Personal Loan Eligibility Calculator
Use this Personal Loan Eligibility Calculator to calculate your potential personal loan eligibility based on your monthly income, current liabilities, CIBIL, and Work Experience.
Calculator Inputs Explained
Monthly Income (INR): Your net monthly income. The minimum income requirement is generally ₹50,000.
Credit Score: A score reflecting your creditworthiness, ranging from 300-900. Most banks require a score of at least 700.
Age: The age at which you’re applying for the loan. Personal loans are typically granted to individuals aged 23 to 65 years.
Work Experience (Years): The length of time you've been employed. A minimum of 2 years is commonly required.
Existing EMIs (Monthly): Sum of any current monthly EMI obligations that could impact your loan eligibility.
Desired Loan Amount: The loan amount you wish to apply for.
Loan Tenure (Years): The number of years over which you plan to repay the loan.
Interest Rate (% P.A.): The annual interest rate applied to the loan. This can vary based on the lender and credit profile.
How Personal Loan Eligibility is calculated in this calculator
This calculator uses an affordability analysis based on a simple formula to determine your eligibility. Here’s how it works:
Debt-to-Income Ratio (DTI): Lenders use the DTI ratio, which typically allows a maximum of 50% of your monthly income for loan EMIs.
Monthly Interest Rate Calculation: The annual interest rate you input is converted to a monthly rate.
Maximum Loan Amount: Using your desired EMI, the calculator finds the maximum loan amount you could get over the specified tenure.
Max Loan Amount =
(Max EMI × ((1 + Monthly Interest Rate)^Number of Months − 1)) /
(Monthly Interest Rate × (1 + Monthly Interest Rate)^Number of Months)
Approval Prediction: If the desired loan amount is within the calculated eligibility, the chances of approval are high.
Example Calculation
Let’s assume you have a monthly income of ₹60,000, a credit score of 750, and existing monthly EMIs of ₹5,000. You want a loan of ₹10 lakh over 5 years at an interest rate of 10%.
Max EMI Calculation: 60,000 x 0.50 - 5,000 = ₹25,000
Monthly Interest Rate: 10% annual rate translates to 0.0083 monthly
Loan Eligibility: With the calculated max EMI, tenure, and rate, the max eligible loan amount would be approximately ₹11,25,000.