Loan Eligibility Calculator
Find out how much loan you can get based on your income, existing EMIs, interest rate, and loan tenure.
What Is Loan Eligibility?
Loan eligibility refers to the maximum loan amount a lender is willing to offer based on your income, existing financial obligations, interest rate, and loan tenure. Banks and financial institutions globally follow income-to-EMI ratio guidelines to assess repayment capacity.
How Loan Eligibility Is Calculated
Most lenders allow up to 40%–50% of your monthly income to be used towards EMIs. Existing EMIs are deducted, and the remaining amount determines how much loan you can afford.
Loan Eligibility Formula
Eligible Loan Amount = EMI × [(1+r)^n − 1] / [r × (1+r)^n]
Factors Affecting Loan Eligibility
- Monthly income
- Existing loans and EMIs
- Interest rate
- Loan tenure
- Credit score
Why Use a Loan Eligibility Calculator?
- Plan loan amount before applying
- Avoid rejection due to over-borrowing
- Compare different loan scenarios
- Better financial planning
This calculator works globally for home loans, personal loans, car loans, and education loans.