Personal Loan Eligibility Calculator

Personal Loan Eligibility Calculator

This is one of the most frequently asked query from those seeking finance for purchase of their dream house, personal vehicle or for funding any other financial needs such as marriage in the family, education of child, medical emergencies, renovation and furnishing of house, etc.

The eligible loan amount is dependent on host of other factors such as your occupation (whether salaried / self-employed), your monthly expenses, number of dependents, the interest rate charged by the bank, tenure of the loan, etc.

Generally, lenders consider certain percentage of your net monthly income as available for payment of all Emi’s. Though there is no fixed percentage defined it varies from one financial institute to another but normally it is considered as 40% – 45% of net monthly income as a comfortable ratio.

Based on your income this calculator will give you a rough estimate of how much a lender will be able to finance you.

Some of the common terms used on this calculator are:-

This is the desired loan amount that you have in mind for your Home Loan and Unsecured Personal Loan or any other loan. Please note that banks normally finance up to 80% (90% for loan amount below Rs. 20 lakhs) of the agreement value of the property. This loan amount does not include stamp duty and registration charges, which has to borne by you.
This is your net take home income after all deductions such as tax, provident fund, etc.
As mentioned earlier, lenders normally consider 40% – 45% of your net monthly income as available to service all loan repayments your existing loans will also have an impact on your loan eligibility. Hence lender will calculate the eligibility based on the existing outstanding amount and the EMI being paid now.
It is the length of time you choose for repayment of your loan. The maximum tenure for Home Loan is 30 years while for Personal Loan is 4 – 5 years.

The maximum tenure is also restricted by your age at the end of the tenure so as to ensure that your loan repayment ends on or before the retirement age, which is usually 60 years for salaried and 65 years for self-employed individuals.

Interest rate will depend on various factors such as your employment status, credit history, interest type such as fixed or floating rate, etc.

Interest rate have strong bearing on your loan eligibility. High interest rate results in higher Emi thereby reducing the loan amount eligibility and vice versa.

By entering details about your income, monthly liabilities (if any), tenure, approx. interest rate you can estimate the loan amount that works with your budget.

Note: All calculators and comparators are made based on certain assumptions, which may not be true in your case. You should consult your personal financial advisor before taking any decision. Apnapaisa disclaims any responsibility for any decision taken based on these calculators and comparators.