Personal Loan Eligibility Calculator

Personal loan eligibility is the maximum amount a lender is likely to lend you, based mainly on how much of your monthly income can safely go toward a loan EMI. Because a personal loan is unsecured — there is no asset backing it — your income, existing obligations and credit profile are the whole story. This calculator estimates the figure in two steps: it works out the largest EMI you can afford from your income and existing obligations, then converts that EMI into a loan amount at your interest rate and tenure. Everything updates live as you type.

The first step uses your FOIR (Fixed Obligation to Income Ratio) — the share of income a lender lets you commit to all EMIs combined:

Max affordable EMI = (income × FOIR%) − existing EMIs

That affordable EMI is then turned into a loan amount with the reverse-EMI formula — the present value of an ordinary annuity, which is the exact inverse of the standard EMI calculation:

Eligible loan = EMI × [(1 + i)ⁿ − 1] ÷ [i × (1 + i)ⁿ]

where i is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. When the rate is 0%, the eligible loan is simply the affordable EMI multiplied by the number of months.

A borrower earning ₹50,000 a month with a ₹10,000 existing EMI, at a 50% FOIR, can commit ₹15,000 a month to a new personal-loan EMI (₹50,000 × 50% − ₹10,000). At 10% over 2 years, that EMI supports the following loan:

Some lenders quote a quick shortcut — eligible loan ≈ 9–27× your net monthly salary, with the multiplier depending on your employer, income band and profile. It is handy as a sanity check, but it bakes in an opaque, applicant-specific factor and ignores your existing EMIs entirely. This calculator shows the multiplier band only as a reference and uses the transparent FOIR + reverse-EMI figure as the actual output. When you already carry EMIs, the FOIR method overrides the multiplier — a large running loan can pull your true eligibility well below the multiplier band.

FOIR is also a lens on affordability, not just a cap. The lower your total-EMI-to-income ratio, the stronger your application looks. The bands below are how lenders typically read FOIR for unsecured personal loans:

Because a longer tenure lowers the EMI needed per rupee borrowed, the same affordable EMI stretches to a larger loan as the tenure grows — at the cost of more total interest. Personal-loan tenures are short (most lenders cap them at 5–7 years), so the effect is smaller than for a home loan. The table shows the eligible loan for a fixed ₹25,000 affordable EMI across common tenures:

The most effective ways to raise the number this calculator shows are: increase your income, reduce existing EMIs by closing or consolidating other loans (this directly widens your FOIR headroom), choose a longer tenure, and secure a lower interest rate — often helped by a strong credit score (typically 750+). Each of these widens either the affordable EMI or the loan that EMI can buy.

The table below shows the approximate eligible loan at common income levels using standard FOIR bands, a 14% interest rate and a 4-year tenure. These figures are computed by the same engine the calculator uses — enter your actual numbers above for a precise estimate.

While every lender sets its own policy, the table below summarises the criteria that most Indian banks and NBFCs apply when assessing a personal loan application. These are the non-income factors that sit alongside the FOIR-based eligibility this calculator computes.

Once you know your eligibility estimate, you will need to produce documents to support the application. The list below covers what most lenders ask for — the exact set varies by lender, so confirm before applying.

A personal loan trades collateral for speed and flexibility. With no asset pledged, lenders price in more risk through a higher rate and a shorter tenure, and they lean heavily on your credit score. Here is how the two compare on the points that drive eligibility:

FOIR limits are lender policy, not a regulated constant. Real eligibility also depends on your credit history, age, employment stability, minimum-income rules and the lender's internal grids. Use this figure to plan and compare — then confirm the actual sanctioned amount with the lender.