Loan eligibility calculator
Work out how much you could borrow in Nepal from your monthly income, existing repayments, FOIR, interest rate and tenure — and the largest EMI you can comfortably afford.
It applies the Fixed-Obligation-to-Income Ratio that banks use to cap repayments, then inverts the standard reducing-balance EMI formula to find the eligible principal. A planning-level tool, computed entirely in your browser.
Your finances
Your take-home pay after tax and statutory deductions.
Current EMIs, card minimums and other fixed repayments.
Fixed-Obligation-to-Income Ratio. Lenders in Nepal commonly cap total EMIs at 40–60% of income.
Indicative lending rate on a reducing-balance basis.
Repayment period in years. Longer tenures raise eligibility but cost more interest.
Eligible loan amount
Rs 29,57,802
The principal a Rs 30,000/month EMI can service over 180 months.
Max affordable EMI
Rs 30,000
Max EMI / month
Rs 30,000
EMI ceiling (FOIR)
Rs 40,000
Total interest
Rs 24,42,198
Total repayable
Rs 54,00,000
| EMI ceiling | Rs 80,000 × 50% FOIR = Rs 40,000 |
| Max affordable EMI | Rs 40,000 − Rs 10,000 obligations = Rs 30,000 |
| Eligible principal | Rs 30,000/month at 9% over 180 months = Rs 29,57,802 |
| Total repayable | Rs 30,000 × 180 = Rs 54,00,000 |
| Total interest | Rs 54,00,000 − Rs 29,57,802 = Rs 24,42,198 |
An indicative estimate. Actual eligibility depends on each lender's FOIR policy, the loan-to-value ratio on any collateral, your credit history, income stability and the prevailing interest rate — which banks revise periodically. Confirm the current rate and criteria with your bank or finance company.
From your income to a loan amount
Eligibility starts with how much of your income a lender lets you spend on repayments, then converts the affordable instalment into the largest principal it can service.
EMI ceiling
Multiply your monthly income by the FOIR percentage. This is the most a lender lets all your EMIs add up to.
Affordable EMI
Subtract your existing monthly obligations from the ceiling. What remains is the EMI available for a new loan.
Eligible principal
Invert the reducing-balance EMI formula at your rate and tenure to find the loan amount that EMI can repay.
Loan eligibility, answered
How is loan eligibility calculated?+
First the lender works out how much of your income can go to repayments — the EMI ceiling is your monthly income multiplied by the FOIR percentage. Your existing EMIs are subtracted from that ceiling to get the affordable EMI for a new loan. The eligible principal is then the loan amount whose EMI equals that figure: maxLoan = EMI × ((1+r)ⁿ − 1) / (r × (1+r)ⁿ), where r is the monthly interest rate and n the number of months.
What is FOIR and what value do Nepali banks use?+
FOIR is the Fixed-Obligation-to-Income Ratio — the share of your income a lender will allow for all loan EMIs combined. It protects you from over-borrowing. Banks and finance companies in Nepal commonly cap FOIR somewhere between 40% and 60% depending on income level and product; higher earners are sometimes allowed a higher ratio. The default here is 50%.
Why do my existing EMIs reduce how much I can borrow?+
Eligibility is based on the income left over for repayments. If your FOIR ceiling is Rs 40,000 a month and you already pay Rs 10,000 on other loans, only Rs 30,000 is available for a new EMI — so the eligible principal is calculated on that Rs 30,000, not the full ceiling.
Does a longer tenure increase my eligibility?+
Yes. A longer tenure spreads the same affordable EMI over more months, so it can service a larger principal and raises the eligible amount. The trade-off is more total interest over the life of the loan, which this calculator also shows.
Is this the exact amount my bank will approve?+
No. This is an indicative estimate based on FOIR and a reducing-balance EMI. Actual approval also depends on the loan-to-value ratio on any collateral, your credit history and credit score, the stability and source of your income, the lender's internal policy and the current interest rate. Always confirm with the bank or finance company.
What interest rate should I enter?+
Use the indicative annual rate for the product you want — home, auto or personal loans differ, and rates move with the base rate. Nepali bank lending rates have commonly ranged from roughly 8% to 15% in recent years. Enter the rate your lender quotes; this tool never assumes a live or current rate.
Sources & data note
Based on the Fixed-Obligation-to-Income Ratio (FOIR) approach and the standard reducing-balance EMI relation maxLoan = EMI × ((1+r)ⁿ − 1) / (r × (1+r)ⁿ). FOIR caps (commonly 40–60%) and interest rates vary by lender, product and Nepal Rastra Bank's prevailing base rate. This is an indicative planning estimate, not a credit decision — verify the current rate and eligibility criteria with your bank or finance company.