How Much Personal Loan Can I Get on My Salary?

A personal loan is a relatively easier loan because lenders usually do not ask for any security or collateral. That is why if a need arises for some funds, you can always take a look at the option of getting a personal loan. One can use the loan amount for almost anything, and hence it is a favourable loan if you need extra funds.If you are wondering “how much personal loan can I get,” then you need to know that the eligibility for the loan amount depends on many factors; however, the most important ones are your income and your credit score. Lenders always want to be sure that you can pay back the loan, and your income gives them a good idea if that is true.

• The higher your income, the higher the amount you can borrow via a personal loan.
• If the amount is higher, then you can be quite flexible with your loan tenure as well.
• A higher income would also mean you would pay higher EMIs every month, which is considered a favourable quality when your loan is considered.

If you are a salaried individual, you can get a maximum personal loan of Rs. 50 lakh, while businesses can avail loan amount up to Rs. 1 crore to fund their financial needs. Banks usually evaluate your monthly income and typically approve a loan amount that is 30 times your monthly income.As far as EMIs are concerned, lenders find it favourable when the EMI is about 50%-60% of the monthly income. For instance, if your all-inclusive monthly income is within Rs.20,000 to Rs.25,000, there is a probability that your monthly instalment won’t exceed Rs.12,500, which is about 50% of your income received each month.There is no fixed criterion for the amount of loan one can get based on their salary. It all depends on the lender and other factors like the city you live in, other existing loans, CIBIL score, and so on.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.