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Personal Loan Eligibility

Personal Loan Eligibility Calculator

Calculate maximum personal loan eligibility using the FOIR (Foreseeable Obligations to Income Ratio) rule used by every Indian bank — typically 50-60% of monthly income minus existing EMIs. Supports salaried + self-employed + senior citizen profiles.

Income & Obligations

₹5 K₹1 Cr

Net take-home pay after taxes + PF + professional tax.

₹0₹10 L

Sum of all current loan EMIs and credit-card EMIs.

About You

years
21 yrs65 yrs
Profile

Loan Preferences

%
9%26%
months
12 mo60 mo

Personal Loan Eligibility

₹7,30,000

Personal loan eligibility: ₹7,30,000

(FOIR cap 55% · max EMI ₹25,000/mo)

FOIR Cap

55%

Max EMI

₹25,000

Eligibility

₹7.3 L

₹7,30,000

Recommended EMI

₹24,000

Criteria check

You meet basic eligibility criteria (age + income). Final sanction still depends on CIBIL score, employer category, and bank-specific underwriting.

How FOIR works

Banks limit your total monthly EMIs (existing + new) to a % of income (FOIR). For salaried earning ₹50K-1L, the cap is 55%. Higher-income earners can have 60-65% caps. This calc gives a directional eligibility — actual sanction depends on credit score, employer category, and bank-specific rules.

Improving eligibility

  • 1.Improve credit score to 700+. CIBIL 750+ unlocks the lowest rates (11-13%) and the highest FOIR slabs.
  • 2.Reduce existing EMIs. Closing or consolidating a ₹5,000/mo card EMI directly converts to roughly ₹1.5L of extra eligibility.
  • 3.Add a co-applicant. A working spouse or parent adds their income to the FOIR calculation, often lifting eligibility by 50-80%.
  • 4.Extend tenure to 60 months. The max PL tenure of 5 years lowers the EMI required for a given principal — letting you qualify for a 25-30% larger loan on the same income.

Next step

Calculate your EMI — use the Personal Loan EMI Calculator to see the exact monthly payment, total interest, and true APR on this loan amount.

Open Personal Loan EMI Calculator →

How It Works

The personal loan eligibility calculator answers a single question every salaried or self-employed borrower must settle before approaching a bank: how large an unsecured personal loan will the lender actually sanction me? The answer depends on three levers — your monthly income, your existing debt obligations, and the tenure-rate combination you're willing to accept. Get this number wrong and you waste time on applications that get rejected or sanctioned at a fraction of what you expected.

How banks compute personal loan eligibility

Every regulated lender — HDFC, ICICI, SBI, Axis, Kotak, Bajaj Finserv — uses a FOIR (Foreseeable Obligations to Income Ratio) framework. The bank caps your total monthly debt EMIs (existing loans + new personal loan) at a fixed percentage of your monthly income. The FOIR cap scales with income: a borrower earning ₹40K/month sees a 50% cap, while a ₹2L+/month earner can unlock 65%.

The FOIR slab

FOIR rises with income because absolute residual income (income minus EMIs) stays comfortable for higher earners. Self-employed borrowers see a 5-10% lower FOIR than salaried at the same income because banks discount irregular cash-flow patterns. Senior citizens (60+) face the tightest cap at 35-50% because the loan must be repaid within a shorter remaining earning window.

The reverse EMI formula

Standard EMI math goes from principal to monthly payment. Eligibility math goes the other way: given the maximum EMI you can carry, what principal does that map to at this rate and tenure?

P = EMI × [1 − (1 + r)−n] / r

Where P is the eligible principal, r is the monthly rate (annual ÷ 12 ÷ 100), and n is the tenure in months. Personal loan tenure is capped at 60 months (5 years) by every regulated lender — pushing beyond is rare.

Frequently Asked Questions

FOIR (Foreseeable Obligations to Income Ratio) is the maximum share of your monthly income that a bank will allow toward all your debt EMIs combined — existing loans, credit-card EMIs, and the new personal loan you're applying for.

For salaried borrowers earning between ₹50,000 and ₹1 Lakh per month, the typical FOIR cap is 55%. High-income earners above ₹2 Lakh per month can unlock FOIR caps up to 65%. Self-employed borrowers and senior citizens face tighter caps (40-55% and 35-50% respectively) because lenders take a more conservative view of irregular cash flow or shorter remaining earning years.

FOIR is calculated against net take-home income (after income tax + PF + professional tax), not gross salary.

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