Loan Eligibility Calculator

Lenders in India often start with a fixed-obligation-to-income ratio: existing EMIs plus the new EMI should not swallow more than about half of monthly income, though each bank writes its own policy. This page takes income, current EMIs, a rate and a tenure, assumes a 50% FOIR, and back-solves a principal. It is a rehearsal, not a CIBIL-based sanction.

The cash-flow question

A family in Visakhapatnam earning ₹75,000 a month with a ₹5,000 car EMI wants a ballpark before they pay a processing fee. At 9% for 20 years the affordable new EMI in this model is ₹32,500 and the eligible principal is about ₹36.12 lakh. That number is useful for filtering listings; it is not an approval.

The maths on this page

Affordable EMI = max(0, 50% of monthly income − existing EMIs). Eligible principal is the loan whose EMI at the typed rate and tenure equals that affordable EMI (the inverse of the standard EMI formula). Defaults: income ₹75,000, existing EMI ₹5,000, 9%, 20 years.

Banks also haircut variable income, add proposed EMIs from other applications, and read bureau scores. Self-employed files need ITRs. None of that is in this sketch.

FOIR of 50% is an assumption printed in the result. Some housing-finance companies go higher for high-income salaried staff and lower for riskier profiles. Ask the lender for their grid.

₹75,000 income in Visakhapatnam, one small EMI already

Suresh takes home ₹75,000 and already pays ₹5,000 on a two-wheeler loan. At 9% for 20 years IndiaKit’s 50% FOIR sketch says he can service about ₹32,500 more EMI, which supports roughly ₹36.12 lakh of principal. He uses that to drop 4-BHK listings he cannot carry, then lets the bank run the real policy.

What a bank still has to confirm

No credit score, no employer stability, no property valuation. LTV caps and income-footing rules will cut this number. Processing fees are extra.

Common questions

Why 50% FOIR and not 40% or 60%?

Fifty percent is a transparent planning default on this site. Your lender’s product note may use a different ratio by income band. If they use 40%, type a lower income or raise existing EMIs to mimic the tighter cap.

Does a higher tenure always raise eligibility?

Yes in this formula, because a longer n lowers EMI per rupee of principal. Banks still cap tenure by age at maturity and by product (home vs personal).

Are credit-card minimums counted as EMIs?

Often as obligations, yes, in a full underwrite. This tool only subtracts the existing-EMI field you type. Include card EMIs there if you want a harsher rehearsal.