Eligible EMI = (net monthly income x FOIR) - existing EMIs. Net income means the amount credited to your bank, not your CTC. FOIR is the share of income a lender will let you commit to EMIs; most use 40% to 55%, with better profiles getting the higher figure. Then the eligible EMI is converted to a loan amount at the applicable rate and tenure.
| Monthly income | Existing EMIs | Eligible EMI (50% FOIR) | Loan at 14% / 5 years |
|---|---|---|---|
| Rs 40,000 | None | Rs 20,000 | Rs 8,59,540 |
| Rs 60,000 | None | Rs 30,000 | Rs 12,89,310 |
| Rs 60,000 | Rs 8,000 car loan | Rs 22,000 | Rs 9,45,494 |
| Rs 75,000 | None | Rs 37,500 | Rs 16,11,638 |
The drop from 12.89 lakh to 9.45 lakh is 3,43,816 of lost borrowing power from a single existing EMI. Run your own numbers in the Personal Loan EMI Calculator.
Net income over gross. If your CTC includes stock, bonus or reimbursements that hit your bank separately, lenders want to see those credits. Keep the account that receives them.
Employer category. Category A employers (large listed firms, MNCs, government, PSU banks) often get a higher FOIR and a lower rate than category B and C. If you work at a startup, a longer employment vintage offsets the category.
Credit score band. Above 750 you are priced in the best band; below 700 the lender either cuts the amount or raises the rate, which cuts the loan amount twice.
Tenure. Extending tenure lowers EMI and raises the loan amount, but increases total interest. A 7-year loan approves more than a 3-year loan on the same EMI - check the EMI Calculator for the interest trade-off before choosing the longest option offered.
Existing obligations, fully counted. Home loan, car loan, credit card minimum due, overdrafts and even a loan you have guaranteed for someone else can enter the FOIR calculation.
1. Close small-ticket loans first. Clearing a 8,000 EMI adds back more than 3 lakh of borrowing power - the highest-return financial move available before a loan application. 2. Lower credit card utilisation under 30% for the two statement cycles before applying. 3. Avoid new credit enquiries in the 90 days before you apply; each hard enquiry is visible to every lender. 4. Apply with a co-applicant if one is allowed - their income joins the FOIR pool. 5. Show all income streams
Apply to two lenders, not eight. Each application generates an enquiry, and a flurry of enquiries in one month reads as distress.
How much personal loan can I get on a 60,000 salary?
About 12.89 lakh at 14% for 5 years with no other EMIs, dropping to roughly 9.45 lakh if you already pay an 8,000 EMI.
What is FOIR?
The share of net monthly income a lender permits for EMIs - usually 40% to 55%. All existing EMIs plus the new one must fit inside it.
Should I close my credit cards to improve eligibility?
No. Closing your oldest card can lower your average credit age and raise utilisation on remaining cards, which tends to hurt.
Improve Your CIBIL Score · Prepay or Invest? · Personal Loan EMI