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Loan Eligibility Calculator

Calculators · Added 14 August 2026

Lenders cap total EMIs at a share of your income. This calculator works backwards from that: it takes the share the lender will commit, subtracts what your existing obligations already consume, and shows the largest loan the remaining EMI could service. It is arithmetic on a lender's rule of thumb, not a decision from a bank.

Take-home pay, not CTC.

All current EMIs and card minimums.

%
yrs
%

Lenders typically use 40–55%.

How to use the loan eligibility calculator

  1. 1Enter your net monthly income — take-home pay, not CTC.
  2. 2Enter all existing monthly obligations: current EMIs, card minimums, anything committed.
  3. 3Enter the interest rate and tenure you expect on the new loan.
  4. 4Set the obligation-to-income ratio. Lenders typically use 40–55%, varying by lender, income band and product.
  5. 5Press Check. The result shows the EMI available and the loan amount it supports, plus a table of how the tenure changes both.

Examples

A clean borrower

Input
₹1,00,000 income, no existing EMIs, 50% ratio, 9% for 20 years
Result
EMI available ₹50,000 · eligible amount about ₹55,57,248

The whole of the committed share is available because nothing is already committed.

The cost of an existing loan

Input
The same figures with a ₹15,000 existing EMI
Result
EMI available ₹35,000 · eligible amount about ₹38,90,073

A ₹15,000 obligation reduces eligibility by more than ₹16 lakh. Clearing a small loan before applying often raises the limit by more than the loan was worth.

Stretching the tenure

Input
The clean borrower at 30 years instead of 20
Result
A higher eligible amount, and a considerably higher total interest bill

The table under the result shows both figures together, because only one of them tends to get mentioned.

About the loan eligibility calculator

What a lender is actually testing

The fixed-obligation-to-income ratio is a solvency test dressed as a percentage. The lender is asking whether, after every committed payment, enough income remains for you to live on — and therefore to keep paying. It caps total obligations rather than the new loan alone, which is why an existing EMI reduces your eligibility rupee for rupee of committed income, not of outstanding balance.

That distinction has a practical edge. A small personal loan with two years left and a high EMI can cost you more eligibility than a large home loan with a low one, because the test looks at the monthly commitment rather than the debt. Clearing the high-EMI obligation before applying frequently raises the eligible amount by several times the balance you cleared.

The ratio itself is not fixed by regulation but by policy, and it varies with income. Lenders generally allow a higher share for higher earners on the reasonable grounds that a person earning several lakh a month can commit 60% and still have a great deal left, while someone earning ₹30,000 cannot. This is why quoting a single national figure for eligibility is meaningless.

The gap between eligible and sensible

The number this calculator produces is a ceiling, and ceilings make poor targets. A lender's ratio is designed to protect the lender's book across a large portfolio, not to leave a particular household comfortable. It knows nothing about your school fees, your dependants, your job security or your appetite for risk.

The specific danger is the tenure lever. Stretching from twenty years to thirty raises the eligible amount noticeably, which feels like unlocking a better property, and simultaneously raises the total interest by a very large margin while committing you a decade longer. The eligible figure moves in the direction that feels like progress; the cost moves in the direction nobody mentions in the branch.

A more defensible approach is to decide what EMI you are comfortable with independently — by looking at what you currently save each month, not at what a formula permits — and then use the calculator in reverse to see what that supports. The answer is usually below the ceiling, and the gap is your margin for a job change, a rate rise, or a year that does not go to plan.

Frequently asked questions

Is this an approval?
No, and it cannot be. It applies one rule that lenders use — the cap on total EMIs as a share of income — and ignores everything else they assess: your credit score and repayment history, how long you have been employed and in what kind of role, your age relative to the tenure, the property in a secured loan, and internal policies that differ between lenders and change over time. Treat the output as a planning figure.
What ratio should I use?
40–55% covers most lenders, and the figure is usually higher for higher incomes — someone earning a great deal can commit a larger share and still live comfortably, and lenders reflect that. If you know your lender's number, use it. If not, run 40% and 55% to see the range you are working within.
Should I enter gross or net income?
Net — what actually reaches your account. Lenders assess affordability against take-home pay, because that is what an EMI is paid from. Entering CTC will overstate the result substantially, since CTC includes employer contributions you never see.
Why does a longer tenure raise the eligible amount?
Because the same EMI services more principal when spread over more months. The catch is the total interest, which rises steeply — the table under the result shows both so the trade-off is visible. Borrowing the maximum a thirty-year tenure permits is rarely the same thing as borrowing wisely.
Does the down payment factor in?
Not here. This calculates what your income supports; secured lending is also capped by the value of the asset — a lender will typically fund a percentage of a property's value, requiring you to cover the rest. Your actual limit is the lower of the two, so check both.

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