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Loan Eligibility / Affordability Calculator
Estimate your loan eligibility and check if a desired loan amount is affordable based on your income and existing debts.
Typical range: 36-50%. Lower is better.
Loan Eligibility / Affordability Calculator – Know How Much You Can Borrow
1. Introduction
The Loan Eligibility Calculator (also known as a Loan Affordability Calculator) is a smart online tool that helps you estimate how much loan you can qualify for based on your income, expenses, and loan terms. Whether you are planning for a home, car, or personal loan, this tool is ideal for anyone who wants to borrow responsibly and avoid financial stress.
2. How the Tool Works A Step-by-Step Guide
To use the Loan Eligibility Calculator:
- Step 1: Enter Your Gross Monthly Income (INR): Input your total monthly earnings before any deductions.
- Step 2: Input Existing Monthly Debt/EMIs (INR): Add up any current monthly loan payments you are making (e.g., credit card EMIs, existing personal loans).
- Step 3: Enter Desired Loan Amount (INR): The total amount of the new loan you are considering.
- Step 4: Specify Loan Tenure (Years): The number of years over which you plan to repay the loan.
- Step 5: Input Annual Interest Rate (%): The expected annual interest rate on the new loan.
- Step 6: Set Max Debt-to-Income Ratio (%): This is a crucial factor. It represents the percentage of your gross monthly income that goes towards debt payments (including existing and new loans). Banks typically look for a DTI ratio below 40-50%.
- Step 7: Click "Check Eligibility and Affordability": The calculator will process your inputs and provide an instant assessment.
The tool will instantly show how much you can safely borrow based on your repayment capacity and whether your desired loan amount is affordable.
✅ 3. Benefits of Using the Loan Eligibility Calculator
This Free tool helps you make informed decisions before taking a loan:
- ✅ Instant estimate of your loan affordability
- ✅ Helps avoid over-borrowing or EMI burden
- ✅ Suitable for all types of loans — home, personal, education, etc.
- ✅ 100% free and mobile-friendly
- ✅ No login or signup required
- ✅ Safe to use — your data is never stored
4. Who Should Use This Calculator?
This calculator is useful for:
- Home loan applicants checking their borrowing power
- Salaried individuals comparing loan options
- Students and parents planning education loans
- Families preparing for major financial commitments
- Business owners calculating eligibility for business loans
❓ 6. Frequently Asked Questions (FAQs)
Q1: What is a Loan Eligibility Calculator?
A Loan Eligibility Calculator is an online tool that estimates how much loan you can get based on your income, expenses, interest rate, and loan tenure.
Q2: What types of loans can I check with this calculator?
This tool works for home loans, personal loans, car loans, education loans, and business loans.
Q3: Does using the calculator affect my credit score?
No. It is only for estimation and does not affect your credit profile in any way.
Q4: Can I use this tool without entering personal details?
Yes. This calculator works instantly without saving or requesting personal information.
