Find out how much loan you can get based on your income. Compare eligibility across 29+ banks and NBFCs.
Loan eligibility refers to the maximum loan amount a bank or financial institution will approve for you. It is determined by factors including your monthly income, existing financial obligations, credit score, age, and employment type.
Banks use the FOIR (Fixed Obligation to Income Ratio) method to calculate your eligibility. Here's how it works:
Formula: Max EMI = (Monthly Income × FOIR) - Existing EMIs. Then the max loan amount is derived using the reverse EMI formula.
Loan eligibility is the maximum loan amount a bank will approve for you based on your monthly income, existing obligations, credit score, age, and employment type. Banks use FOIR (Fixed Obligation to Income Ratio) to determine this.
Banks use the FOIR method. They allow 40-60% of your gross monthly income for total EMI payments. After deducting existing EMIs, the remaining allowed EMI is converted to a maximum loan amount using the interest rate and tenure.
FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your monthly income that banks allow for all EMI payments. Typically, banks use a FOIR of 40-60% depending on the loan type and your income level.
You can increase eligibility by: improving your CIBIL score to 750+, clearing existing loans, adding a co-applicant, choosing a longer tenure, showing additional income sources, and maintaining stable employment.
Yes. A CIBIL score of 750+ gets you the best rates and higher loan amounts. Below 700, you may face higher rates or rejection. Below 650, most banks will not approve your loan application.