Loan Eligibility Calculator — How Much Loan Can I Get?

What is a Loan Eligibility — How Much Loan Can I Get??

Loan eligibility refers to the maximum loan amount a bank or financial institution will approve for a borrower based on their financial profile. The most important factor is monthly income — Pakistani banks and most international lenders use a standard rule that total monthly EMI obligations (existing plus new) must not exceed 50% of the applicant's net monthly take-home salary. This is called the Debt-to-Income (DTI) ratio or the Fixed Obligation to Income Ratio (FOIR). For example, if your net monthly salary is PKR 100,000, banks will allow a maximum total EMI of PKR 50,000. If you already pay PKR 15,000 in an existing car loan EMI, your maximum new EMI capacity is only PKR 35,000. The eligible loan amount is then calculated from this maximum EMI using the standard loan amortization formula, taking into account the interest rate and tenure. Longer tenure means lower monthly EMI, which means a higher eligible loan amount — but also more total interest paid.

How to Use This Calculator

Enter your monthly net take-home salary (after tax and deductions). Enter your existing monthly EMI payments — include all current loans (car, personal, credit card minimum payments). Enter the expected interest rate for the new loan (home loans: 15–22%, car loans: 18–25%, personal loans: 25–35% in Pakistan). Select your desired loan tenure. Click Calculate to see your maximum eligible loan amount, the maximum monthly EMI you can afford, and your current debt-to-income ratio.

💡 Pro Tips

• ✓Pay off existing debts before applying for a large loan — each existing EMI reduces your eligible amount significantly.
• ✓A longer tenure increases your eligible loan amount but means substantially more total interest paid.
• ✓Joint applications with a working spouse can potentially double eligible loan amount.
• ✓Self-employed applicants typically need 2 years of bank statements and tax returns.
• ✓Your credit history and score significantly affect actual approval — this calculator estimates eligibility only.

Who Uses This Calculator?

First-time home buyers checking how much home loan they qualify for before approaching a bank. Car buyers determining the maximum car loan they can get based on their salary. Personal loan applicants verifying eligibility before making a formal application. Anyone planning a major purchase on financing who wants to understand the maximum they can borrow. Financial planners advising clients on debt capacity and sustainable borrowing limits.

Frequently Asked Questions

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