monthly interest rate and n is the number of months, to find the largest principal that EMI can service.
Does a longer tenure increase my eligibility?
Yes. For the same EMI, a longer tenure spreads repayment over more instalments, so the loan principal you can support is larger. The trade-off is that you pay more total interest over the life of the loan.
Why is my result lower than my salary suggests?
Eligibility depends on net (take-home) income after deductions, not gross salary, and is reduced further by any existing EMIs. Banks also apply the FOIR cap, so only a portion of your income is considered available for a new EMI.
Is this calculation final and guaranteed by banks?
No. This is an indicative estimate based on standard FOIR logic. Actual sanction depends on your credit score, employment type, age, property value (for home loans) and each lender’s specific policies. Treat it as a planning guide, not a loan offer.