A loan eligibility calculator is a financial tool that helps users estimate the maximum loan amount they are eligible for, based on their financial profile. The calculator assesses factors like monthly income, current EMI obligations, and other personal financial details to determine eligibility.
Below is a detailed description of its key features and functionality, including inputs for monthly income and current EMI:
The calculator takes the user's monthly gross income as a key input, which forms the basis for calculating how much loan they can afford to repay.It may differentiate between salaried and self-employed individuals, allowing for specific income details to be factored in.
Users are asked to input any existing EMIs (Equated Monthly Installments) they are currently paying for other loans (such as personal loans, car loans, or home loans). This helps the calculator assess the user’s Debt-to-Income Ratio (DTI), which indicates how much of the user's income is already committed to repaying debt.
Based on the inputs, the calculator computes the maximum loan amount the user can qualify for, considering both their monthly income and existing liabilities (EMIs). It provides a clear picture of how much additional debt the user can take on, helping them plan for loans within their capacity.
