Enter your monthly income, existing EMIs, interest rate and tenure to find the maximum loan banks are likely to approve — based on the FOIR and debt-burden limits lenders actually use. Adjust the ratio to see conservative versus aggressive borrowing. Calculated instantly in your browser.
How to use the loan eligibility calculator
- Enter your net monthly income — take-home pay, not CTC. Banks assess what actually hits your account.
- Enter your existing monthly EMIs: car loan, personal loan, BNPL instalments, credit-card minimums — everything fixed.
- Set the maximum EMI burden. Banks in Pakistan and India typically allow 40–50% of net income; 50 is pre-filled as the common ceiling.
- Enter the interest rate and tenure for the loan you want, and pick your currency symbol.
- Read your maximum affordable EMI and the largest loan it supports at that rate and tenure.
How do banks decide how much you can borrow?
Lenders do not ask "what do you want?" — they ask "what can you service?" The key metric is the FOIR (fixed obligation to income ratio), called the debt-burden ratio under State Bank of Pakistan rules: total monthly obligations ÷ net monthly income. Most banks cap it at 40–50%. So with Rs 150,000 net income and no existing EMIs at a 50% cap, your ceiling is Rs 75,000/month in EMIs — and the calculator converts that into a loan amount using the annuity formula: loan = EMI × ((1+r)n − 1) ÷ (r(1+r)n). At 20% over 5 years, Rs 75,000/month supports roughly Rs 2.83 million. Lengthen to 10 years and the same EMI supports about Rs 3.9 million — which is exactly why banks love offering longer tenures.
How can you increase your loan eligibility?
Four levers work. Clear existing EMIs first — every rupee of old EMI directly reduces your new ceiling, and short personal loans are the usual culprit. Extend the tenure — more years mean a bigger loan for the same EMI, at the cost of much more total interest. Add a co-applicant — a working spouse's income counts toward the household FOIR at most banks. Show more income honestly — rental income, documented freelance earnings and bonuses (usually averaged or haircut by the bank) all help. What does not work: hiding existing loans. Banks pull your credit report (eCIB in Pakistan, CIBIL in India) and will find them.
Pakistan vs India: what is different?
In Pakistan, the State Bank's consumer-financing regulations set a debt-burden ratio cap of 50% of net disposable income for most consumer loans, and banks verify income strictly — salaried borrowers need salary slips and bank statements, the self-employed face deeper scrutiny. Auto and personal loans dominate; mortgage penetration is low and rates are high. In India, the FOIR norm is 40–50% depending on the bank and loan type, home loans stretch to 30 years at 9–11%, and a strong CIBIL score (750+) can unlock both higher eligibility and lower rates. In both countries, the calculator's estimate is the starting point — the bank's credit policy and your credit history write the ending.
When is this calculator most useful?
Home buyers use it before house-hunting to set a realistic budget instead of falling for a property they cannot finance. Car buyers check whether the dealer's "approved" loan matches their actual servicing capacity. Anyone juggling multiple EMIs finds their true ceiling before applying — a rejected application still leaves a hard inquiry on your credit report. And borrowers comparing banks test how a 1% rate difference changes the eligible amount.
What are the limitations?
Eligibility is not approval. The calculator models the income-ratio rule only — it cannot see your credit score, employment stability, existing defaults, the property's valuation (banks lend 70–90% of value, never more), or informal income the bank will not count. It assumes a fixed rate for the whole tenure. Treat the result as your realistic maximum, then borrow comfortably below it: an EMI at 50% of income leaves no margin for rate rises, emergencies or job changes.
Frequently asked questions
What is FOIR?
FOIR — fixed obligation to income ratio — is the share of your net monthly income already committed to fixed payments: EMIs, credit-card minimums and similar obligations. Banks divide your total obligations by your net income and require the result to stay under their cap (usually 40–50%) before approving new credit. Pakistan's State Bank frames the same idea as the debt-burden ratio.
What FOIR do banks actually use?
Most banks in Pakistan and India work with 40–50% for salaried borrowers, sometimes stretching to 55–60% for high-income applicants with strong credit histories. Self-employed borrowers usually face stricter caps around 40%. The calculator defaults to 50% — lower it to 40% to see the conservative figure a cautious bank would offer.
Do credit cards affect loan eligibility?
Yes. Banks count your credit-card minimum dues (or a percentage of the limit) as a fixed obligation in the FOIR, and heavy utilisation hurts your credit score too. Clearing card balances before applying is one of the fastest ways to lift eligibility — it helps both the ratio and the score.
Can I include my spouse's income?
Yes, with a co-applicant. Most banks combine both incomes when a spouse (or parent) joins the application, which can substantially raise the eligible amount — and both applicants' credit histories are checked. Note that both become fully liable for the debt.
Why was my loan rejected if I am eligible?
The income ratio is only one filter. Common rejection reasons: a low or thin credit score, recent late payments, frequent job changes, unverifiable income, the property valuing below the asking price, or the bank's internal policy on your employer category. Ask the bank for the specific reason — they will usually tell you.
Is my data uploaded or stored anywhere?
No. This calculator runs entirely in your browser — your income and EMI figures never leave your device, are never sent to a server, and are never stored. Closing the tab removes all trace.
Updated October 2026 · Built and tested by Sharjeel Tahir · How our tools are tested