How This Loan Eligibility Calculator Works

The Loan Eligibility Calculator above uses the same FOIR (Fixed Obligation to Income Ratio) method Indian banks and NBFCs use internally to decide how much you can borrow. Enter your monthly income, any EMIs you’re already paying, your expected interest rate and tenure, and pick a FOIR band — the calculator instantly shows the maximum loan amount you’re likely to qualify for, along with the EMI that amount would require.

It works for four loan types — home, personal, car and education — each with different typical interest rates and tenure limits, so switching between them updates the defaults to match how that loan category is actually priced in the market right now. Once you know your eligible amount, pair it with our full library of financial calculators to plan the EMI, tenure and down payment together.

What Is FOIR, and Why Do Lenders Use It?

FOIR stands for Fixed Obligation to Income Ratio — the share of your gross monthly income that goes toward fixed repayment obligations: existing loan EMIs, credit card minimum payments, and the EMI for the new loan you’re applying for. Lenders cap this ratio because it’s the single clearest indicator of whether a borrower can comfortably service a loan without financial strain.

• 40% FOIR (conservative): used for lower-income applicants or those with a thinner credit history — a cautious cap that limits eligibility but reduces default risk.
• 50% FOIR (standard): the most common band for salaried applicants with a stable income and reasonable credit score.
• 60–65% FOIR (aggressive to maximum): reserved for high-income applicants, those with excellent credit scores (750+), or long-standing customers with a strong banking relationship.

Your FOIR band, more than almost any other single input, determines your final loan eligibility — which is why the calculator lets you toggle it directly rather than hiding it as a fixed assumption.

How the RBI Repo Rate Affects Your Loan Eligibility in 2026

The Reserve Bank of India’s Monetary Policy Committee held the repo rate at 5.25% at its August 2026 meeting — the fourth consecutive hold after a run of cuts earlier in the cycle. Because most floating-rate home loans are priced as repo rate plus the lender’s spread, this keeps the average home loan rate in India around 8.5% in 2026, with the best-priced loans from public sector banks starting closer to 7.35% for well-qualified borrowers.

This matters directly for eligibility: a lower interest rate means more of your fixed EMI budget goes toward principal rather than interest, which increases the total loan amount you can service. If your bank passes on a rate cut, re-running this calculator with the new rate will show a higher eligible amount on the exact same income and EMI budget.

How Much Home Loan Can I Get on a ₹40,000 Salary?

This is one of the most common questions borrowers search for, and the honest answer is: it depends on your existing debt and the FOIR your lender applies — but here’s a realistic worked example.

If you already have an existing EMI — say ₹5,000/month for a car loan — your affordable EMI for the new loan drops to ₹15,000, reducing your eligible home loan to roughly ₹17.3 lakh. This is exactly why clearing smaller debts before a home loan application can meaningfully raise what you qualify for. Use the calculator above with your own numbers for a figure specific to you.

Can I Get a Home Loan on a ₹30,000 Salary?

Yes — a ₹30,000 monthly salary is well within range for most public and private sector lenders, provided your existing obligations are low and your credit score is healthy.

Adding a co-applicant — a spouse or parent with a steady income — is the single biggest lever at this income level, since lenders combine both incomes when calculating FOIR, often lifting eligibility substantially.

Eligibility Factors by Loan Type

Home Loans

Home loans get the longest tenures (up to 30 years) and lowest rates because the property itself secures the loan. Lenders also apply a Loan-to-Value cap — typically 75–90% of the property’s value — on top of the FOIR-based income check.

Personal Loans

Unsecured, so lenders price them higher (typically 10.5%–16% in 2026) and cap eligibility more tightly — often around 20–24 times your monthly income, regardless of what the FOIR calculation alone would suggest.

Car Loans

Secured against the vehicle, so rates sit between home and personal loans. Tenure is usually capped at 5–7 years, and many lenders finance up to 85–90% of the on-road price.

Education Loans

Often the most flexible on income requirements for the student themselves, since approval typically also weighs a co-applicant’s (usually a parent’s) income and the reputation of the institution or course.

Common Mistakes That Hurt Loan Eligibility

1. Applying with multiple existing EMIs still active. Every rupee of existing EMI directly reduces what a new lender will offer.
2. Ignoring your credit score before applying. A score under 700 can mean a higher rate or a flat rejection, even with strong income — check yours via CIBIL before you apply.
3. Not declaring all income sources. Rental income, freelance work, or investment income — if it’s verifiable, it can be included and can meaningfully raise eligibility.
4. Choosing too short a tenure. A shorter tenure raises your EMI, which lowers the loan amount you’ll qualify for under the same FOIR cap — even though it saves total interest.
5. Applying at multiple banks in a short window. Each hard credit inquiry can nudge your score down slightly, which compounds against you right when you need it most.

Frequently Asked Questions