Loan Eligibility Calculator
What is Loan Eligibility?
Loan eligibility is the maximum loan amount you can borrow from a bank or financial institution based on your income, existing debts, and loan tenure. It helps determine if you qualify for the loan amount you need.
How to Use a Loan Eligibility Calculator
To calculate your loan eligibility, enter your monthly income, any existing EMI payments, the loan interest rate, and the tenure of the loan. The calculator will then estimate the maximum loan amount you are eligible for based on these inputs.
Loan Eligibility Calculation Formula
The calculator uses the following formula to estimate your loan eligibility: Eligibility = [Income – Existing EMI] x Loan Tenure x Interest Factor Where: - Income is your monthly income. - Existing EMI refers to any current loans you're repaying. - Loan Tenure is the period of the loan in years. - Interest Factor adjusts for the interest rate applied to the loan.
Tips for Improving Loan Eligibility
- Clear Existing Debts: Reduce or eliminate existing EMIs to increase your eligibility.
- Increase Loan Tenure: A longer loan tenure may help you qualify for a higher loan amount
- Stable Income: Ensure a stable income to improve the chances of loan approval and eligibility.