Personal loan eligibility is a function of many factors, but it primarily depends on your salary, if you are a salaried individual and your expenses.A personal loan typically is an unsecured loan that the bank sanctions after factoring in your income and expenses. Most banks require that you have an income of at least ₹20000. The limits can be higher for people living in metro cities like Mumbai and Delhi.
How much personal loan can I get?
The amount ofinstant personal loanyou are eligible for depends on your income and expenses. Banks mainly use two methods, called the Multiplier method and the Fixed Obligation Income Ratio, to calculate how much credit you can get.”
In the Multiplier method, the bank multiplies your monthly income by 27 and approves the amount for the tenure of 60 months. If you have any other financial obligations, that amount will be deducted from your monthly income and then multiplied by 27.
In the Fixed Obligation Income Ratio method, the amount that you are eligible for changes with your financial obligations. The bank examines your bank statements, creditworthiness, running EMI, and determines any monthly expenses that you might have before deciding on the amount you are eligible for.
Having regular income and a good credit score can help you obtain higher loan amounts at lower interest rates. For instance, if you have a CIBIL score of 730 or above and earn a stable income, you can apply forIDFC FIRST Bank’s FIRSTmoney loan and get an approved credit limit of up to ₹10 lakhs at an affordable interest rate. This sanctioned credit line permits you to withdraw money unlimited times or at once, depending on your specific financial requirements. You only have to pay EMIs on the funds that you withdraw and not your entire approved credit limit, making FIRSTmoney one of the most customer-friendly loans that can help with taking care of dynamic expenses.
Additionally, you can choose from flexible tenures ranging from 2 months to 60 months to repay your dues. Also, you bear no charges on foreclosing your FIRSTmoney loan. The completely online application requires only your physical PAN to complete the V-KYC (Video KYC) process to
Also read - What is EMI Full Form
How much personal loan can I get on a ₹20000 salary?
According to the Multiplier method, on a salary of ₹20000, you will be eligible for ₹5.40 lakhs for 5 years. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹4.08 lakhs.
If you have around ₹5000 worth EMIs, you will get an amount of ₹3.60 lakhs; and on EMIs of ₹8000, you will get an amount of ₹2.88 lakhs. However, you will not be eligible for the loan if you have EMIs of more than ₹10000.
How much personal loan can I get on a ₹25000 salary?
According to the Multiplier method, on a salary of ₹25000, you can get a loan of ₹6.75 lakhs for 5 years. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹5.89 lakhs.
If you have around ₹5000 worth EMIs, you will get an amount of ₹4.80 lakhs; and on EMIs of ₹8000, you will get an amount of ₹4.40 lakhs. However, you will not be eligible for the loan if you have EMIs of more than ₹10000.
The amount of personal loan you are eligible for depends on your income and expenses. Banks mainly use two methods, called the Multiplier method and the Fixed Obligation Income Ratio, to calculate how much credit you can get.
How much personal loan can I get on a ₹30000 salary?
According to the Multiplier method, on a salary of ₹30000, you will be eligible for ₹8.10 lakhs for 5 years. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹7.70 lakhs.
If you have around ₹5000 worth EMIs, you will get an amount of ₹6.0 lakhs; and on EMIs of ₹8000, you will get an amount of ₹5.50 lakhs. If your EMIs amount to ₹10000, then you will be eligible for a loan of ₹4.80 lakhs.
How much personal loan can I get on a ₹40000 salary?
According to the Multiplier method, on a salary of ₹40000, you will be eligible for ₹13.50 lakhs for 5 years. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹8.80 lakhs.
If you have around ₹5000 worth EMIs, you will get an amount of ₹8.40 lakhs; and on EMIs of ₹8000, you will get an amount of ₹7.68 lakhs. If your EMIs amount to ₹10000, then you will be eligible for a loan of ₹7.28 lakhs.
How much personal loan can I get on a ₹50000 salary?
According to the Multiplier method, on a salary of ₹40000, you will be eligible for ₹16.20 lakhs for 5 years. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹11.28 lakhs.
If you have around ₹5000 worth EMIs, you will get an amount of ₹10.80 lakhs; and on EMIs of ₹8000, you will get an amount of ₹10.08 lakhs. If your EMIs amount to ₹10000, then you will be eligible for a loan of ₹9.60 lakhs.
However, the figures mentioned above are subjective and can vary depending on multiple factors. Check with the bank about the loan amount you are eligible for before applying for a personal loan. You can easily get apersonal loanvia theIDFC FIRST Bankappor website.To help you in the application process, IDFC FIRSTBank customer supportis available on1800 10 888. The process is hassle-free and gives you the freedom to decide your tenure. Lastly, if you are not sure about the loan amount you need, applying for a FIRSTmoney loan can be beneficial since you can withdraw funds from your approved credit limit without any restrictions on the number of withdrawals.
FAQs
Generally speaking, most lenders offer borrowers with good credit scores loan amounts ranging from $30,000 to $50,000. Regardless of the maximum amount offered by the lender, the amount you qualify for will depend on your credit history, current score and your debt-to-income ratio.
How much can you borrow based on a certain salary? ›
Most lenders require that you'll spend less than 28% of your pretax income on housing and 36% on total debt payments. If you spend 25% of your income on housing and 40% on total debt payments, they'll consider the higher number and qualify you for a smaller amount as a result.
How much can I get approved for a personal loan? ›
Although loan amounts vary across lenders, the maximum amount for personal loans typically ranges from $500 to $100,000. In some cases, you may qualify for a loan larger than what you need. Before accepting any loan, consider what you can afford to repay and be sure you don't borrow more than what you can manage.
How much income do I need for a 10k personal loan? ›
Each partner lender has its own credit score requirements. However, Upstart may still work with you if you don't have enough credit history to generate a score. In addition, you must have a minimum of $12,000 in verifiable annual income and meet other basic criteria.
What is the maximum loan based on monthly income? ›
Remember the mortgage rule of thumb-- no more than 36% of your gross monthly income should go toward debts, including a mortgage. And your mortgage shouldn't be more than 28% of your pre-tax earnings. If you have compensating factors, like excellent credit or large cash reserves, you may be able to swing a higher DTI.
How big of a personal loan can I get with a 700 credit score? ›
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
Can I borrow against my salary? ›
A payroll advance is basically a loan against your earnings. Your employer will release payroll funds early and recoup this money through future deductions to your paycheck. This can be tricky because payroll advances are regulated by both federal and state law.
How much is a $10,000 loan for 5 years? ›
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $10,000 | 5 | $207.54 |
| $15,000 | 3 | $466.52 |
| $15,000 | 5 | $311.67 |
| $20,000 | 3 | $617.45 |
13 more rowsMost mortgage lenders will want your monthly debt to be less than or equal to 43% of your gross monthly income. However, it's possible you could be approved with up to 50% or higher.
How much would a $3,000 loan cost per month? ›
The monthly payment on a $3,000 personal loan will depend on the loan term and the interest rate. For example, the monthly payment on a two-year $3,000 loan with an annual percentage rate (APR) of 12% would be $141.22. The monthly payment on a $3,000 loan with a six-year term and an APR of 12% would be $58.65.
You will almost certainly have no problems qualifying for a $5,000 personal loan if you have a substantial income and good credit. However, you may struggle to get approved if your income is inconsistent, you have a low credit score, or you already have considerable debt.
What is the minimum credit score for a personal loan? ›
To qualify for a personal loan, borrowers generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have a “very good” or “excellent” credit score of 740 and above.
Do personal loan companies check your bank account? ›
Your bank account information may be required either to verify revenues or to facilitate ACH payments. It is essential that when you are asked to provide personal information make sure you are dealing with a reputable company and using a secure website. (See tips below.) Loan approval regardless of credit.
Are personal loans hard to get? ›
It's not hard to get a personal loan from a bank if you have a good credit score and enough income to repay the loan. The bank will require some basic information from you and will consider factors such as your credit score, income, and existing debts to determine your eligibility for approval.
Do banks verify employment for personal loans? ›
Personal loans can verify employment, but it doesn't always happen. It is more common for a personal lender to verify your income, either with tax documents or bank statements, but the lender can absolutely call your employer to verify your status if they feel it's necessary to do so.
How much of your salary should go to loans? ›
The 28% / 36% Rule
As we've discussed, this rule states that no more than 28% of the borrower's gross monthly income should be spent on housing costs – but it also states that no more than 36% should be spent on total debt costs.
How much would a $100,000 personal loan cost? ›
Example Monthly Payments on a $100,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 24 months | 15% | $4,849 |
| 36 months | 15% | $3,467 |
| 48 months | 15% | $2,783 |
| 60 months | 15% | $2,379 |
3 more rowsJul 31, 2023
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $20,000 | 3 | $617.45 |
| $20,000 | 5 | $415.07 |
| $25,000 | 3 | $771.81 |
| $25,000 | 5 | $518.84 |
13 more rowsIt is possible to get a $100,000 personal loan, but it's challenging. Lenders don't typically offer loans as large as $100,000, with most banks and credit unions offering a maximum of $50,000. To qualify for a $100,000 personal loan, you'll need a credit score of 720 or above and a high income.
