Estimate maximum loan borrowing capacity based on monthly income and existing obligations.
Banks and financial institutions determine loan eligibility primarily using the FOIR (Fixed Obligation to Income Ratio), capping total monthly loan repayments at 50%–60% of net monthly income.
FOIR stands for Fixed Obligation to Income Ratio. Lenders cap your total monthly loan EMIs at around 50% of net income to ensure repayment safety.
You can increase loan eligibility by clearing existing loans, opting for a longer tenure, adding a co-applicant, or declaring secondary income streams.
A CIBIL score above 750 is generally considered good and may improve your chances of loan approval, but lenders also consider income, existing obligations, credit history and their own eligibility criteria.
Yes, adding a earning family member (spouse, parent) combines incomes, increasing the overall maximum eligible loan amount.
Yes, all active monthly loan EMIs and credit card debt repayments reduce your available monthly surplus for new loans.