Loan eligibility calculator

Last updated

An estimate of the largest EMI and loan your income may support, from the share of income lenders allow for EMIs.

Take-home pay after tax and deductions. Nothing you enter is stored.

An assumption you can change. Lenders set their own limit, often depending on your income and job.

The rate offered to you. Finobazaar does not fill in a lender's rate.

Numbers only; commas are fine. Tenure up to 40 years (480 months). What you enter is used for this calculation only and is not stored.

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How the estimate works

Lenders limit how much of your monthly income can go to EMIs, often called FOIR (fixed obligations to income ratio). From your income, the EMIs you already pay and that share, the calculator works out the largest new EMI and the loan that EMI could repay at the rate and tenure you enter.

Largest new EMI = income × share − existing EMIs; largest loan = EMI × (1 − (1 + r)^−n) ÷ r

An estimate, not an approval

The share of income is an assumption you can change. Lenders also consider your credit score and history, job and employer, age, the property and their own policy, so they may offer a different amount. Nothing you enter here is stored, and the form is sent without putting your income in the page address.

Ways to raise eligibility

  • Add a co-applicant with income.
  • Close small loans or credit card dues first.
  • A longer tenure lowers the EMI, but raises the total interest.

Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.

Frequently asked questions

Which formula does the loan eligibility calculator use?

Largest new EMI = income × share − existing EMIs; largest loan = EMI × (1 − (1 + r)^−n) ÷ r
P is the loan amount, r the rate per instalment as a decimal (annual rate ÷ 100 ÷ instalments a year) and n the number of instalments.
The explanation below the calculator sets out each step and what the result leaves out.

What details do I need for the loan eligibility calculator?

You need: your net monthly income, lender assumptions, share of income that may go to all EMIs, interest rate and tenure. Optional: co-applicant's net monthly income, EMIs you already pay each month and loan you want. Take the figures from the lender's offer or key fact statement where you have one.

Does the calculator use a bank's interest rate?

No. You enter the rate offered to you. Finobazaar does not fill in a lender's rate, because rates depend on the lender, your profile and the date.

Is the result a loan offer or an approval?

Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.

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