What is the Loan Eligibility Calculator?
Banks approve a loan not on how much you want but on how much your income can service after existing commitments. The FinanceDeck Loan Eligibility Calculator applies the industry-standard 50% FOIR (Fixed Obligation to Income Ratio) to reveal the maximum loan you'll likely be sanctioned.
Use it before house hunting so you shop for property in your real budget, or before a car purchase so you know how much down payment you'll need. It saves the awkward last-minute rejection or forced reduction of your dream property size.
How does it work?
The calculator assumes banks allow up to 50% of monthly income to go towards total EMIs (including any existing ones you enter). It then reverse-solves the EMI formula for principal — given your available EMI capacity, the offered rate and the tenure you can commit to.
Longer tenure = higher eligibility because the EMI shrinks. That's why a 20-year home loan qualifies you for a bigger amount than a 10-year one — but at the cost of much higher total interest.
Eligible P = EMI capacity × ((1 + r)^n − 1) / (r × (1 + r)^n)Example
Monthly income ₹80,000, existing EMIs ₹5,000. Bank allows 50% FOIR, so EMI capacity is ₹35,000.
At 8.5% for 20 years, this qualifies you for a home loan of approximately ₹40.3 lakh. Reducing tenure to 15 years cuts eligibility to ₹35.5 lakh but saves ~₹18 lakh in total interest.
Benefits
- ✓Know your realistic budget before house hunting
- ✓Model different tenures and their trade-offs
- ✓Avoid rejection at the sanction stage
- ✓Plan required down payment accurately
- ✓Compare eligibility across banks at different rates
Frequently Asked Questions
Is 50% FOIR always applied?
It's the common ceiling for home loans, but personal loans may cap it at 40%. Higher salaries can sometimes stretch to 60%.
Does credit score affect eligibility?
Yes. A score below 700 can reduce the sanctioned amount or push you into higher rate slabs.
Are age and job type considered?
Yes. Banks want the loan to end before retirement age, so older applicants get shorter tenures. Self-employed applicants are assessed on ITRs, not gross income.
Can I improve my eligibility?
Yes — pay off existing loans, add a co-applicant with income, extend tenure, or apply after a raise.
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Learn more in the Learning Center
Deep-dive guides that explain the concepts behind the Loan Eligibility Calculator.