Loan Eligibility Calculator
How much can you actually borrow? Enter your income, existing EMIs, and CIBIL score — get the real eligible amount for personal, home, car, and education loans, with a live FOIR gauge and a step-by-step plan to borrow more.
Auto: 48 months
At 10.5% p.a. · EMI: ₹22,000/mo · Tenure: 48 months
What is loan eligibility and how do banks calculate it?
Loan eligibility is the maximum amount a bank will lend you, based on one core principle: your monthly EMI payments must not push your total debt burden beyond a safe fraction of your income. Every major Indian bank uses a measure called FOIR (Fixed Obligation to Income Ratio) to enforce this.
The calculation is three steps:
- Max allowed EMI = Monthly net income × FOIR limit. If your income is ₹60,000 and the bank's FOIR limit is 45%, your max EMI across all loans is ₹27,000.
- Available EMI headroom = Max allowed EMI − existing monthly EMIs. If you already pay ₹8,000/month on a car loan, your headroom is ₹19,000.
- Max eligible loan = headroom converted via reverse PMT formula using the interest rate and tenure. At 10.5% for 48 months, ₹19,000/month → ≈ ₹7.4 L eligible.
What is FOIR — and why it matters more than salary
FOIR (Fixed Obligation to Income Ratio) is the single most important eligibility parameter — and the one most borrowers don't know about until their loan is rejected.
Banks don't just check your salary; they check how much of your salary is already committed to existing debt. If your FOIR post-new-loan exceeds their limit, you're declined — regardless of income level. Standard limits:
| Loan type | Salaried (private) | Government / PSU | Self-employed |
|---|---|---|---|
| Personal loan | 40–45% | 50–55% | 35–40% |
| Home loan | 45–50% | 55% | 40–45% |
| Car loan | 40–45% | 50% | 40% |
| Education loan | 40% | 45% | 40% |
Government employees get higher FOIR limits because their income is stable, pensioned, and nearly impossible to lose — meaning lenders see less default risk.
How much personal loan can you get on your salary? (2026 reference table)
Assumes: salaried employee, no existing EMIs, CIBIL 750+, 10.5% interest rate, 48-month tenure. These are indicative — actual sanction varies by lender and employer category.
| Monthly net salary | Max EMI (45% FOIR) | Max personal loan | Max home loan (50% FOIR · 20yr) | Max car loan (45% FOIR · 60mo) |
|---|---|---|---|---|
| ₹20,000 | ₹9,000 | ₹3.5 L | ₹11.4 L | ₹4.4 L |
| ₹25,000 | ₹11,250 | ₹4.4 L | ₹14.3 L | ₹5.5 L |
| ₹30,000 | ₹13,500 | ₹5.3 L | ₹17.2 L | ₹6.6 L |
| ₹40,000 | ₹18,000 | ₹7.0 L | ₹22.9 L | ₹8.8 L |
| ₹50,000 | ₹22,500 | ₹8.8 L | ₹28.6 L | ₹11.0 L |
| ₹60,000 | ₹27,000 | ₹10.5 L | ₹34.3 L | ₹13.2 L |
| ₹75,000 | ₹33,750 | ₹13.2 L | ₹42.9 L | ₹16.5 L |
| ₹1,00,000 | ₹45,000 | ₹17.6 L | ₹57.2 L | ₹21.9 L |
| ₹1,50,000 | ₹67,500 | ₹26.4 L | ₹85.8 L | ₹32.9 L |
Every existing EMI of ₹5,000/month reduces your personal loan eligibility by approximately ₹2.0 L and home loan eligibility by approximately ₹5.7 L.
How CIBIL score changes your eligible loan amount
CIBIL score affects two things simultaneously: whether the bank approves your application at all, and the interest rate they charge. A higher rate means a higher EMI per lakh — so the same EMI headroom supports a smaller loan.
Example: ₹50,000 monthly salary, no existing EMIs, 48-month personal loan:
| CIBIL score range | Indicative rate | FOIR limit | Max EMI | Max loan eligible |
|---|---|---|---|---|
| 750+ (Excellent) | 10.5% | 45% | ₹22,500 | ₹8.8 L |
| 700–749 (Good) | 13.5% | 45% | ₹22,500 | ₹8.3 L |
| 650–699 (Fair) | 18% | 45% | ₹22,500 | ₹7.7 L |
| 600–649 (Poor) | 24% | 40% | ₹20,000 | ₹6.1 L |
Moving from a 650–699 CIBIL to 750+ on a ₹50K salary can unlock an additional ₹1.1 L in eligible amount — just from the rate improvement.
Documents required for each loan type
Personal loan (salaried)
- PAN + Aadhaar
- Last 3 months salary slips
- Last 6 months bank statements
- Form 16 / ITR (1–2 years)
Personal loan (self-employed)
- PAN + Aadhaar + address proof
- Last 2 years ITR + P&L + balance sheet
- Last 12 months bank statements
- GST registration / trade licence
Home loan (additional)
- Property documents (sale deed, NOC)
- Builder's approvals / plan sanction
- Encumbrance certificate
- Property valuation report
Car loan (additional)
- Dealer's proforma invoice / quotation
- RC of vehicle being exchanged (if any)
- Insurance details for used car
7 ways to improve your loan eligibility — with timelines
- Pay off the smallest existing loan (days to 30 days). Closing a loan reduces your existing FOIR obligation immediately. Once the lender reports the closure to CIBIL (30–45 days), your eligibility improves proportionally. Example: paying off a ₹5,000/month EMI on a ₹50K salary can add ₹2.0 L to your personal loan eligibility.
- Reduce credit card outstanding to below 30% utilisation (30–45 days). High utilisation is the second-biggest CIBIL score killer. Paying down your card balance to below 30% of the limit raises your score 20–50 points within 30 days of the next CIBIL update.
- Add a co-applicant or guarantor (immediate). Banks combine incomes. A working spouse or adult child adds directly to the FOIR base, proportionally expanding the eligible loan. The lower CIBIL score between the two applicants is typically used — ensure your co-applicant has a clean credit history.
- Request a credit limit increase on existing cards (immediate). If you use ₹50K of a ₹1L limit (50% utilisation), getting the limit raised to ₹2L drops utilisation to 25% — improving your CIBIL score without any change to your spending.
- Avoid new loan applications for 6 months (ongoing). Each hard enquiry drops your score by 5–10 points. Multiple enquiries in 6 months signal credit-hungry behaviour to lenders. Use eligibility calculators (like this one) to pre-check before applying.
- Extend your loan tenure (negotiable with lender). A longer tenure reduces EMI per lakh, allowing a larger loan for the same EMI headroom. Trade-off: significantly more total interest paid.
- Switch to a salary account with the lending bank (1–3 months). Most banks offer 0.5–1% rate concessions and higher FOIR limits to borrowers who hold their salary account with them. SBI, HDFC, and ICICI explicitly publish salary-account rate benefits.
Salaried vs self-employed: how banks treat income differently
Salaried
Banks use net monthly take-home (after PF, tax, deductions). They verify this with 3 salary slips and 6 months bank statements. Income is considered 100% stable. FOIR 45–50%.
Self-employed
Banks use average net profit from last 2–3 years' ITR. They typically count 50–80% of stated income as eligible (after accounting for business risk and income volatility). FOIR 40–45%, rates 0.5–2% higher. Income must be consistent — a sharp dip in year 2 raises flags.
If your business income fluctuates, apply in the year with the highest consistent ITR. Banks look at trend: consistent growth is better than one high year followed by a dip.
Home loan vs personal loan eligibility: the key differences
For the same income, home loan eligibility is typically 5–8× higher than personal loan eligibility. Why:
- Tenure: Home loans run up to 30 years; personal loans up to 7 years. A ₹20,000/month EMI supports ₹2.5L personal loan (48mo) vs ₹22.7L home loan (240mo).
- Rate: Home loans (secured, 8.6%+) are 2–4% cheaper than personal loans (unsecured, 10.5%+). Lower rate = more loan for same EMI.
- FOIR: Banks allow 50–55% FOIR for home loans vs 45% for personal loans, because the property collateral reduces default risk.
Related calculators
Frequently asked questions
How much personal loan can I get on a ₹25,000 salary?
On a ₹25,000 net monthly salary with no existing EMIs, a 750+ CIBIL score, and a 45% FOIR: Available EMI = ₹11,250/month. At 10.5% p.a. over 48 months, maximum personal loan ≈ ₹4.4 L. With a 700–749 CIBIL score (13.5% rate), eligibility drops to ≈ ₹4.2 L. With existing EMIs of ₹5,000, the eligible amount on 750+ CIBIL drops further to ≈ ₹2.4 L.
Can I get a personal loan with a 650 CIBIL score?
Mainstream banks (SBI, HDFC, ICICI) generally decline applications below 700 CIBIL. NBFCs like Bajaj Finance, Fullerton India, IIFL Finance, and Moneyview lend at 650–699 CIBIL, but at significantly higher rates (18–30% p.a.). This substantially reduces your eligible amount for the same income. At 18%, a ₹50K salary → eligible ≈ ₹7.7 L vs ₹8.8 L at 10.5% — a large difference driven purely by the rate.
Does applying to multiple banks improve my chances?
No — it actively hurts you. Each lender does a hard enquiry on your CIBIL report when you apply. Multiple enquiries within 6 months lower your score (each one drops it 5–10 points) and signal "credit-hungry" behaviour to future lenders. The right approach: use an eligibility calculator to identify likely-eligible lenders, then apply to one or two. If declined, address the reason (CIBIL, FOIR, employer category) before applying again.
What is the difference between pre-approved and regular personal loans?
Pre-approved loans are offers made by your existing bank based on your salary account transactions and prior repayment history — they skip the hard underwriting process. They're faster (sometimes minutes) but often not the cheapest. The rate on a pre-approved offer is set by the bank — it's worth comparing with the open market before accepting. Regular loans require full documentation and underwriting, but you can negotiate terms.
Does my employment gap affect loan eligibility?
Yes. Lenders require minimum continuous employment (typically 6–24 months with the current employer). Most banks require: (1) total work experience of 2+ years, (2) current job tenure of 6+ months (12 months preferred). If you switched jobs within the past 3–6 months, some banks will add the previous employer's tenure if there was no gap. A gap of even 1–2 months between jobs can flag an application for manual review.
How does an education loan differ from a personal loan?
Education loans are taken for specific courses and require an admission letter. They come with a moratorium period (repayment starts after course completion + 1 year or 6 months after getting a job, whichever is earlier). Interest during moratorium can be claimed under Section 80E for up to 8 years. The bank evaluates the co-borrower's (parent's) income for eligibility — the student is the primary borrower. Rates are 9–14% depending on the institution and bank.
Is ITR necessary for a personal loan if I am salaried?
ITR is not always mandatory for salaried employees — salary slips + Form 16 + bank statements are usually sufficient for loan amounts up to ₹10–15 lakh. For amounts above ₹15 lakh, or if your income is variable (includes commission/incentives), most banks require the last 2 years' ITR. ITR also helps if your salary account shows irregular credits (e.g., if salary is credited in parts or you have freelance income on top).
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