Personal Loan Eligibility Calculator
Two industry rule-of-thumb methods, calculated side by side — both indicative only.
Lenders do not all use one formula, but two rules of thumb come up often. The FOIR method works out how much of your net monthly income can go toward EMIs (this tool uses 40% below ₹25,000 a month, 50% from ₹25,000 to ₹1,00,000, and 58% above that), subtracts your existing EMIs, and converts what is left into a loan amount at your chosen rate and tenure. The income-multiplier method is simpler: a multiple of monthly net salary, commonly somewhere between 10 and 24 times, depending on the lender and your profile.
In practice, a lender's decision rests on its own credit policy: your credit score and repayment history, the type and stability of your employment, your age, your existing obligations, and sometimes your relationship with the bank. Treat the two figures below as a range to test, not a promise.
Your Details
Max affordable EMI: ₹0
Both figures are indicative only — see disclosure below.
This is an estimate, not an offer. The figures above are indicative calculations based on the numbers you entered and standard industry formulas/rules of thumb. They are not a loan/insurance quote, a pre-approval, or a guarantee of approval by any bank, NBFC, or insurer. Actual eligibility, interest rate, premium, and approval are decided solely by the lender/insurer after their own underwriting and verification.
Worked Example
Take the default inputs: ₹60,000 net monthly income, ₹5,000 of existing EMIs, 13% a year, 60 months, and a 16× multiplier.
- FOIR method: ₹60,000 falls in the 50% tier, so total EMIs can be up to ₹30,000. Subtracting the existing ₹5,000 leaves ₹25,000 as the maximum new EMI. At 13% over 60 months, that supports a loan of about ₹10,98,753.
- Income-multiplier method: 16 × ₹60,000 = ₹9,60,000. At the same rate and tenure, the EMI on that amount is ₹21,843.
The two methods give a range of roughly ₹9.6 lakh to ₹11 lakh, and the lower figure is the more cautious planning number. Note that the multiplier method ignores your existing EMIs, the rate, and the tenure, which is one reason the two can differ.
To see what a loan of a given size costs month by month, use thePersonal Loan EMI Calculator, and to check how much of your income the new EMI would take, try the FOIR Calculator.
Frequently Asked Questions
What is FOIR and why does it matter for loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your net monthly income that goes toward EMIs and other fixed obligations. Lenders cap this ratio to make sure you can comfortably repay a new loan.
Why do I see two different eligibility numbers?
The FOIR method estimates eligibility from your repayment capacity at a chosen rate and tenure. The income-multiplier method is a simpler industry rule of thumb (roughly 10–24x monthly net salary). Both are indicative only — lenders may use either or a different method entirely.
Will I definitely get approved for the amount shown?
No. This tool gives an indicative estimate only. Final eligibility depends on the lender’s own credit policy, your credit score, employment stability, and underwriting.