EssentialCalc

Salary-Based Loan Calculator

Wondering how much a bank will lend you? Our calculator uses industry-standard formulae to estimate your loan capacity based on your income and existing debts.

Maximum Loan Eligibility

₹0

Recommended Max EMI

₹0

Based on 50% FOIR banking standard

How is Loan Eligibility Calculated?

Banks don't just look at your salary; they look at your disposable income. The primary metric used is the Fixed Obligation to Income Ratio (FOIR).

The 50% Rule (FOIR)

Most financial institutions believe that a person should not spend more than 50% of their monthly net income on loan repayments (EMIs).

FOIR Calculation: (Total Monthly EMIs / Total Monthly Income) x 100

Factors That Increase Your Eligibility:

  • Longer Tenure: Spreading the loan over 30 years instead of 20 lowers the EMI, which increases the total amount you can borrow.
  • Co-Applicant: Adding a spouse or parent with a steady income combines your borrowing power.
  • Clearing Old Debts: Closing small credit card or personal loans increases your surplus income.