How is loan eligibility calculated?

Lenders apply the FOIR (Fixed Obligation to Income Ratio) rule — typically 50% of net monthly income for salaried borrowers and 40% for self-employed. Your maximum EMI = (Income × FOIR) − existing EMIs. The eligible loan equals the present value of that EMI at the offered rate and tenure.

Why does the eligible amount differ across home, personal, and business loans?

Each product has a separate income-multiplier ceiling: home loans up to ~60× monthly income, business loans ~36×, and personal loans ~30×. Even if your FOIR allows a larger EMI, the lender caps the principal by these multipliers.

How does my age affect eligibility?

Lenders cap the loan tenure so it ends by retirement age — 60 for salaried, 65 for self-employed. If you're 50 and apply for a 30-year home loan, your effective tenure shrinks to ~10 years, raising the EMI and lowering the eligible amount.

Do existing EMIs reduce my eligibility?

Yes. Every existing EMI (car loan, credit-card minimum due, personal loan) is deducted from your FOIR-allowed amount before computing the new eligible loan. Closing small loans before applying can meaningfully boost eligibility.

What CIBIL score do I need to get the rates shown?

Rates in the lender comparison table are 'prime' rates, usually requiring CIBIL 750+. Borrowers with 700–749 typically pay 25–75 bps higher; below 700 may face significant premiums or rejection.

Will adding a co-applicant improve my eligibility?

Yes. Lenders club the income of co-applicants (usually spouse or parents) when computing FOIR, often doubling the eligible loan. This is the most common way to bridge an eligibility gap for home loans.

Folio 09 · Loan Eligibility Calculator

Loan Eligibility Calculator

Reviewed by Jay Patel· Last reviewed: 01 Aug 2026

Jay Patel

Co-Founder & Chief Loan Advisor

Enter your income and obligations to check how much loan you can get.

What makes this calculator different

Applies separate FOIR ceilings (50% salaried, 40% self-employed) AND product-specific income-multiplier caps (home loan 60x monthly, business loan 36x, personal loan 30x) — most calculators ignore the multiplier cap and overstate eligibility.

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