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Loan Eligibility Calculator — Home, Personal, Car & LAP
Check loan eligibility based on income, existing EMIs, tenure and interest rate. Includes FOIR, CIBIL impact and Indian bank multipliers.
What Determines Loan Eligibility?
Banks evaluate three core factors: repayment capacity (income), creditworthiness (CIBIL score), and collateral (for secured loans). Eligibility = function of all three. Even with high income, a low credit score reduces eligibility; even with good credit, low income caps the loan amount.
The FOIR Concept
FOIR (Fixed Obligation to Income Ratio) is the % of your income that goes to EMIs (all existing + new loan). Banks cap FOIR by loan type:
| Loan Type | Max FOIR | Why |
|---|---|---|
| Home Loan | 50-60% | Secured by property; higher FOIR accepted |
| Loan Against Property (LAP) | 55-60% | Secured but riskier than home loan |
| Car Loan | 50% | Secured by vehicle (depreciating asset) |
| Personal Loan | 40-50% | Unsecured; strict limits |
| Credit Card | 30-40% total spending limit | Highest risk; conservative |
CIBIL Score Impact on Eligibility
| CIBIL Score | Interest Rate | Eligibility |
|---|---|---|
| 800-900 (Excellent) | Lowest available (banks compete) | Full eligibility, best terms |
| 750-799 (Very Good) | Standard rate | Full eligibility |
| 700-749 (Good) | +0.25-0.5% above standard | ~90% of normal eligibility |
| 650-699 (Fair) | +1-2% above standard | Reduced eligibility, co-applicant may help |
| 550-649 (Poor) | +3-5%; only NBFCs | 30-50% of normal; collateral needed |
| <550 (Very Poor) | Limited to gold loan / LAP | Mostly rejected |
Income Eligibility Multipliers
Banks typically lend a multiple of your annual income:
| Loan Type | Typical Multiplier |
|---|---|
| Home Loan (salaried) | 60-72× monthly income (5-6× annual) |
| Home Loan (self-employed) | 40-50× monthly income (3-4× annual) |
| Personal Loan | 10-25× monthly net income |
| Car Loan | 30-60× monthly net income |
| Loan Against Property | 60-70% of property value (subject to FOIR) |
Tenure & Age Limits
| Loan Type | Max Tenure | Max Loan Maturity Age |
|---|---|---|
| Home Loan | 30 years (some 40) | 70-75 (salaried), 65-70 (self-employed) |
| Personal Loan | 5-7 years | 60 (salaried), 65 (self-employed) |
| Car Loan | 5-7 years | 60-65 |
| LAP | 15-20 years | 65-70 |
Tenure is capped by (a) loan type max, (b) age-at-maturity, whichever is lower. A 50-year-old can get max 20-year home loan if retirement age is 70.
Documents Required
Salaried
- 3 months’ salary slips + Form 16 (current + 2 years)
- Bank statements (6 months)
- PAN, Aadhaar, address proof
- For home loan: property documents, builder agreement, NOC
Self-Employed / Business
- 3 years ITR + computation of income
- P&L and Balance Sheet (last 3 years, audited)
- Bank statements (12 months, current + savings)
- GST returns (6-12 months)
- Business registration documents (Udyam, Shop Act, etc.)
How to Maximise Your Eligibility
- Add a co-applicant (working spouse) — combined income roughly doubles eligibility
- Close existing EMIs first — every ₹10K of cleared EMI = ~₹10L more home loan capacity (depending on tenure)
- Maintain CIBIL ≥ 750 — pay credit card bills on time, no missed EMIs, low credit utilisation (<30%)
- Choose longer tenure — 30 years vs 15 years can double your loan capacity (but increases total interest)
- Negotiate processing fee waiver — most banks waive 50% for salaried customers with strong profile
- Show all income sources — rental, freelance, dividend, interest — declared in ITR boosts eligibility
- Avoid recent loans/credit cards — multiple credit inquiries in 6 months hurt score and signal cash crunch
Frequently Asked Questions
What’s the difference between FOIR and DBR?
FOIR (Fixed Obligation to Income Ratio) is for retail loans — banks/HFCs use it. DBR (Debt Burden Ratio) is the same metric used by some NBFCs. Both calculate the share of income consumed by EMIs. Lower = better.
Can I get a home loan with low salary?
Yes — affordable housing schemes (PMAY) and joint loans help. Banks have minimum income criteria (typically ₹15K-25K/month for salaried), but combining spouse’s income, declaring all sources, and choosing a smaller property all increase chances.
Does my employer matter for loan eligibility?
Yes — banks classify employers into categories (Cat A: Govt, large MNCs, Fortune 500; Cat B: medium companies; Cat C: SMEs; Cat D: unlisted/unknown). Higher categories get better rates and easier approval.
How much processing fee do banks charge?
0.25-2% of loan amount (typically 0.5-1%). Often negotiable to 0.25% for good profiles. Many banks waive partially during festive offers or for women borrowers.
Can self-employed get the same loan as salaried?
Eligibility is usually 60-70% of salaried (banks see business income as more volatile). However, well-documented businesses (3+ years ITR, audited financials) with consistent income can match salaried rates.
Does pre-approved loan offer mean guaranteed approval?
No — ‘pre-approved’ is based on existing customer data and indicative. Final approval requires fresh documentation, valuation, and verification. Up to 5-10% of pre-approved loans are eventually rejected at final stage.
What is balance transfer (BT)?
Transferring existing loan from one lender to another offering lower rate. Charges: 0.5-1% processing fee + foreclosure charges (if any). Typically worth it if you can save 0.5% rate AND remaining tenure > 5 years.
How is loan eligibility different for NRIs?
NRIs need NRE/NRO income proof, employment letter from foreign employer, salary slips converted to INR. Loan tenure capped at 15-20 years, max loan often lower than residents.
Can I get loan with credit card debt?
Yes but credit card EMIs count towards FOIR, reducing eligibility. Better: clear credit card before applying. ₹50K/month CC commitment alone reduces home loan eligibility by ₹40-50L.
What’s loan-to-value (LTV) ratio?
Maximum loan as % of property value. RBI mandates: 90% LTV for ≤₹30L, 80% for ₹30-75L, 75% for >₹75L home loans. LAP typically 60-70% of property value.
Do home loans have minimum loan amount?
Yes — typically ₹3-5 lakh minimum. Some banks offer ₹1 lakh starting (for rural/affordable). Maximum is income-driven, can go to ₹10+ crore for HNIs at private banks.
Can I get loan with cash salary?
Difficult. Banks insist on banked salary credits (salary directly to account via NEFT/RTGS). Cash salary creates documentation issues. Workaround: provide IT returns + bank deposits showing pattern + employer NOC.