Question 1

How is my maximum eligible loan amount calculated?

Accepted Answer

We use a 40% debt-to-income (DTI) ratio cap, a common lender threshold: your maximum monthly payment on all debt (existing + new loan) can't exceed 40% of your monthly income. We subtract your existing debt payments from that 40% ceiling to get your max eligible EMI, then work out the largest loan that EMI can support over your chosen tenure and interest rate.

Question 2

What is debt-to-income ratio (DTI)?

Accepted Answer

DTI is your total monthly debt payments divided by your monthly income. Lenders use it to judge how much more debt you can safely take on — most cap total DTI (including the new loan) at around 40%.

Question 3

Why does the tenure affect how much I'm eligible for?

Accepted Answer

A longer tenure spreads the same monthly payment over more months, which lets you borrow more principal for the same EMI — at the cost of paying more total interest over time.

Question 4

What if I'm shown as not eligible?

Accepted Answer

That means your existing monthly debt payments already exceed the 40% DTI cap on their own, before adding any new loan. Reducing existing debt or increasing income are the two levers that change this.

Question 5

Does this check my actual credit score?

Accepted Answer

No — this is a pure affordability estimate based on income and existing debt. Actual lender approval also depends on your credit score, employment history, and their specific underwriting policy.

Question 6

Is 40% DTI a hard rule?

Accepted Answer

It's a common ceiling, not universal — some lenders allow higher DTI for strong credit profiles, others cap lower. Treat this as a conservative, responsible estimate rather than a guarantee.

Question 7

Can I save or share my results?

Accepted Answer

Yes — use Share to copy a link that reproduces your exact inputs, or log in to save your calculation and revisit it later from your history.

Loan Eligibility Calculator

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