Loan Eligibility Calculator
Estimate how much loan you can borrow (approx.) based on your monthly income, existing EMIs, desired tenure and interest rate. Use the optional maximum EMI percentage to model different lender rules.
Loan Eligibility Form
How eligibility is calculated
- Compute the maximum EMI allowed:
maxEMI = monthlyIncome × (percent / 100) - Find the EMI available for a new loan after existing obligations:
availableEMI = maxEMI − existingEMIs(if ≤ 0, eligibility is zero)
The available EMI is converted into an eligible loan amount using the standard amortization formula:
Loan = EMI × [ (1 − (1 + r)−n) / r ]
Where r is monthly rate (annual % / 12 / 100) and n is total months (years × 12).
Eligibility Snapshot
| Metric | What it Shows |
|---|---|
| Max EMI Allowed | Max EMI based on chosen percent of income |
| Available EMI | EMI left after paying existing obligations — usable for a new loan |
| Eligible Loan | Approx. loan principal you can borrow for given tenure & rate |
This tool provides an approximation of how lenders typically compute eligibility. Different banks and NBFCs use varying policies (different maximum EMI ratios, add-on factors for co-applicants, credit score checks). Use this calculator to get a realistic starting point and then check with your preferred lender for exact eligibility.
When to use this calculator
Use it when planning a new loan, comparing tenures or estimating whether your income supports the desired loan amount. It's helpful before approaching lenders so you have a sense of expected borrowing capacity.
How it works (plain explanation)
The calculator turns your income into a safe monthly EMI limit, removes existing commitments, and translates the remaining monthly capacity into a loan amount using standard amortization math. For a fixed available EMI, longer tenures translate into higher eligible principal (since EMI covers more months), but beware higher total interest.
Factors that affect eligibility
Major factors: monthly income, existing EMIs, chosen maximum EMI-to-income ratio, interest rate and tenure. Your credit score, employment stability, age and lender-specific policies also affect final approval.
Frequently asked questions
What percent should I choose for max EMI? Conservative lenders use 40–50% of net income; many allow up to 50–60% for salaried borrowers with good credit. Use 50% as a realistic default and adjust to model specific lenders.
Can co-applicants increase eligibility? Yes — combined income can increase max EMI and therefore eligible loan, subject to lender rules and combined obligations.
Is this guaranteed approval? No — this is an estimate. Lenders will verify documents, run credit checks and apply their own scoring and rules before approving.
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Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Actual loan eligibility is determined by the lender after due diligence.