Factors Affecting Loan Eligibility
- Monthly Income: Most important factor (EMI should be 40-50% of income)
- Age: Typically 21-60 years
- Credit Score: Minimum 700 recommended
- Employment Type: Salaried or self-employed
- Existing Obligations: Other loans and liabilities
Simple Eligibility Formula
Maximum Loan Amount = (Monthly Income - Existing EMIs) × Loan Tenure in Months × 50%
Example
If your monthly income is ₹50,000 and you have no existing EMIs:
Maximum Loan = (50,000 - 0) × 60 × 50% = ₹15,00,000
Income Multiples
- Salaried: 10-15x monthly income
- Self-Employed: 5-10x annual income
- Business: 3-5x annual profit