Find out maximum maximum loan borrowing capacity based on monthly income and 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.
Yes, a CIBIL score of 750 or higher qualifies you for maximum loan amounts and lower interest rates.
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.