Work out loan eligibility instantly with clear inputs, formula shown and shareable results.
Lenders cap the EMI at a fixed share of net income — the fixed obligation to income ratio. Working the annuity formula backwards from that affordable EMI gives the loan size the income can support at the quoted rate and tenure.
Eligibility
Loan = EMI_max × (1 - (1+r)^-n)/r, EMI_max = income × FOIR
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Yes. Current EMIs are deducted from the allowed share first, so only the remainder supports new borrowing.
The same EMI amortises a larger balance over more months, though total interest rises sharply.