If you’re planning to apply for a personal loan then one of the first questions that comes into everyone’s mind is “How much loan can I get which would be based on my salary?” But the answer genuinely depends on multiple factors like your income, credit score, employer profile, existing obligations, and also on the lender’s internal policies.
Here are some general rules that you should look into:
Most of the banks and NBFCs follow a simple guideline:
- You can get a loan amount where the EMI does not exceed 40% to 50% of your net monthly income (after taxes and deductions).
- But if you already have existing EMIs (for a car loan, credit card, etc.), then those will be subtracted from this limit.
- For example: If your monthly salary is ₹40,000, and you have no existing loans, then you may be eligible for an EMI of around ₹16,000–₹20,000. Based on this EMI and loan tenure, you could get a loan between ₹2 lakhs to ₹4 lakhs, depending on the interest rate and tenure.
Salary-Wise Loan Estimate
Monthly Salary Estimated Personal Loan Amount
- ₹20,000 ₹1 – ₹2 lakhs
- ₹30,000 ₹2 – ₹3.5 lakhs
- ₹40,000 ₹3 – ₹5 lakhs
- ₹50,000 ₹4 – ₹7 lakhs
- ₹75,000+ ₹7 – ₹15 lakhs+
- But this is a rough estimate as the actual eligibility depends on your credit profile and lender terms.
Factors That Influence Loan Eligibility
- Credit Score: A score which is above 700, improves your chances of getting a higher amount of loan at a lower interest rate.
- Employer Type: Working with a reputed company or a government job increases your credibility.
- Job Stability: In today’s time the lenders prefer applicants with at least 6–12 months in the current job.
- Existing EMIs: If you’re already repaying loans, then your eligible loan amount will be lower.
- Loan Tenure: The longer tenure reduces the EMI, which may help to increase your approved loan amount.
Tips to Maximize the Eligibility
- You should maintain a high credit score.
- Keep your credit card balances low.
- Avoid applying for multiple loans at one time.
- You should submit the accurate income proof.
- Choose longer tenure for lower EMIs.
The amount of personal loan you can get based on your salary mainly depends on your income, obligations, and credit health. Use online eligibility calculators or consult lenders to get a precise figure before applying. And borrow only what you think you can comfortably repay.