Funding Eligibility Review
Funding eligibility review — three caps, one number
Eligibility is the lower of DSCR-based, FOIR-based, and LTV-based caps. We compute all three before you apply — so you know exactly how much you can borrow.
The three eligibility caps
DSCR-based cap
DSCR = EBITDA ÷ annual debt service. Most banks require 1.5x+; some NBFCs accept 1.25x. Eligibility = (EBITDA ÷ required DSCR) ÷ annual EMI per ₹1 L loan.
FOIR-based cap
FOIR = (existing EMIs + proposed EMI) ÷ net income. Most banks cap 50–60%; NBFCs up to 70%. Eligibility = ((net income × FOIR cap) − existing EMIs) ÷ EMI per ₹1 L loan.
LTV-based cap (secured)
LTV = loan ÷ property value. Residential LAP: 60–70% LTV. Commercial: 50–60%. Eligibility = property value × LTV cap.
The lowest cap wins
If DSCR says ₹40 L, FOIR says ₹50 L, and LTV says ₹30 L (for secured) — your eligibility is ₹30 L. The lender offers the lowest of the three.
Worked example
Self-employed, ₹2 L net monthly income, ₹50 L property
- DSCR cap: (₹18 L ÷ 1.5) = ₹12 L available for debt service. At 12% rate, 5-year loan: ₹12 L ÷ ₹0.022 EMI per ₹1 = ₹54 L eligible
- FOIR cap: (₹2 L × 60%) − ₹60,000 = ₹60,000/month available. At 12%, 5-yr: ₹60,000 ÷ ₹0.022 = ₹27 L eligible
- LTV cap (secured LAP): ₹50 L × 65% = ₹32.5 L eligible
- Bank will offer the lowest of {₹54 L, ₹27 L, ₹32.5 L} = ₹27 L (FOIR-constrained)
- To lift: prepay existing loans (frees FOIR), add co-applicant (raises FOIR numerator), or pledge more property (raises LTV)
Pre-application review
What a funding eligibility review gives you
- Maximum ticket size you can borrow (under each lender's policy)
- Best-fit lender identification (1–2 options, not 5)
- Specific eligibility-lifting levers (prepay, co-applicant, tenure, collateral)
- Complete documentation pack prepared for submission
- No hard enquiry, no CIBIL pull, no obligation
- 48-hour turnaround from receiving your CIBIL + ITR + banking + GST
FAQ
Common questions
Why is the loan amount I'm eligible for lower than my EMI affordability suggests?+
Because lenders apply the lower of three caps: DSCR-based (cash flow), FOIR-based (affordability), and LTV-based (collateral value, for secured loans). Even if your FOIR says you can afford ₹50,000 EMI, your DSCR may cap you at ₹25,000. The lowest cap wins. We compute all three before you apply.
Can I increase my eligibility before applying?+
Yes, by lifting any of the three caps. To lift DSCR: declare higher profit, prepay existing loans, take longer tenure. To lift FOIR: prepay existing loans, add co-applicant, take longer tenure. To lift LTV: pledge additional collateral, or improve property valuation. The fastest fix is usually adding a co-applicant with separate income.
Will my eligibility be the same across all lenders?+
No — each lender has different DSCR, FOIR, and LTV caps. PSU banks typically cap FOIR at 50%; NBFCs go up to 70%. DSCR requirements range from 1.25x (NBFC) to 1.75x (some PSU banks). LTV caps vary by property type and lender. We compute eligibility under each lender's policy to find the best fit for your file.
Next step
Get your file reviewed before you apply again.
Share basic details — a senior advisor will read your profile, diagnose what's blocking approval, and tell you exactly what to fix first.
- No CIBIL pull until strategy is agreed
- No blind portal submissions
- Review by a senior advisor — not a call-centre agent
Explore further
Continue your funding readiness journey
Funding Readiness Assessment
Score your business against the 6 pillars lenders actually evaluate.
Why Loan Applications Get Rejected
The 8 silent killers behind approval failures — and how to fix each.
Tax Planning for Loan Eligibility
How ITR & GST decisions today decide your borrowing capacity tomorrow.
Business Loan vs LAP
Which structure actually fits your cash flow, risk and tenure.
Credit Profile Improvement
From low CIBIL or rejection to a fundable file — the structured way.