Loan Eligibility Calculator
Calculate your loan eligibility online based on income, expenses, and other factors.
Loan Eligibility Calculator
Find out how much you can borrow. Estimate your loan eligibility based on your financial details.
Your Financial Details
50,000
10,000
8.5 %
10 Years
Max. Loan Amount
0
Affordable EMI
0
Debt-to-Income Ratio
0 %
How is Loan Eligibility Calculated?
Loan eligibility is primarily determined by a bank or lender's assessment of your ability to repay the loan. A key factor is your **Debt-to-Income (DTI) ratio**, which compares your total monthly debt payments to your gross monthly income. Lenders typically prefer a DTI ratio below a certain threshold (e.g., 40-50%) to ensure you have enough income left to comfortably make your new EMI payments.
The calculation involves estimating your **maximum affordable EMI** first, which is a percentage of your monthly income after accounting for your existing monthly debts. From there, the calculator works backwards using the interest rate and loan tenure to determine the maximum principal amount you can borrow.