How much loan can I get? Estimate your eligibility

Steps

1. Take your monthly take-home income. Here it is ₹1,00,000.
2. Add up the EMIs and other obligations you already pay each month.
3. Enter the share of income lenders allow for EMIs (called FOIR), the rate and the tenure in the eligibility calculator.
4. Read the affordable EMI and the estimated eligible loan.
5. Treat it as an estimate: lenders also check your credit score, age, job and the value of the property or vehicle.

How the estimate is worked out

The affordable EMI is income × FOIR − existing EMIs: 1,00,000 × 50% = ₹50,000. The loan that this EMI can repay is found by running the EMI formula backwards, using the rate and the tenure. At 8.5% for 20 years, ₹50,000 a month repays about ₹57,61,542.

The FOIR share is set by the lender and varies, so use the figure your lender quotes, and try a lower one to be careful.

What moves the answer

Existing EMIs come straight off the affordable EMI. With ₹20,000 of other EMIs the affordable EMI falls to ₹30,000 and the loan to about ₹34,56,925. If the FOIR is 40% instead of 50%, the loan falls to about ₹46,09,234.

A longer tenure raises the amount you can borrow: 25 years instead of 20 gives about ₹62,09,428. A higher rate lowers it: at 9.5% the loan is about ₹53,64,052. The extra amount from a longer tenure comes with much more interest, so look at the total cost too.

Eligible is not the same as comfortable

Borrowing the maximum leaves no room for a rate rise, a job gap or a big expense. Many people choose a loan well below the limit. Use the EMI calculator on the amount you plan to borrow and check that you could still save every month after paying it.