Business loan eligibility calculator: how much can I get

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Work out an indicative loan amount

Choose how a lender would look at your business, then enter a few numbers. The result is indicative. Lenders decide the amount.

Work it out from

Your business's accounts

Your monthly income

Net profit after tax, last full year ₹ a year

Enter a loss with a minus sign.

Depreciation ₹ a year

Interest paid on existing loans ₹ a year

DSCR a lender may want times

Use the minimum your lender asks for. The worked example below assumes 1.25.

Monthly net income ₹ a month

FOIR a lender may allow %

Lenders often allow 50% to 65%. It is lender practice and varies by lender.

Existing EMIs ₹ a month

Include every loan that is running.

Interest rate for the new loan % a year

An example rate, not a market rate. Use your lender's quote if you have one.

Tenure for the new loan months

Projected annual turnover, optional ₹ a year

Adds the working capital line by the turnover method. It is never added to the term loan figure.

Enter your numbers to see an indicative amount.

Indicative new loan -

Cash available for debt service a year: -
Most the business could pay in instalments a year: -
Existing EMIs a year: -
Most a lender may allow for all EMIs a month: -
Room for a new EMI a month: -

Indicative amount by tenure at the rate above
Tenure	Indicative amount
36 months	-
60 months	-
84 months	-

Indicative. Lenders decide the amount. Amounts are rounded down to the nearest ₹10,000 so they never read as a quote.

Turn this into an EMI

How it is calculated

Three methods, each with its source

Lenders do not publish one formula. These are the ways they usually work it out. Each card says whether the wording comes from a regulator or from lender practice.

From your accounts

CADS ÷ DSCR − existing EMIs × 12

CADS is cash available for debt service: net profit after tax plus depreciation plus interest on existing loans. The RBI's DSCR wording adds net cash accruals to interest and finance charges. Taking net cash accruals as profit plus depreciation is lender practice, not RBI text.

Divide CADS by the DSCR a lender wants to get the most the business could pay in instalments a year. Take off existing EMIs times 12, and divide by 12 for the room left for a new EMI each month.

From your monthly income

income × FOIR − existing EMIs

FOIR is the share of monthly income a lender allows for fixed payments. This method is lender practice. No RBI or ICAI definition was found, and lenders often allow 50% to 65%.

It suits proprietors a lender assesses on income rather than on full accounts.

Working capital by turnover

at least 20% × projected turnover

For small units with limits up to ₹5,00,00,000, a 2019 government reply described a simplified method that sets the limit at a minimum of 20% of projected annual turnover.

It is a floor in the method, not a promised limit. The lender decides the actual limit. This line is never added to the term loan figure.

To turn a monthly room into a loan amount, the calculator inverts the EMI formula: loan = EMI × (1 − (1 + r)⁻ⁿ) ÷ r, where r is the monthly rate and n is the number of months.

Worked example

Worked example: an example business

This is an example business, not a real file. The inputs are labelled, and the rate and the DSCR are assumptions for the example.

Worked example from the accounts: profit after tax ₹12,00,000, depreciation ₹3,00,000, interest ₹2,00,000, existing EMIs ₹30,000 a month
Step	Working	Result
Inputs	Profit after tax ₹12,00,000, depreciation ₹3,00,000, interest on existing loans ₹2,00,000 a year, existing EMIs ₹30,000 a month, new loan at an example 14% over 60 months, DSCR 1.25 (an assumption for this example)
Cash available for debt service	₹12,00,000 + ₹3,00,000 + ₹2,00,000	₹17,00,000
Existing debt service a year	₹30,000 × 12	₹3,60,000
Most the business could pay a year at DSCR 1.25	₹17,00,000 ÷ 1.25	₹13,60,000
Room for new debt service	₹13,60,000 − ₹3,60,000 = ₹10,00,000 a year, divided by 12	₹83,333 a month
Indicative new loan over 60 months	₹83,333 × (1 − 0.498601) ÷ 0.011667	₹35,81,418, shown as ₹35,80,000
At DSCR 1.50 instead	Room ₹64,444 a month	₹27,69,630 over 60 months
Working capital by the turnover method	at least 20% × ₹1,50,00,000	at least ₹30,00,000

Indicative amount by tenure

Indicative loan amount for the worked example over 36, 60 and 84 months at 14% a year
Tenure	Same monthly room	Indicative amount
36 months	₹83,333 a month	₹24,38,242, shown as ₹24,30,000
60 months	₹83,333 a month	₹35,81,418, shown as ₹35,80,000
84 months	₹83,333 a month	₹44,46,813, shown as ₹44,40,000

The same business assessed on income

Worked example from monthly income of ₹1,50,000 with FOIR 50% and existing EMIs of ₹30,000
Step	Working	Result
Most a lender may allow for all EMIs	₹1,50,000 a month × 50%	₹75,000
Room for a new EMI	₹75,000 − ₹30,000	₹45,000 a month
Indicative amount over 36 months	At an example 14% a year	₹13,10,000
Indicative amount over 60 months	At an example 14% a year	₹19,30,000
Indicative amount over 84 months	At an example 14% a year	₹24,00,000

Reading the result

How to read the result

The figure is an indicative amount, not an offer. Lenders usually take the most conservative view of the numbers.
A higher DSCR requirement, more existing EMIs or a higher rate all lower the amount.
A longer tenure raises the amount for the same monthly room, at a higher total interest.
See the EMI on that amount with the business loan EMI calculator, and check your DSCR with the DSCR calculator.

What moves the answer

What changes the answer

Profit, depreciation and interest set the cash the business has for debt service.
Existing EMIs use up part of that cash before a new loan is considered.
The rate and the tenure turn a monthly room into a loan amount.
The DSCR a lender wants differs by lender and product.
Collateral can change what a lender is willing to do. This calculator does not model it.

Know the limits

Limits of this calculator

It uses one year's numbers and four to seven inputs. It does not see your credit history, your CIBIL MSME Rank or your promoter's CIBIL score.
It does not see bank statement behaviour. See what your bank statements tell a lender.
It does not model property value, so it is not a loan against property eligibility calculator. A loan against property is driven by the value of the property.
A business with a short track record may be assessed differently. See why lenders care about business vintage.
For the products behind these numbers, see term loans, working capital loans and cash credit and overdraft. For a working capital limit and drawing power, use the working capital calculator.

Good to know

Questions and answers

Straight answers on the method, the sources and what the numbers do and do not mean.

How much business loan can I get on my profit?

Lenders usually start from what the business can repay each year. This calculator adds profit after tax, depreciation and interest on existing loans, divides by the debt service coverage ratio (DSCR) a lender wants, and takes off what existing EMIs already use. On the example numbers that leaves ₹83,333 a month, which supports an indicative loan of about ₹35,80,000 over 60 months at an example 14% a year. Lenders decide the actual amount.

How do lenders calculate business loan eligibility?

Lenders usually look at repayment capacity from the accounts (the DSCR method), or at monthly income against fixed obligations (the FOIR method) for proprietors assessed on income. For working capital limits, a turnover method applies to small units. They also look at credit history, the CIBIL MSME Rank, collateral and bank statements, which this calculator does not model.

What is DSCR and why does it decide my loan amount?

DSCR is the debt service coverage ratio. In the RBI's wording, for a year it adds net cash accruals to interest and finance charges, and divides by the current portion of long-term debt plus interest and finance charges. A higher DSCR means more cash is left after debt payments. Net cash accruals as profit after tax plus depreciation is lender practice, not RBI text. The DSCR calculator on this site works it out in detail.

What is FOIR?

FOIR is the fixed obligations to income ratio: the share of monthly income that goes on fixed payments such as EMIs. No RBI or ICAI definition was found, so it is lender practice. Lenders often allow 50% to 65%, and each lender sets its own limit.

How much working capital limit can I get on my turnover?

For small units with limits up to ₹5,00,00,000, a 2019 government reply described a simplified method that sets the working capital limit at a minimum of 20% of projected annual turnover. On ₹1,50,00,000 of turnover that is at least ₹30,00,000. It is a floor in the method, not a promised limit. The lender sets the actual limit.

Do my existing EMIs reduce how much I can borrow?

Yes. Existing EMIs use up part of what the business can repay, so less is left for a new loan. In the example, ₹30,000 a month of existing EMIs is ₹3,60,000 a year, and that comes off the ₹13,60,000 the business could pay in total.

Does a longer tenure increase my eligibility?

For the amount, yes. The same monthly room supports a larger loan over a longer tenure: ₹24,30,000 over 36 months, ₹35,80,000 over 60 months and ₹44,40,000 over 84 months in the example. The total interest is higher, and a lender may cap the tenure.

Does this calculator check my CIBIL score?

No. It makes no credit enquiry and asks for no name, phone number or PAN. CIBIL is the credit bureau whose score and report lenders check. Lenders also look at the CIBIL MSME Rank, which runs from 1 (least risky) to 10 (most risky), and at the promoter's CIBIL score.

Do I need collateral for a business loan?

For micro and small enterprises, banks may not take collateral on loans up to ₹20,00,000 sanctioned or renewed on or after 01-Apr-2026, and may go to ₹25,00,000 at their discretion for units with a good track record. Above that amount it is the lender's call.

Is the amount shown here a loan offer?

No. Capnix is not a lender. The amount is arithmetic on the numbers you enter, shown as an indicative figure. Lenders decide the amount, rate and terms after they read the whole file. The free readiness check reads more of the picture.

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More calculators

Sources

How to read these figures

Capnix is not a lender. Rates, amounts and approvals are decided by lenders. Rates shown here are examples, not offers.

DSCR wording: RBI/2020-21/34, 07-Sep-2020, annex of ratios. Net cash accruals as profit after tax plus depreciation is lender practice.
FOIR: lender practice. No RBI or ICAI definition found, and the usual range varies by lender.
Turnover method: Press Information Bureau release of 23-Jul-2019 on a government reply about a simplified computation of working capital for micro and small enterprise units, minimum 20% of projected annual turnover for limits up to ₹5,00,00,000.
Collateral-free limit: RBI amendment of 09-Feb-2026, RBI/2025-26/206, for loans sanctioned or renewed on or after 01-Apr-2026.
Loan from EMI: the inverse of the standard EMI formula, a mathematical identity.
CIBIL MSME Rank scale: TransUnion CIBIL announcement of 22-Apr-2020.

Last checked: 02-Oct-2026.