What Determines Loan Eligibility?
Banks use a Fixed Obligation to Income Ratio (FOIR) to decide the maximum EMI you can afford – typically 40–50% of your net monthly income, less any existing EMIs. The calculator works backwards from this to compute the maximum loan you can get at the chosen rate and tenure.
How to Improve Eligibility
Clear existing small loans, add a co-applicant, lengthen the tenure, improve your credit score above 750, and show stable income history. Each of these can lift eligibility by 10–30%.
Frequently Asked Questions
What is FOIR?
Fixed Obligation to Income Ratio – the portion of your income banks allow towards loan EMIs. Typically 40–50%.
Do banks count bonuses in income?
Usually only the fixed portion of salary is counted. Variable pay is sometimes averaged over 12 months.