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How Much Personal Loan Can You Get On Your Salary?

Published on Mar 31, 2020Updated on May 7, 2024

How Much Personal Loan Can You Get On Your Salary?

Personal loans are unsecured loans offered by banks and financial institutions that help you finance your requirements and help you deal with the uncertainties of life. People commonly avail of personal loans to finance education, marriage, health expenses etc.  According to data provided by the Reserve Bank of India, the amount of money borrowed in the form of personal loans has increased sharply in the past couple of years. Personal loan borrowings stood at Rs. 19.33 lakh crore as of June 2018 as compared to Rs. 5.89 lakh crore in 2010. This is because personal loans do not require the applicant to provide any collateral such as property or gold.

How Much Personal Loan Can I Get?

When thinking about taking out a loan the first question in your mind is - How much loan can I get? Other than the key question of maximum personal loan, it is also a matter of clearing all the required eligibility criteria.

The eligibility criteria differ for salaried as well as self-employed individuals. The eligibility criteria for applying for a personal loan is as follows:

  • The applicant must be an employee of a private or a public enterprise with a basic minimum turnover as per the company policy.
  • The applicant’s age must range between 21 to 60 years.
  • The income should be at least Rs. 25,000 in Mumbai and Delhi and Rs. 20,000 in other parts of India.
  • A self-employed person can avail of a loan calculated on the profit after tax based on the industry and should be in business for a minimum of 5 years.
  • The applicant should have a minimum of 1-year experience and 6 months in the present company.

Check out the personal loan option for salaried employees.

The following methods are used to calculate personal loan eligibility:

Multiplier Method

This is a popular method used by banks and financial institutions to calculate personal loan eligibility. The higher the salary and the better the reputation of the company, the higher the multiplier and the greater the chance of availing a higher loan amount at a lower rate of interest.

For example, if you are wondering how much personal loan can I get on a 30,000 salary. If you have no other EMIs, you can multiply your monthly salary by 27 to get the maximum loan amount you would be eligible for. In this case, it would be ₹8,10,000 with a tenure of 60 months. 

Let’s calculate taking into account other common salary figures.

Consider - how much personal loan can I get on a 20,000 salary? Sans any other financial obligations, you can expect to be eligible for a loan of Rs. 5,40,000. On the other hand, if you are wondering - how much personal loan can I get on a 40,000 salary, the loan sanction amount will be close to Rs. 10.80 lakhs. In case if you are speculating about how much personal loan can I get on a 50,000 salary, you can expect a loan amount of 13.50 lakhs to be sanctioned by SMFG India Credit. However, if you are deliberating on the loan amount with how much loan I can get on a 60,000 salary, the approved amount should be close to Rs. 16.20 lakhs. All of these figures come with a repayment tenure of up to 60 months.


Expected Personal Loan Amount

Rs. 20,000

Rs. 5.40 lakhs

Rs. 30,000

Rs. 8.10 lakhs

Rs. 40,000

Rs. 10.80 lakhs

Rs. 50,000

Rs. 13.50 lakhs

Rs. 60,000

Rs. 16.20 lakhs

Must Do: Calculate Your Personal Loan Eligibility Online!

All of the above examples assume that you don’t have any existing monthly obligations. Please note that these are just examples for your understanding. To know more about SMFG India Credit’s policies, please contact us or visit your nearest SMFG India Credit branch.

Know the minimum salary required for a personal loan before applying.

Fixed Obligation Income Ratio

This method is calculated based on the maximum instalments you can honour with your net income post expenses like rent, EMIs, etc. In most cases, lenders consider approximately 50-75% of the net income as instalments. In case your expenses exceed this percentage, banks either increase the tenure of the loan or reduce the amount sanctioned.

Let us consider a personal loan for a ₹30,000 salary. If you have a monthly EMI of ₹8,000, you can usually get a personal loan of up to ₹5.5 lakh. On the other hand, if the monthly EMI that you pay is lower, at say ₹3,000, you would be eligible for a much higher personal loan of up to ₹7.7 lakh – assuming you have a healthy credit rating and are looking for a tenure of 60 months.

Take a look at some of these possibilities.

Salary Figure

Existing EMI of Rs. 3000

Existing EMI of Rs. 5000

Existing EMI of Rs. 8000

Existing EMI of Rs. 10000

Rs. 20000

Rs. 4.08 lakhs

Rs. 3.60 lakhs

Rs. 2.88 lakhs

Not applicable

Rs. 30000

Rs. 7.70 lakhs

Rs. 6.00 lakhs

Rs. 5.50 lakhs

Rs. 4.80 lakhs

Rs. 40000

Rs. 8.88 lakhs

Rs. 8.40 lakhs

Rs. 7.68 lakhs

Rs. 7.20 lakhs

Rs. 50000

Rs. 11.28 lakhs

Rs. 10.80 lakhs

Rs. 10.08 lakhs

Rs. 9.60 lakhs

Rs. 60000

Rs. 13.68 lakhs

Rs. 13.20 lakhs

Rs. 12.48 lakhs

Rs. 12.00 lakhs

Here is everything you need to know about a personal loan of INR 1,00,000.

For exact figures, you can use the personal loan eligibility calculator. Do note however, that the calculator assumes that you already satisfy various other personal loan eligibility criteria in terms of credit score, employment history, bank statements and documentation. Your actual eligibility is a culmination of various factors. However, assuming that you satisfy these criteria, the personal loan eligibility calculator will help you get a good estimate of what you can expect before you apply.

What Documents Do I Require to Submit?

The documents required to apply for a personal loan for salaried individuals is usually minimal and hassle-free. The documents required are as follows:

  • Past 3 months’ salary slips.
  • Last 6 months bank account statements
  • KYC documents that include PAN and AADHAR card, driver’s license etc.

What are the Interest Rates offered by Personal Loan providers?

Loan providers offer personal loans at attractive rates based on your credit history, requirement and other factors. Lenders also charge processing charges in addition to the interest and foreclosure charges in case the loan is prepaid. Given below is a summary of SMFG India Credit’s personal loan interest rates and charges.

Interest Rate

11.99% to 36.00%

Processing Fee

Up to 3% the loan amount

Foreclosure Charges

0% to 7%

Loan Tenure

Up to 5 years

Lowest EMI (per lakh)

Rs. 2275

Must Read: How to Check CIBIL Score For Personal Loan?

I Just Joined My Job. How Can I Get a Personal Loan?

If you have just joined your new job, then falling into the “stable income” criteria of most lending institutions for personal loan eligibility might become difficult. However, there are 3 ways to apply for a personal loan for a new employee:

  1. Co-borrower
    In this case, you can be the main applicant for the personal loan and bring someone with a high CIBIL score, stable income, and disciplined repayment history. With such a co-applicant, your chances of getting a personal loan for new job employees becomes stronger. However, do note that not all lenders offer joint personal loans. Check your options with the lender before applying.
  2. Lowered Application Amount
    Irrespective of your salary, it is possible that the lender firm approves of a personal loan amount if it is reasonably low. This is because the primary requirement of you being able to pay back EMIs from your monthly salary is being taken care of. This depends on various parameters, including lender’s policy at the time of application.
  3. Check your Credit Score 
    Lenders will typically check your credit score to see if you have a history of paying your debts on time. If your credit score is low, it may be difficult to get approved for a personal loan. If you don't have a long credit history, try to establish a good credit score by paying your bills on time and keeping your credit utilization low.
    Keep in mind that personal loan terms and eligibility requirements may vary depending on the lender and your individual circumstances. It's a good idea to carefully research and compare your options before committing to a personal loan.

Eligibility Criteria for Personal Loan:

You can apply for a personal loan as a new joinee if:

  • You have spend at least 6 months with the current company
  • You have a total work experience of at least 1 year

Else, you will not be eligible for a personal loan. Instead, you can apply for an overdraft facility or credit card.

5 Factors That Decide your Personal Loan Eligibility

Your personal loan eligibility will depend upon the following:

For salaried employees:

1. Income: Your monthly income must be INR 25,000 if you live in Mumbai or Delhi and INR 20,000 for any other city.
2. Nationality: You must be a Resident Indian.
3. Age: Your age must be between 21 and 60.
4. CIBIL score: Your credit score must be 750 or above.
5. Work experience: Your work experience must be 1 year at least, of which the last 6 months must be under the current employer.

For self-employed candidates:

6. Income: Your annual turnover must cross the minimum threshold set by the NBFC.
7. Nationality: You must be a Resident Indian.
8. Age: Your age must be between 22 and 60.
9. CIBIL score: Your credit score be 750 or above.
10. Business experience: Your business must be at least 3 years old.

How Can I Check My Eligibility for a Personal Loan?

The eligibility criteria mentioned above refer to whether or not the lender will consider your application. However, depending on other factors, the limit on the maximum amount you can borrow is set. These criteria vary among lenders.

Prior to applying for a loan, it is advisable to work on factors that can increase the chance of your loan being approved. Your loan eligibility is calculated based on several factors that include your income, age, repayment capacity and other factors. You can also use a personal loan eligibility calculator to avail an estimate of the maximum loan amount and the different offers you are eligible for.

Follow a few simple steps using a personal loan eligibility calculator to receive an estimate of the loan amount, offers available and even receive a loan approval post uploading the relevant documents.

  • Enter your location.
  • Enter your age and date of birth. You require to be between 21-60 years of age to avail a loan.
  • Enter your monthly income in case you are a salaried professional. Self-employed professionals are required to enter profit after tax.
  • Provide details of all your current EMIs that include loans, credit card bills etc.

You will obtain a tentative amount of the loan you are eligible for. You can modify the rate of interest and tenure as per your requirements.

You have the option of calculating the exact loan amount you are eligible for by providing the additional details required. Next, using the personal loan EMI calculator, you can

  • Enter the amount under “Loan amount”
  • Set an interest rate
  • Next, vary the loan tenure to check how the EMI will change depending on the number of months you select.
Must Read: How To Choose A Personal Loan?

How Can I Improve My Eligibility for a Personal Loan?

It is always a good idea to work on your eligibility a couple of months before applying for a loan. Here are a couple of measures to improve your eligibility for a loan:

  • Pay off your existing debts that include credit cards and loans.
  • Avoid applying for more than one loan at a time.
  • Work on building a high credit score.
  • Ensure you have the required documentation - such as PAN, Aadhaar, valid address proofs, salary slips, bank statements, etc.

It is important to evaluate your requirements carefully before applying for a loan taking into consideration your requirements. Make yourself aware of the rules and regulations and make sure to honour the payments since this goes a long way in ensuring sound financial health.


More than how you apply, it matters where you apply to. Always choose a trusted and understanding lending lender like SMFG India Credit whose financing solutions are curated to help you make the most of your goals.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us


Can a salaried person get a personal loan?

Yes, a salaried person can get a personal loan if he/she falls into all the eligibility criteria set by the lending firm. If you wish to understand if you qualify for a personal loan then check out SMFG India Credit’s eligibility calculator.

How to calculate personal loan eligibility?

Personal loan eligibility will depend on a number of factors, like income, current CIBIL score, current income-to-debt ratio, city of residence, history, etc. To calculate such eligibility without ambiguity, use online personal loan eligibility calculators like the one by SMFG India Credit.

What is the minimum salary required to get a personal loan?

If you are a salaried employee living in the cities of Mumbai and Delhi, then your minimum salary must be INR 25,000 per month. If you are a salaried employee living in any other city, then your minimum salary must be INR 20,000 per month.

What is the maximum personal loan you can get in India?

Many lenders offer personal loans up to Rs. 25 lakhs* that can be availed by both business enterprises and individuals. Depending on your eligibility, SMFG India Credit may offer you maximum loan amount at affordable interest rates. 

Why can't I get approved for a personal loan?

There can be multiple reasons for rejection of a personal loan like:

  1. CIBIL score of less than 700.
  2. Absence of valid documentation.
  3. A history of defaulting on loans
  4. Inadequate income-to-debt ratio.

Additionally, failing to meet the eligibility criteria can also result in loan rejection.

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