How is loan eligibility calculated?▼
Banks typically allow EMI up to 50-60% of your monthly income. We calculate your maximum EMI (50% of salary), subtract existing EMIs, and use the remaining amount to calculate the maximum loan you can afford based on interest rate and tenure.
What factors affect loan eligibility?▼
Key factors include monthly income, existing loan obligations (EMIs), credit score, employment stability, age, and the loan tenure. Higher income and lower existing debts increase eligibility. Good credit score helps get better rates.
What is the typical EMI to income ratio?▼
Most Indian banks follow the 50% rule - your total EMIs (including the new loan) should not exceed 50% of your monthly income. Some banks may allow up to 60% for borrowers with excellent credit scores.
Can I increase my loan eligibility?▼
Yes, you can increase eligibility by increasing tenure (up to bank limits), adding a co-applicant with income, improving credit score, reducing existing debts, or choosing a lender with more flexible criteria.