The loan eligibility calculator shows you a suitable loan amount based on your age, financing tenor and net monthly income after deductions. It also helps you compare different repayment periods and choose the right loan for you, whether a personal loan, a car loan or a mortgage.

By entering the required details (monthly income - age - financing tenor), you can use the calculator to suggest a suitable loan based on your age, monthly income and repayment period, and to work out the loan amount that matches the monthly installment you can afford, helping you plan your finances before applying for a bank loan.

What is a loan calculator?

A loan calculator is an online tool that helps customers calculate the expected monthly installments on a loan and estimate the total interest and the total amount payable over the financing period, based on a set of inputs including the loan amount, the interest rate, how it is calculated and the repayment period.

The calculator is intended to give you an estimate only. The results should not be treated as final approval of a loan, nor as an indication of final pricing, as they are estimates that may be higher or lower depending on the bank's assessment and its review of your documents and monthly obligations. This raises an important question: how does the bank obtain customers' financial information?

The bank can obtain customers' credit information through a credit inquiry with I-Score, which provides a system containing each customer's credit facility data, such as the number of loans, how consistently installments have been paid on time, and the balance of each credit facility.

I-Score collects customer data from two main sources:

  • Monthly reports issued by banks and other lenders on the status of the customer's credit facilities, including balances and any late payments.

  • Reports that banks send periodically to the Central Bank of Egypt (CBE) showing credit risk records, negative lists and legal actions.

This data is converted into scores that express creditworthiness and reflect how likely the customer is to pay installments in the future. The following five factors are also taken into account when assessing creditworthiness:

  • Payment history: shows how many times installments on credit facilities from banks and lenders were paid late.

  • Amounts owed: the proportion of available credit card balances being used.

  • Length of credit history: calculated based on the following:

  • How long your credit accounts have been open

  • How long specific credit accounts have been open

  • How long it has been since the customer started using specific accounts

  • New credit applications: the number of inquiries made about the customer and the number of new loans obtained over the past year.

  • Types of credit facilities: the types of credit facilities the customer has obtained, such as credit cards and various loans, and how much of them is being used.

Some ways to improve your creditworthiness score:

  • Pay loan installments on time: paying installments on time accounts for the largest share of the total creditworthiness score. Being late on one or two installments will not significantly affect your score, but late payment should not become a habit, so that it does not prevent any future loan application from being approved.

  • Try to apply for credit facilities only when you need them, so that you can obtain further facilities if the need arises.

  • Keep your old credit cards: do not cancel an old credit card even if it is no longer active, as doing so would remove important information about your credit history from your creditworthiness report.

Which types of loans can the calculator estimate installments for?

The loan calculator can be used to estimate installments on a range of financing programs offered by banks, most notably:

1. Personal loans

The calculator helps estimate the monthly installment on a personal loan, which can be used to meet a customer's various needs, such as covering personal expenses, education costs or other purposes permitted by the financing program.

2. Car loans

The calculator can be used to estimate the monthly installment on car financing, adjusting the financing amount, repayment period and interest rate to see the expected cost based on the data entered.

3. Mortgages

The calculator helps estimate monthly mortgage installments based on the financing amount, repayment period and interest rate, allowing the customer to assess whether the monthly commitment suits their income. Financing terms, maximum amounts and repayment periods vary from bank to bank, and the required data may also differ depending on the type of loan and financing program.

What information do you need to use the loan calculator?

To use the loan calculator and get estimated results, the customer needs to enter some basic information, including:

1- Loan type

The customer selects the type of financing they want to calculate installments for, whether a personal loan, a car loan or a mortgage, if the calculator offers these options.

2- Monthly income

The customer enters the monthly income they earn from their job or their own business. Available financing programs may vary depending on the nature of the customer's income, for example employees who transfer their salaries to the lending bank, employees who transfer their salaries to another bank, and self-employed professionals, according to each program's terms.

3- Repayment period

The customer sets the period over which they want to repay the loan, in months or years, according to the tenors available under the financing program.

The repayment period affects the monthly installment and the total interest: extending the tenor usually lowers the monthly installment but may increase the total interest the customer pays over the financing period.

4- Age

The customer enters their age at the time of applying, because some banks require the customer to be no older than 60 when the loan ends, or 65, depending on each bank's terms.

How do you determine the right loan amount for your income?

Suppose a customer has a monthly income of EGP 10,000 and wants to repay a loan from it, and would like to know what financing amount could fit this installment.

In this case, they can use the calculator by entering their monthly income, along with the repayment period, the interest rate and how it is calculated.

The calculator then shows the estimated financing amount that matches the data entered, helping the customer decide what loan amount to look for at banks.

However, note that being able to pay an installment of EGP 5,000 (50% of monthly income) does not necessarily mean the bank will approve the resulting financing amount; the final decision depends on income, total existing obligations, the bank's terms and the applicable credit regulations.

It is also advisable for the customer to set aside part of their income for basic expenses and emergencies, rather than allocating the entire available amount to installments.

1. What is the benefit of using a loan calculator?

A loan calculator helps estimate the monthly installment and the total cost of financing based on the loan amount, interest rate and repayment period, and lets you compare several scenarios before applying for financing.

Do loan calculator results include administrative fees and insurance?

That depends on how the calculator is designed and what data it includes. If administrative fees, insurance and other charges are not included in the calculation, they will not necessarily appear in the total cost shown, so you should review the bank's financing terms.

Can the loan calculator be used to calculate a car loan installment?

Yes, it can be used to estimate a car loan installment if it supports this type of financing, by entering the loan amount, interest rate, repayment period and any additional data the calculator requires.

Can mortgage installments be calculated?

Yes, the calculator can be used to estimate mortgage installments if this option is available, bearing in mind that some mortgage programs may involve repayment mechanisms and terms that differ from personal and car loans.

Can you rely on the calculator's result as the final installment amount?

No. The calculator provides an estimate based on the data entered and the assumptions used in the calculation, while the final installment is determined by the bank's terms, the outcome of the credit assessment and the fees applied to the financing.

How do I know whether a loan suits my income?

You can start by working out how much you can set aside each month for repayments after deducting basic expenses and existing obligations, then use the calculator to estimate the financing amount that matches that figure. Keep in mind, however, that the bank sets the final loan amount based on your income, obligations and its credit terms.

How do you get the right loan for your financial situation?

Searching for the best requirements and features of the personal loans banks offer can be exhausting, full of financial jargon, complex calculations and many requirements. So if you determine the loan amount and repayment period that suit your current financial situation, along with the interest rate set by the bank, you can easily work out what installments you can pay, whether monthly, every three months, semi-annually or annually, depending on the nature of your income.

The bank will set the interest rate based on several factors, including the balances in your accounts with the bank, the loan repayment period, the risk level of lending to you, and the interest rates applied at other banks.

After you submit your loan application and provide all the required documents, the bank will respond with either approval or rejection and inform you of the terms specific to your case, such as the loan amount, interest rate, repayment period, and the installment amounts and schedule. You can also ask to increase the loan amount, shorten the repayment period or change the installment amounts and schedule, among other requests, as long as they do not conflict with the bank's policy, so that you get the right loan to meet all your financial needs.