🏦 Loan Eligibility Calculator

📌 What is a Loan Eligibility Calculator?

This tool helps you estimate how much loan you can get based on your income, expenses, interest rate, and tenure. It gives a quick idea of your borrowing capacity.

🔍 How to Use the Loan Eligibility Calculator

• Enter your monthly income (in-hand salary).
• Enter your monthly expenses (EMIs, credit card bills, etc.).
• Select expected interest rate and loan tenure.
• View your maximum loan eligibility instantly.

📈 Formula Used

The calculator assumes lenders allow 40–50% of your income for EMIs:

Eligible EMI = (Income - Obligations) × 50%
Loan Eligibility = [EMI × (1 + r)^n - 1] / [r × (1 + r)^n]
Where:
r = monthly interest rate
n = loan tenure in months

📌 Example

If your income is ₹80,000 and expenses are ₹10,000, you could be eligible for a ₹50–55 lakh loan at 9% for 20 years.

👥 Who Should Use This Tool?

• First-Time Home Buyers – Know your budget before house hunting.
• Loan Applicants – Check eligibility for personal, car, or education loans.
• Financial Planners – Help clients plan better.
• Self-employed Individuals – Estimate eligibility before approaching banks.

📌 FAQs

Q. Is this result guaranteed?

No. It’s an estimate. Lenders may also check your credit score and job stability.

Q. What are “Monthly Obligations”?

Any fixed monthly payments like EMIs or credit card dues.

Q. Can I use this for all loan types?

Yes. It works for home, personal, car, and education loans.