Estimate your maximum borrowing capacity based on monthly income, existing EMIs, and FOIR.
Find out how much mortgage or personal loan a bank will lend you based on standard debt-to-income and FOIR guidelines.
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The Loan Eligibility Calculator estimates the maximum loan principal a borrower can qualify for based on monthly net income, existing recurring debts, proposed loan tenure, and lender interest rates. Financial institutions enforce strict risk ratios—primarily the Fixed Obligation to Income Ratio (FOIR) or Debt-to-Income (DTI) ratio—limiting total monthly debt obligations according to lender- and product-specific debt-to-income (DTI) or FOIR limits; there is no universal percentage.
Max EMI = (Net Monthly Income * FOIR%) - Existing EMIs
The permitted ratio varies by lender, country, loan type, and borrower profile; use the assumption that matches the lender or scenario being evaluated.
Principal = [Max EMI * ((1 + r)^n - 1)] / [r * (1 + r)^n]
Calculates the maximum borrowing amount that matches your available monthly EMI capacity.
Evaluate whether your monthly debt obligations exceed standard banking guidelines (typically 36% to 43% of gross income).
Example: Confirming that $1,800 in total monthly debt on a $6,000 gross salary represents an acceptable 30% DTI ratio.
Estimate the upper loan threshold a bank or mortgage broker is likely to approve based on current earnings and expenses.
Example: Calculating that a $90,000 annual household income qualifies for up to a $420,000 loan under standard 40% FOIR rules.
Identify how paying down an existing credit card or car loan will increase your borrowing power for a home purchase.
Example: Seeing that clearing a $400 car payment increases borrowing power by over $60,000 on a 30-year mortgage.
FOIR is a risk assessment metric used by banks to determine the percentage of a borrower's monthly income already committed to servicing existing debts. There is no universal FOIR cap. Lenders set their own limits based on factors such as country, loan type, income, existing obligations, and credit profile.
You can increase eligibility by: 1) Adding a working co-applicant; 2) Paying off smaller existing loans to lower your FOIR; 3) Opting for a longer loan tenure; or 4) Improving your credit score to secure a lower interest rate.
A high credit score (750+) does not automatically increase your borrowing limit, but it qualifies you for the lender's lowest interest rates and highest allowable FOIR tier, indirectly maximizing your loan size.
Lenders prefer stable, guaranteed base salary. Irregular annual bonuses, overtime pay, and sales commissions are often discounted or averaged over two years to protect against volatility.
No. This is an informational estimation based on standard banking guidelines. Final sanction depends on formal credit checks, employer verification, and property valuation.