Loan Eligibility Calculator

Loan eligibility is primarily determined by a bank or lender's assessment of your ability to repay the loan. A key factor is your **Debt-to-Income (DTI) ratio**, which compares your total monthly debt payments to your gross monthly income. Lenders typically prefer a DTI ratio below a certain threshold (e.g., 40-50%) to ensure you have enough income left to comfortably make your new EMI payments.

The calculation involves estimating your **maximum affordable EMI** first, which is a percentage of your monthly income after accounting for your existing monthly debts. From there, the calculator works backwards using the interest rate and loan tenure to determine the maximum principal amount you can borrow.