🏦 Loan Eligibility
FreeDetermine the maximum loan amount you can borrow from banks based on your salary, existing EMIs, and interest rate.
Loan Eligibility Inputs
FOIR Standards₹30,56,486
Estimated loan eligibility amount based on income and liabilities.
₹27,500
Maximum EMI banks will allow for this new loan.
Lending Eligibility Parameters
Maximum percent of income banks allocate to debt.
Total maximum monthly payments (old + new).
Current debt status analysis.
How to Boost Your Loan Eligibility Amount
Clear Small Debts First
Paying off small credit cards or personal loans frees up your FOIR threshold, immediately increasing eligible principal.
Add a Co-Applicant
Adding a working spouse or parent combines their gross income, giving banks a higher combined borrowing ceiling.
Opt for Longer Tenure
Increasing the loan term (e.g. from 15 to 20 years) drops individual EMI obligations, boosting maximum eligible loan size.
Declare Other Income
Provide banks proof of steady rental income, annual bonuses, or investments dividend payouts to supplement base salary.
How Banks Calculate Loan Eligibility (The FOIR Rule)
When you apply for a loan, banks evaluate your credit capacity. The primary metric used is the Fixed Obligation to Income Ratio (FOIR). This ratio determines what percentage of your gross monthly salary can go toward paying active debt liabilities (such as home, car, or credit card EMIs).
The Standard Bank FOIR Thresholds:
- Income Under ₹30,000: Banks restrict FOIR to 40%. They want to ensure you have at least 60% of your earnings left for daily living expenses.
- Income Between ₹30,000 & ₹50,000: FOIR cap is raised to 45%.
- Income Between ₹50,000 & ₹1,00,000: FOIR cap is generally set at 50%.
- Income Above ₹1,00,000: High-earning individuals are granted a FOIR of up to 55% to 60%, as their remaining net cash is comfortable.
To find your max loan size, the bank calculates your allowed EMI obligation, deducts your existing monthly EMIs, and applies the remaining amount to a Present Value (PV) formula based on the tenure and interest rate.