Key takeaway
Lenders mainly look at your income, existing debt, credit score, age, employment stability and – for secured loans – the value of the collateral.
What decides loan eligibility?
Lenders mainly look at your income, existing debt, credit score, age, employment stability and – for secured loans – the value of the collateral.
What is FOIR?
Fixed Obligation to Income Ratio (FOIR) is the share of your monthly income that goes to EMIs. Many lenders prefer total EMIs, including the new loan, to stay within about 50–60% of net monthly income.
How can I improve my loan eligibility?
- Keep your credit score above 750
- Close or reduce small outstanding loans
- Add an earning co-applicant
- Choose a longer tenure to lower the EMI
- Declare all regular income, such as rent or bonuses
Frequently asked questions
Yes. Adding an earning co-applicant combines both incomes, which usually increases the loan amount you can get.
Sources & editorial policy
Content is researched from official sources such as the Reserve Bank of India (RBI), credit bureaus and lender websites, and reviewed periodically. Rates and charges change often – always confirm the latest terms with the lender.