Avail Instant Personal Loans ✓ Loan up to 50 Lakhs ✓ Quick Disbursal ✓ Minimum Documentation! Check Eligibility

There are a number of factors that determine how much loan amount one will be eligible for against their salary structure. A personal loan is among the most preferred credit options that one can obtain in times of financial crisis. Usually, personal loan amount ranges between Rs. 500 and Rs. 50 Lakhs. This type of financing is unsecured; therefore, lenders won't ask you to submit any collateral to secure the loan. This is another reason why the interest rates on these loans are substantially higher than those on secured loans.

Notably, your salary is one of the crucial factors that will determine the personal loan amount that you can borrow. Here, we are going to talk about a personal loan on salary and how much you can obtain from this unsecured credit instrument. 

You can get personal loan based on your salary, city of residence, age and other eligibility criteria. The usual range of personal loan amounts offered by banks and NBFCs is between Rs. 500 and Rs. 50 Lakhs. However, there are various factors that will determine how much of a personal loan you qualify for. 

Your repayment capacity is assessed by banks and NBFCs primarily based on your monthly income, which is further influenced by factors such as your monthly salary, your current loan repayment obligations (including those for the proposed loan), the income of any co-applicants (if any), etc.

Methods to Calculate Personal Loan Amount

When assessing your eligibility for a personal loan, the financial institutions will typically use the multiplier technique, the fixed obligation income ratio, or a combination of these two methods. Here is a detailed discussion for each of the methods. 

  • Multiplier method 

To determine a borrower's eligibility for a personal loan, banks and other financial organisations frequently employ this technique. Under this technique, lender calculate the eligibility of personal loan on the basis of a predetermined multiple of the income. The approximate range of this multiple is between 10 to 28 times of the applicant’s net monthly salary. The multiplier increases the likelihood of receiving a larger loan at a lower interest rate if you work at a reputed company with a higher salary. 

As an illustration, consider the question, "How much personal loan can I get on a Rs. 30,000 salary?" You can multiply your monthly earnings by 27 to determine the maximum sum you would be eligible for if you do not have any other EMIs. In this instance, it would be around Rs. 8 Lakhs with a 60-month repayment tenure.

The following table gives an idea about the maximum loan quantum one can be eligible for against a few monthly income figures: 

Expected Eligible Loan amount for Different Salaries

Monthly salary 

Loan amount 

Rs. 8,000

Rs. 1.90 Lakhs 

Rs. 12,000

Rs. 2.80 Lakhs 

Rs. 15,000

Rs. 3.34 Lakhs 

Rs. 20,000

Rs. 4.72 Lakhs 

Rs. 25,000

Rs. 5.90 Lakhs 

Rs. 30,000

Rs. 7.09 Lakhs 

Rs. 35,000

Rs. 8.27 Lakhs 

Rs. 40,000

Rs. 9.45 Lakhs 

Rs. 45,000

Rs. 10.63 Lakhs 

Rs. 50,000

Rs. 11.81 Lakhs 

Rs. 55,000

Rs. 13.50 Lakhs 

Rs. 60,000

Rs. 14.20 Lakhs 

Rs. 65,000

Rs. 15.36 Lakhs 

Rs. 70,000

Rs. 16.20 Lakhs 

Rs. 80,000

Rs. 18.90 Lakhs 

Rs. 90,000

Rs. 21.30 Lakhs 

Rs. 1,00,000

Rs. 23.63 Lakhs 

The examples given above all presume that you do not currently have any monthly responsibilities. Please be aware that these are merely examples provided for your comprehension. In order to know the actual loan amount, you must contact your lending institution and ask for the same.

  • Fixed obligation income ratio

The highest amount of instalments you can make using your net income after paying for things like rent and EMIs is the basis for this method's calculation. Lenders often count between 50 and 75 percent of net revenue as instalments. Banks either extend the loan's term or lower the loan amount if your expenses are greater than this proportion.

Let's take a look at a personal loan for someone making Rs. 30,000. A personal loan of up to Rs. 5 Lakhs can often be obtained if you have monthly EMI of less than Rs. 8,000. On the other hand, if your monthly EMI is lower, say Rs. 4,000, you may be qualified for a personal loan up to Rs. 7 Lakhs or more, provided your credit score is strong and you want a loan with a 60 months repayment tenure.

Consider a few of the following options: 


Ongoing EMI of Rs. 3,000 

Ongoing EMI of Rs. 5,000

Ongoing EMI of Rs. 8,000

Rs. 20,000

Rs. 4. 08 Lakhs

Rs. 3.60 Lakhs

Rs. 2.88 Lakhs 

Rs. 30,000

Rs. 7.70 Lakhs

Rs. 6.00 Lakhs 

Rs. 5.50 Lakhs 

Rs. 40,000

Rs. 8.88 Lakhs 

Rs. 8.40 Lakhs 

Rs. 7.68 Lakhs 

Rs. 50,000

Rs. 11.28 Lakhs 

Rs. 10.80 Lakhs 

Rs. 10.80 Lakhs 

Rs. 60,000

Rs. 13. 68 Lakhs

Rs. 13.20 Lakhs 

Rs. 12.48 Lakhs 

Use a personal loan eligibility calculator for precise results. Please be aware, however, that the calculator displays the results based on several variables provided by the user. Your actual loan eligibility is the result of many different things. But if you meet these requirements, using the personal loan eligibility calculator can give you a decent idea of what to expect when you apply. You can also calculate the EMI for the amount you wish to take as a personal loan through online EMI calculator.

What are the Interest Rates Offered?

Personal loans are available from loan providers at competitive rates depending on your credit report, repayment history, your monthly income and other variables. In addition to the interest rates and foreclosure fees in the event the loan is prepaid, lenders also levy processing fees. The table below shows the interest rates offered by some of the most reputed financial institutions in India:

Financial institution

Interest Rate(p.a)


30% p.a. Onwards


14% p.a. Onwards


15.95% p.a. Onwards

IIFL Finance

18% p.a. Onwards


21% p.a. Onwards


15% p.a. Onwards

Kotak Mahindra Bank

10.99% p.a. Onwards

L&T Finance

11% p.a. Onwards


16% p.a. Onwards


24% p.a. Onwards

Muthoot Finance

14.50% p.a. Onwards

PaySense Partners

14% p.a. Onwards


9.99% p.a. Onwards


2% p.m. Onwards

SMFG India Credit

12% p.a. Onwards


1.5% p.m. Onwards


10.99% p.a. Onwards

Please note that these charges are subjected to changes, and you should always discuss with the lender before applying for a loan.

To sum it up, individuals opting for a personal loan on salary should keep the above-mentioned pointers in mind. Further, one must ensure to borrow personal loan on salary as much as they actually need and spend the loan amount prudently on time. It is important to keep in mind that failing to repay even a single EMI can hamper your credit score and reduce the chances of loan approvals in the long run. 

Check below table for Different personal loan amount as per your need


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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