Loan Eligibility Calculator
Find out how much loan you can afford based on your income and current EMIs.
Eligibility Parameters
₹1,50,000
₹20k₹10L
₹25,000
₹0₹5L
8.5%
20 Years
Eligibility Assessment
Max Affordable Monthly EMI
₹50,000
*Assumes 50% max debt-to-income ratio
Max Eligible Loan Amount
₹57,61,542
Burden Breakdown
Ratio of the principal loan received versus the interest you will pay to the bank.
Eligibility by Tenure
See how increasing your loan tenure dramatically increases your eligible loan amount (but also your interest).
How do banks calculate Loan Eligibility?
Before approving a loan, banks need to ensure that you have enough disposable income to comfortably pay the EMIs without defaulting. To do this, they look at your Net Monthly Income and apply a debt-to-income threshold.
The 50% Thumb Rule
- Debt-to-Income Ratio: Most banks assume that 50% of your net income is needed for living expenses (food, rent, utilities). Therefore, all your loan EMIs combined should not exceed the remaining 50%.
- Existing Obligations: If you already have existing loans (like a car loan), the bank subtracts that EMI from your 50% limit. The balance is your "Affordable EMI" for the new loan.
- Reverse Calculation: Once the bank knows your Affordable EMI, they use a reverse-EMI mathematical formula incorporating your desired interest rate and tenure to calculate the maximum principal amount they can securely lend you.