Personal Loan Calculator

1. Enter your net monthly income: This is your take-home salary or net profit after tax, not your gross salary. Lenders use net income for FOIR calculation.
2. Enter existing EMI obligations: Include all current EMIs — home loan, car loan, credit card minimum dues, or any other active loans. Do not leave this blank.
3. Select your preferred loan tenure: Most personal loans in India run from 12 to 60 months. A longer tenure lowers your EMI but increases total interest paid.
4. Choose your employment type: Select Salaried, Self-Employed Professional, Business Owner, or Government Employee. Lender norms differ by category.
5. Click "Check Eligibility": The calculator applies standard FOIR norms (50–60% for personal loans) and returns your estimated eligible loan amount along with an indicative EMI range.

*Note: The result is an estimate. Final approval depends on your credit score, lender policy, employer profile, and document verification.*

A personal loan eligibility calculator is a free online tool that estimates how much personal loan you can borrow based on your monthly income, existing EMIs, credit score, employment type, and loan tenure. It applies the FOIR (Fixed Obligation to Income Ratio) method used by Indian lenders to give you an accurate, instant eligibility estimate without a hard credit inquiry.

Not sure how much loan you qualify for? Check your eligibility in 60 seconds based on your salary and EMIs.

Indian banks and NBFCs use two primary methods to calculate personal loan eligibility. Understanding both helps you predict your approval outcome before applying.

Method 1: FOIR (Fixed Obligation to Income Ratio)

FOIR measures what percentage of your net monthly income already goes toward fixed EMI payments. Most lenders allow a maximum FOIR of 50–60% for personal loans.

Formula: Maximum Eligible EMI = (Net Monthly Income × FOIR%) − Existing EMIs

Example:

• Net Monthly Income: ₹50,000
• FOIR allowed: 55% → ₹27,500
• Existing EMIs: ₹8,000
• Maximum new EMI allowed: ₹19,500
• At 12% p.a. for 5 years → Eligible loan amount ≈ ₹8.7 lakhs

Method 2: Income Multiplier Method

Some lenders, particularly for pre-approved or salary-account customers, apply a flat multiplier to your net monthly take-home.

Formula: Eligible Loan Amount = Net Monthly Salary × Multiplier (9x–18x)

The multiplier varies by employer category (Tier-1 companies get 18x; others may get 9x–12x).

Other Factors Factored Into Eligibility Calculations

• Credit Score: Below 650 usually means rejection; 750+ unlocks best offers
• Employment Type: Government > MNC > Private > Self-Employed in lender preference
• Age: 21–45 years preferred; max age at loan maturity is typically 60 years
• Existing Loans: Each active EMI reduces your available FOIR headroom
• City Category: Metro applicants often face higher minimum salary floors
• Lender Relationship: Salary account holders often get pre-approved offers at lower rates
• ITR/Bank Statements: 6–24 months of income consistency strengthens self-employed applications

Your personal loan eligibility depends on much more than your monthly salary. Banks and NBFCs evaluate your income, credit profile, repayment capacity, employment stability, existing debts, and financial behaviour before approving your application.

Understanding these factors can help you qualify for a higher loan amount, secure a lower interest rate, and reduce the chances of rejection.

• Monthly Salary or Net Take-Home Pay: Lenders calculate eligibility based on your monthly take-home income, not your CTC. Higher disposable income generally increases your eligible loan amount.
• Business Income (Self-Employed): Banks assess average net profit over the last 2–3 years using ITRs. Stable and growing profits indicate lower repayment risk.
• Credit Score (CIBIL, Experian or CRIF): A credit score of 750 or above significantly improves approval chances and often qualifies you for better interest rates. Lower scores indicate higher credit risk.
• Existing EMIs and FOIR: Lenders use FOIR to determine whether you can comfortably repay another loan. Higher existing obligations reduce eligibility.
• Age: Most lenders require applicants to be at least 21 years old and expect the loan to be fully repaid before retirement age (generally 60–65 years).
• Employer Profile: Many banks maintain approved employer lists. Employees of reputed companies, PSUs, government organisations, and large MNCs often receive faster approvals and better terms.
• Employment Stability: Consistent employment indicates reliable income and lower repayment risk. Most lenders prefer applicants with at least 6–12 months in their current organisation.
• Total Work Experience: Overall professional experience demonstrates long-term earning potential and career stability.
• Location or City of Residence: Income eligibility requirements may vary between metro and non-metro cities due to differences in living costs and lender policies.
• Relationship with the Lender: Existing customers often receive faster approvals, pre-approved offers, simplified documentation, and better interest rates.
• Bank Statement and Cash Flow: Lenders review recent bank statements to assess salary credits, spending patterns, and financial stability.
• Income Tax Return (ITR) History: ITRs help lenders verify declared income, especially for self-employed applicants and professionals.
• Documentation Accuracy: Accurate documentation speeds up verification and reduces approval delays.

Different banks calculate eligibility differently. Find lenders matching your profile.

Compare Personal Loan Offers →

*(Dev note: docx links "750 or above significantly improves" to business-standard.com. Hyperlink that phrase directly in the editor rather than pasting the URL as text, per copyright/citation practice.)*

Even eligible borrowers can face rejection if their financial profile raises concerns during the lender's assessment.

The most common reasons include:

• Low credit score or poor repayment history.
• High FOIR due to existing EMIs.
• Income below the lender's minimum eligibility requirement.
• Employer not listed in the lender's approved employer database.
• Employment instability, probation period, or frequent job changes.
• Multiple recent loan applications resulting in excessive hard enquiries.
• Loan amount requested is disproportionately high compared to income.
• Existing loan defaults, settlements, or write-offs.
• Outstanding credit card dues or repeated late payments.
• Missing, inaccurate, or inconsistent documents.
• Unstable bank statements or irregular income patterns.
• No previous credit history, making repayment behaviour difficult to assess.
• Self-employed income that fluctuates significantly from year to year.
• Numerous active loans indicating credit dependency.
• Negative legal records, cheque bounce history, or recovery proceedings.

Every rejected application may trigger a hard enquiry on your credit report, which can temporarily reduce your credit score. Checking your eligibility before applying helps minimise unnecessary enquiries.

Avoid rejection before applying. Check your approval chances first.

Check Approval Eligibility →

*(Dev note: docx links "Employment instability," to hdfc.bank.in, and "previous credit history" to indiatoday.in. Hyperlink these phrases directly rather than pasting URLs, per copyright/citation practice.)*

Salaried Employees

• Age: 21–60 years
• Minimum Net Monthly Income: ₹15,000–₹25,000 (varies by city and lender)
• Minimum Employment Tenure: 1–2 years total; 6–12 months with current employer
• Credit Score: 700+ preferred; 750+ for best rates
• Loan Amount: ₹50,000 – ₹40 lakhs
• Tenure: 12–60 months
• Documents: Salary slips, Form 16, bank statements, Aadhaar, PAN

Self-Employed Professionals (CA, Doctor, Architect)

• Age: 25–65 years
• Minimum Annual Income: ₹3–5 lakhs (ITR-certified)
• Business Vintage: 2–5 years in current profession
• Credit Score: 700+
• ITR: Last 2–3 years mandatory
• Loan Amount: ₹1 lakh – ₹30 lakhs

Business Owners / Self-Employed Non-Professionals

• Age: 25–65 years
• Business Vintage: Minimum 3 years
• Annual Net Profit: ₹5–10 lakhs minimum at major banks
• ITR: Last 3 years; audited financials if turnover > ₹1 crore
• Credit Score: 700+
• Loan Amount: ₹1 lakh – ₹25 lakhs

Government Employees (Central/State/PSU)

• Age: 21–60 years
• Minimum Net Monthly Salary: ₹15,000
• Employment Stability: Permanent/confirmed appointment preferred
• Credit Score: 650+ (more flexible)
• Loan Amount: Up to ₹25 lakhs
• Benefit: Lower interest rates, higher multiples, easier approval

Personal loan eligibility by salary varies by lender, but these estimates use a standard FOIR of 55% and a representative interest rate of 12% p.a. over 5 years. Assume no existing EMIs for these baseline figures.

• Monthly Net Salary ₹20,000 → Max EMI Capacity (55% FOIR) ₹11,000 → Estimated Eligible Loan (5 yrs @ 12%) ≈ ₹4.9 lakhs
• Monthly Net Salary ₹25,000 → Max EMI Capacity ₹13,750 → Estimated Eligible Loan ≈ ₹6.1 lakhs
• Monthly Net Salary ₹30,000 → Max EMI Capacity ₹16,500 → Estimated Eligible Loan ≈ ₹7.4 lakhs
• Monthly Net Salary ₹40,000 → Max EMI Capacity ₹22,000 → Estimated Eligible Loan ≈ ₹9.8 lakhs
• Monthly Net Salary ₹50,000 → Max EMI Capacity ₹27,500 → Estimated Eligible Loan ≈ ₹12.3 lakhs
• Monthly Net Salary ₹75,000 → Max EMI Capacity ₹41,250 → Estimated Eligible Loan ≈ ₹18.4 lakhs
• Monthly Net Salary ₹1,00,000 → Max EMI Capacity ₹55,000 → Estimated Eligible Loan ≈ ₹24.5 lakhs

*These are indicative estimates. Actual loan eligibility depends on your credit score, existing EMIs, lender policy, and employment type. Use our calculator above for a personalised figure.*

Your salary is only one factor. Get a personalised estimate.

Calculate Based on My Salary →

Your CIBIL or credit bureau score is the gatekeeper for personal loan approvals. Here is what each score range typically means for your application.

• 300–549 (Poor): Rejection from almost all banks and most NBFCs
• 550–599 (Very Low): Possible approval only at digital lenders with high interest (18–36% p.a.)
• 600–649 (Below Average): Some NBFCs may approve; banks likely to reject; higher interest rates
• 650–699 (Fair): NBFCs and some private banks may approve; limited loan amounts
• 700–749 (Good): Most lenders approve; standard interest rates; moderate loan amounts
• 750–799 (Very Good): All major banks approve; competitive interest rates; faster processing
• 800–900 (Excellent): Best rates available; pre-approved offers; maximum loan amounts; negotiating power

Key Insight: According to TransUnion CIBIL, 79% of loans are sanctioned to borrowers with CIBIL scores above 750. While borrowers with lower scores can still qualify, improving your credit score before applying may increase your approval chances and help you secure better loan terms. Remember that hard credit inquiries from loan applications may temporarily reduce your credit score.

Your credit score changes your loan amount and interest rate eligibility.

Primary: Check Loan Eligibility → Secondary: Improve My CIBIL Score

*(Dev note: docx links "According to TransUnion CIBIL" to cibil.com/blog/cibil-score-vs-report. Hyperlink that phrase directly rather than pasting the URL, per copyright/citation practice. Secondary CTA "Improve My CIBIL Score" should link to `/how-to-improve-cibil-score/`.)*

The amount you can borrow depends on three variables working together: your income, your existing obligations, and your credit profile. There is no universal answer, but the framework below shows realistic ranges.

*(Assumption: 750+ CIBIL, no existing EMIs, 5-year tenure, 12% p.a., FOIR 55%)*

• Monthly Salary ₹20,000 → Eligible Loan Amount Range ₹3–5 lakhs
• Monthly Salary ₹30,000 → Eligible Loan Amount Range ₹5–8 lakhs
• Monthly Salary ₹50,000 → Eligible Loan Amount Range ₹10–15 lakhs
• Monthly Salary ₹75,000 → Eligible Loan Amount Range ₹15–22 lakhs
• Monthly Salary ₹1,00,000 → Eligible Loan Amount Range ₹20–30 lakhs
• Monthly Salary ₹2,00,000+ → Eligible Loan Amount Range ₹30–40 lakhs (subject to lender caps)

The actual loan amount also depends on the lender's maximum cap. For example, ICICI Bank offers up to ₹40 lakhs while Kotak offers up to ₹15 lakhs. Always check the lender's ceiling alongside your personal eligibility.

These scenarios show how eligibility plays out for different borrower profiles. All examples use standard Indian lender norms for 2026.

Scenario 1: Young Salaried Employee Profile: Ramesh, 26, software engineer at a Tier-2 company, net salary ₹35,000/month, CIBIL 710, no existing EMIs, Bengaluru. Eligibility: FOIR 55% → max EMI ₹19,250. At 13% for 5 years → eligible for approx. ₹8–9 lakhs. Private banks likely approve; public sector banks may hesitate due to employer category.

Scenario 2: Government Employee Profile: Priya, 38, state government teacher, net salary ₹28,000/month, CIBIL 760, home loan EMI ₹5,000/month, small-town Maharashtra. Eligibility: FOIR 55% → ₹15,400 − ₹5,000 existing = ₹10,400 available EMI. At 11% for 5 years → eligible for approx. ₹4.7 lakhs. Government status improves approval confidence.

Scenario 3: Self-Employed Professional (Doctor) Profile: Dr. Kavita, 42, GP with private practice, net profit ₹90,000/month as per ITR, 8-year-old practice, CIBIL 780, no loans. Eligibility: FOIR 55% → ₹49,500 available EMI. At 12.5% for 5 years → eligible for approx. ₹21–22 lakhs. Professional status (doctor) makes this a straightforward approval.

Scenario 4: Business Owner Profile: Suresh, 45, wholesale trader, net profit ₹1.2 lakh/month per ITR (3 years consistent), CIBIL 720, existing loan EMI ₹20,000. Eligibility: FOIR 55% → ₹66,000 − ₹20,000 = ₹46,000 available. At 14% for 5 years → eligible for approx. ₹19–20 lakhs. Self-employed status increases interest rate by ~1–2% vs. salaried.

Scenario 5: Freelancer Profile: Anjali, 29, freelance UX designer, average monthly income ₹60,000 (bank credit), no ITR for 2024–25 yet, CIBIL 690, no EMIs. Challenge: No ITR filing reduces options. Most banks require 2 years of ITR for self-employed applicants. NBFCs and fintech lenders (Navi, KreditBee) may offer ₹3–5 lakhs at 18–24% based on bank statement income. Filing ITR would unlock significantly better terms within 1–2 assessment cycles.

Scenario 6: High-Income Borrower Profile: Vikram, 34, VP at an MNC, net salary ₹2.5 lakhs/month, CIBIL 820, existing home loan EMI ₹45,000, Delhi. Eligibility: FOIR 55% → ₹1,37,500 − ₹45,000 = ₹92,500 available EMI. At 10.5% for 5 years → eligible for approx. ₹42–43 lakhs (subject to lender cap of ₹40 lakhs at most lenders). Pre-approved offer likely.

For Salaried Employees

• Identity Proof: Aadhaar Card or Passport or Voter ID
• PAN Card (mandatory for all loan applications above ₹50,000)
• Address Proof: Aadhaar/Utility Bill/Rent Agreement
• Last 3 months' salary slips
• Last 6 months' bank statements (salary credit account)
• Form 16 or latest ITR (for amounts above ₹5 lakhs)
• Employment proof: Offer letter/Employee ID/Employer certificate
• Passport-size photograph

For Self-Employed / Business Owners

• Identity and address proof (same as above)
• PAN Card
• Last 2–3 years' ITR with computation
• Last 2–3 years' audited Profit & Loss Account and Balance Sheet
• Last 12 months' business bank statements
• GST Registration Certificate (if applicable)
• Business registration documents (Shop Act/Partnership Deed/MOA)
• Professional qualification proof (for doctors, CAs, architects)

For Government Employees

• Identity and address proof
• PAN Card
• Last 3 months' salary slips
• Government-issued employee ID
• Appointment/confirmation letter
• Last 6 months' salary account bank statements

*Requirements vary by lender and loan amount. Always confirm the exact document checklist with your chosen lender before applying.*

Have your documents ready? Find loans you qualify for.

View Eligible Loan Offers →

Before applying for a personal loan, follow these best practices to maximise your approval chances:

• Check your personal loan eligibility before submitting an application.
• Review your credit report and correct any errors or outdated information.
• Improve your credit score by paying EMIs and credit card bills on time.
• Keep your credit utilisation below 30%.
• Reduce existing EMIs and outstanding debts to improve your FOIR.
• Apply only for the loan amount you genuinely require.
• Choose a repayment tenure that keeps your EMI affordable.
• Avoid submitting multiple loan applications within a short period.
• Maintain stable employment and avoid applying during probation or immediately after switching jobs.
• Keep your bank statements, salary slips, PAN, Aadhaar, ITRs, and other supporting documents accurate and up to date.
• Apply with a lender whose eligibility criteria match your income, employer profile, and credit history.
• If you have an existing relationship with a bank, check whether you qualify for a pre-approved personal loan with simplified documentation.

These two tools are often confused. They answer fundamentally different questions.

• Primary Question Answered — Eligibility Calculator: How much can I borrow? | EMI Calculator: What will my monthly payment be?
• Inputs Required — Eligibility Calculator: Income, EMIs, score, tenure | EMI Calculator: Loan amount, interest rate, tenure
• Output — Eligibility Calculator: Maximum eligible loan amount | EMI Calculator: Monthly EMI amount
• Use Stage — Eligibility Calculator: Before applying | EMI Calculator: After deciding loan amount
• Dependency on Income — Eligibility Calculator: Core input | EMI Calculator: Not required
• FOIR Calculation — Eligibility Calculator: Yes | EMI Calculator: No
• Credit Score Role — Eligibility Calculator: Yes (affects eligibility) | EMI Calculator: No impact
• Practical Use — Eligibility Calculator: Plan your loan application | EMI Calculator: Plan your monthly budget

Use the eligibility calculator first, then use the EMI calculator to verify if the resulting EMI fits your budget.

Eligibility Calculator tells you the maximum loan amount you qualify for based on your income and existing obligations. It is an input-to-loan-amount tool.

EMI Eligibility is a specific component within lender underwriting that asks: "What is the maximum EMI this applicant can service?" It is calculated as: Net Income × FOIR% − Existing EMIs.

The eligibility calculator uses EMI eligibility as an intermediate step to reverse-engineer the maximum loan amount. In short:

• EMI Eligibility = A sub-calculation (used inside eligibility assessment)
• Eligibility Calculator = The complete tool that incorporates EMI eligibility to give you a final loan amount figure

Borrowers often carry inaccurate beliefs that lead to either unnecessary rejections or missed loan opportunities.

1. Myth: Higher salary always means higher loan.

Fact: An applicant earning ₹80,000 with four EMIs totalling ₹40,000 may get less than someone earning ₹50,000 with zero obligations.

1. Myth: You need a 750+ score to get any personal loan.

Fact: NBFCs and digital lenders approve applicants with scores of 600–700, though at higher interest rates.

1. Myth: Applying to more lenders increases your chances.

Fact: Each application triggers a hard inquiry. Multiple simultaneous applications drop your score and flag you as credit-hungry.

1. Myth: A personal loan will always hurt your credit score.

Fact: Taken responsibly and repaid on time, a personal loan improves credit mix and on-time payment history.

1. Myth: Self-employed individuals cannot get personal loans.

Fact: Self-employed professionals with ITR documentation regularly secure personal loans. The process is different, not impossible.

1. Myth: Checking your own credit score reduces it.

Fact: Self-enquiries (soft pulls) have zero impact on your CIBIL score.

1. Myth: Lenders only check CIBIL.

Fact: Lenders may check Experian, CRIF Highmark, or Equifax scores in addition to CIBIL, especially if CIBIL data is thin.

1. Myth: A settled loan is the same as a closed loan.

Fact: "Settled" (written off for less than the full amount) stays as a negative mark for up to 7 years. "Closed" is positive. Never settle a loan if you can pay in full.

1. Myth: Your employer does not matter if your salary is high.

Fact: Employer profile is an underwriting variable. A ₹1.3 lakh salary from an unlisted employer can be rejected.

1. Myth: Paying rent does not affect loan eligibility.

Fact: Rent is not an EMI and does not count in FOIR, but very high rent-to-income ratios can flag financial stress in statement analysis.

1. Myth: You cannot get a personal loan during a home loan repayment period.

Fact: You can, provided your FOIR headroom allows it after the home loan EMI.

1. Myth: Co-applicants are only needed when income is low.

Fact: A co-applicant with strong credit can also improve interest rates, not just the loan amount.

1. Myth: Loan rejections are permanent.

Fact: A rejection today does not prevent future approval. Addressing the reason (score, FOIR, documents) and reapplying after 3–6 months often succeeds.

1. Myth: Fixed deposits or savings guarantee loan approval.

Fact: Personal loans are unsecured. FD balances are not collateral here (that would be a loan against FD). They may support your case marginally but do not guarantee approval.

1. Myth: A high credit score guarantees the best interest rate.

Fact: Score is one input. Employer category, loan amount, relationship with the bank, and promotional campaigns also determine the final rate offered.

*(Dev note: docx links "application triggers a hard inquiry" (Myth 3) to livemint.com. Hyperlink that phrase directly rather than pasting the URL, per copyright/citation practice.)*

These recommendations come from standard financial planning best practice for personal loan management in India.

• Treat the eligibility calculator as the starting point, not the finish line. Your maximum eligible amount is not your recommended borrowing amount. A financial planner's rule: borrow no more than 10 times your monthly EMI budget.
• Build an emergency fund before taking a personal loan for discretionary spending. A personal loan should solve a problem, not create another one. Ensure 3 months of EMIs are available in savings before disbursement.
• Always compare the Annual Percentage Rate (APR), not just the interest rate. Processing fees of 1–3% plus GST significantly affect the true cost of a short-tenure loan. A 12% loan with 3% processing fees on a 1-year tenure costs closer to 18% effective.
• Maintain FOIR below 40% post-loan. Most planners recommend keeping total EMI commitments below 40% of net income, even when lenders allow 55–60%. The buffer protects you from income disruption.
• Use personal loans to consolidate higher-cost debt, not to fund depreciating assets. Replacing a 36% credit card balance with a 13% personal loan is financially rational. Funding a vacation with a 24% personal loan is not.
• Recheck your CIBIL score every 6 months. Monitoring lets you catch errors early and track progress. Both TransUnion CIBIL and bureau partners offer one free check annually.
• Avoid top-up loans unless the rate is competitive. Top-up loans on existing personal loans often carry higher rates than a fresh application elsewhere.

Already following these tips? Check your loan eligibility instantly!