Know About How Much Personal Loan Can I Get Based on Salary?
Wondering how much personal loan you can get? Calculate your personal loan eligibility based on salary from ₹10,000 to ₹90,000. Get accurate results in seconds.
When applying for a personal loan, the very first question that you would be thinking about is How much personal loan can I get? This depends on a number of different factors, and the most critical of them is your salary. Your income is evaluated by lenders in order to figure out how much you can really pay back every month. That helps them calculate your salary-based personal loan eligibility.
Income-Based Personal Loan Eligibility
Banks and NBFCs generally grant personal loans based on a borrower's annual or monthly income, besides other parameters like credit history, current financial liabilities, employment status, and address.
The following is an approximate idea of how income affects loan eligibility:-
| Monthly Salary (INR) | Estimated Loan Eligibility (INR) |
|---|---|
| ₹25,000 | ₹1.25 lakh – ₹2 lakh |
| ₹35,000 | ₹2 lakh – ₹3.5 lakh |
| ₹50,000 | ₹4 lakh – ₹6 lakh |
| ₹75,000+ | ₹6 lakh – ₹10 lakh |
Note: These numbers are approximate and could be different based on the policy of the lender.
How Lenders Determine Loan Eligibility
Most banks use the Fixed Obligations to Income Ratio (FOIR) method. That is, they take your monthly income and deduct outstanding financial commitments (such as EMIs, rent, etc.). The amount left is what they use to determine how much EMI you can pay for a new personal loan.
A typical FOIR range is 40%–60% of your net monthly income.
For example, if your monthly income is ₹50,000 and your FOIR is 50%, the lender may allow a maximum EMI of ₹25,000 for your personal loan. Based on the EMI amount, tenure, and interest rate, they can calculate the maximum loan amount you’re eligible for.
Use a Personal Loan Eligibility Calculator Based on Salary
To make this process easier, many lenders provide a personal loan eligibility calculator in terms of salary. It's an online application where you can fill in:
- Monthly salary
- Current EMIs
- Loan tenure desired
- Rate of interest
The calculator will provide an estimate of how much personal loan you are eligible for.
Important Factors That Determine Loan Amount
- Monthly Salary – Greater income = greater eligibility.
- Credit Score – 750+ score enhances your chances.
- Job Stability – Longer employment with a well-known employer is beneficial.
- Existing Debts – Fewer debts = improved eligibility.
- Location – Loan proposals can differ for metro vs. non-metro locations.
Personal Loan Eligibility Tips
Reduce existing loans to decrease your FOIR.
- Keep a healthy credit history.
- Select longer tenure to minimize EMI burden.
- Select joint loan application (e.g., with spouse).
Conclusion
So, how much personal loan am I eligible for based on my salary? That depends on several factors, but salary is the mainstay. Run a personal loan eligibility calculator by salary to find out the right estimate and keep your financial documents handy to increase chances of approval. Borrow responsibly at all times and make sure the EMI is easily within your means.