Find out the maximum loan amount you are eligible for based on your income, existing obligations and loan terms.
Last updated: March 2026
This free online tool helps you estimate the maximum loan amount you can get from Indian banks and NBFCs based on your income and financial obligations. Here is how to use it:
When you apply for a loan, banks evaluate your repayment capacity using a combination of income assessment, credit history and obligation ratios. The core calculation involves two steps:
Max EMI = (Monthly Income − Existing EMIs) × EMI-to-Income Ratio
Once the maximum affordable EMI is determined, the bank reverse-calculates the loan principal using the standard EMI formula:
Max Loan = EMI × [(1 + r)n − 1] / [r × (1 + r)n]
| Symbol | Meaning |
|---|---|
| EMI | Maximum monthly EMI you can afford after deducting existing obligations |
| r | Monthly interest rate = Annual rate / 12 / 100 (e.g., 8.5% → 0.007083) |
| n | Total number of monthly instalments = Years × 12 (e.g., 20 years → 240) |
Suppose your monthly net income is ₹50,000, you have no existing EMIs, the interest rate is 8.5% p.a., tenure is 20 years, and the bank allows 50% FOIR:
FOIR is one of the most important metrics banks use when assessing loan eligibility. It measures what percentage of your gross or net monthly income is already committed to fixed financial obligations such as EMIs, rent, insurance premiums and credit card minimum payments.
Most Indian banks maintain the following FOIR thresholds:
A lower FOIR means you have more disposable income, which makes banks more confident about your ability to repay. If your FOIR is already high (above 50%), consider closing some existing loans before applying for a new one.
Banks in India assess loan eligibility based on several factors: your monthly net income, existing loan obligations (EMIs), CIBIL/credit score, age, employment type and stability, and the loan-to-value (LTV) ratio for secured loans. The most important factor is your Fixed Obligation to Income Ratio (FOIR), which determines how much of your income can go towards EMI payments. Most banks allow a FOIR of 40% to 60% depending on income level and loan type. Additionally, salaried applicants with stable employment in reputed companies often receive more favourable terms compared to those with irregular income.
Your CIBIL score (ranging from 300 to 900) plays a critical role in loan approval and the interest rate offered to you. A score above 750 is considered excellent and qualifies you for the best interest rates and highest loan amounts. Scores between 650 and 750 may still get approval but at higher rates, which effectively reduces the loan amount you can service with the same EMI. Below 650, most banks will either reject the application or offer loans at significantly higher interest rates. Maintaining timely payments on all existing loans and credit cards is the single most effective way to keep your score high.
FOIR stands for Fixed Obligation to Income Ratio. It represents the percentage of your monthly income that goes towards repaying all loan EMIs, including the proposed new loan. Banks typically cap FOIR at 40% to 60%. For example, if your monthly income is ₹1,00,000 and the bank allows 50% FOIR, your total EMI obligations (existing plus new) cannot exceed ₹50,000. If you already pay ₹10,000 in EMIs, the maximum EMI for your new loan would be ₹40,000. Keeping your FOIR low by clearing existing debts is one of the best ways to maximise your new loan eligibility.
Adding a co-applicant (typically a spouse or parent) combines both incomes for eligibility calculation, which can significantly increase the maximum loan amount you qualify for. For home loans, banks often mandate adding a co-owner as co-applicant. The co-applicant's income is added to yours, and both credit scores are considered. For instance, if you earn ₹50,000 per month and your spouse earns ₹40,000, the combined income of ₹90,000 is used for eligibility assessment, which can nearly double your eligible loan amount compared to applying alone.
You can improve loan eligibility by: (1) paying off or closing existing loans and credit card dues to reduce your FOIR, (2) improving your CIBIL score by paying all bills on time and keeping credit utilisation below 30%, (3) adding a co-applicant with additional income, (4) choosing a longer loan tenure to reduce monthly EMI, (5) opting for a step-up EMI plan where EMIs start low and increase over time, (6) showing additional income sources like rental income or freelancing with proper documentation, and (7) making a larger down payment for secured loans to reduce the required loan amount.
Pre-approved loans are offers extended by banks to their existing customers based on transaction history, salary credits and account behaviour. While they indicate a high probability of approval, they are not guaranteed. The bank will still verify your current income, credit score and existing obligations before final sanction. Pre-approved offers often come with competitive interest rates and faster processing (sometimes disbursement within 24 hours), but the final loan amount and terms may differ from the initial offer after the detailed assessment is completed.