1. What is Loan Eligibility?

Loan eligibility refers to the maximum amount a bank is willing to lend you based on your repayment capacity, income, credit history, and other factors. Indian Bank uses this calculation to determine how much you can borrow while maintaining comfortable repayments.

2. How Does the Calculator Work?

The calculator uses the present value of annuity formula:

Where:

• \( P \) — Loan amount (principal)
• \( PMT \) — Affordable monthly payment
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)

Explanation: The formula calculates the maximum loan amount that can be repaid with your specified monthly payment over the loan term at the given interest rate.

3. Importance of Loan Eligibility

Details: Knowing your eligibility helps in financial planning, ensures you apply for realistic loan amounts, and improves chances of approval. Indian Bank typically requires minimum income and credit score thresholds.

4. Using the Calculator

Tips: Enter your comfortable EMI amount, current interest rates, desired loan term, monthly income, and credit score. The calculator will show the maximum amount you're likely eligible for.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum income required?
A: Indian Bank typically requires minimum ₹15,000 monthly income for personal loans, but this varies by loan type and location.

Q2: What credit score is needed?
A: A score of 750+ is ideal, but loans may be approved for scores as low as 650 with higher interest rates.

Q3: How is EMI calculated?
A: EMI = [P × r × (1+r)^n] ÷ [(1+r)^n-1]. Our calculator works backward from EMI to find maximum P.

Q4: What factors affect eligibility?
A: Income, existing debts, credit history, employment stability, and loan tenure all impact eligibility.

Q5: Does this guarantee approval?
A: No, this is an estimate. Final approval depends on bank's assessment of your complete application.