Home Loan
8.5-9.5% p.a. | Up to 30 years
Car Loan
8.5-10% p.a. | Up to 7 years
Business Loan
10-14% p.a. | Up to 10 years
Personal Loan
10-16% p.a. | Up to 5 years
How Loan Eligibility Works
Banks calculate eligibility using FOIR (Fixed Obligation to Income Ratio). They consider your income, existing EMIs, loan type, tenure, and interest rates. Our calculator uses actual 2026 Indian market rates to give you accurate estimates.
Step 1 of 5
Calculate Your Loan Eligibility
Answer 5 simple questions to get your maximum eligible loan amount.
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Loan Comparison Guide
| Loan Type | Interest Rate | Max Tenure | Processing Fee | FOIR Limit | Best For |
|---|---|---|---|---|---|
| Home Loan | 8.5-9.5% | 30 years | 0.5% | 45% | Property purchase/construction |
| Car Loan | 8.5-10% | 7 years | 1.0% | 50% | Vehicle purchase |
| Business Loan | 10-14% | 10 years | 1.5% | 55% | Working capital/expansion |
| Personal Loan | 10-16% | 5 years | 2.0% | 55% | Any personal need |
| Education Loan | 8.5-12% | 15 years | 1.0% | 50% | Higher education |
| Gold Loan | 9-12% | 3 years | 1.0% | 60% | Against gold jewelry |
Frequently Asked Questions
What is FOIR and how does it affect loan eligibility?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that goes toward EMIs. Banks typically allow 40-50% FOIR for home loans, 50-60% for personal loans. Higher FOIR means higher eligible amount. Our calculator uses optimal FOIR for each loan type.
Why do different loans have different interest rates?
Interest rates vary by loan type based on risk and collateral. Home loans (secured) have lowest rates (8.5-9.5%), while personal loans (unsecured) have highest rates (10-16%). Car and business loans fall in between. Processing fees also vary (0.5%-2% depending on type).
What does "Processing Fee" mean and is it deducted from the loan?
Processing fee (0.5%-2% depending on loan type) is charged by banks for processing and verifying your application. It's typically deducted from the gross loan amount, so you receive the net amount after deduction. For example, ₹10 lakh home loan with 0.5% fee = ₹9.95 lakh disbursed.
Why should my EMI be less than 40% of my income?
Banks recommend EMI should not exceed 40-50% of monthly income (called FOIR) to ensure you have enough money for other living expenses. Higher EMI percentages indicate financial strain and reduce approval chances.
Can I include my spouse's income?
Yes, you can add co-applicant income. Most banks consider 100% of the primary applicant's income and 50-100% of co-applicant's income depending on loan type. This can significantly increase your eligible loan amount.
How accurate is this calculator?
This provides an indicative amount based on FOIR and market rates. Final approval depends on credit score (750+), employment stability, existing obligations, collateral valuation, and lender-specific policies. Always consult with banks for exact figures.
What documents are needed for loan application?
Typically: Identity proof (PAN, Aadhar), address proof, recent bank statements (6 months), income proof (salary slips/ITR), employment letter. For home/car loans, add property/vehicle documents. For business loans, add business registration and financial statements.
Does self-employment affect loan approval?
Yes. Self-employed applicants usually face slightly higher interest rates (0.5% more) and require 2+ years of ITR with consistent income. They may also have lower FOIR limits. This calculator adds 0.5% to the rate for self-employed applicants.
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