Published on Mar 31, 2020Updated on Aug 28, 2024
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.
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:
Check out the personal loan option for salaried employees.
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.
Salary |
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.
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.
The documents required to apply for a personal loan for salaried individuals are usually minimal for a hassle-free and quick application experience. The documents required are as follows:
Document Type |
Particulars |
Identity Proof |
|
Signature Proof |
|
Address Proof |
|
Income Proof |
|
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 |
13% to 36.00% |
Processing Fee |
Up to 4.25% 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?
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:
You can apply for a personal loan as a new joinee if:
Else, you will not be eligible for a personal loan. Instead, you can apply for an overdraft facility or credit card.
Your personal loan eligibility will depend upon the following:
Factor |
Salaried Individuals |
Age |
Your age must be between 22 and 65 |
Nationality |
You must be a resident Indian |
Credit Score |
Your credit score must be 750 or above |
Work Experience |
Your work experience must be 1 year at least, of which the last 6 months must be under the current employer |
Minimum Income |
Your monthly income must be INR 25,000 if you live in Mumbai or Delhi and INR 20,000 for any other city |
Factor |
Salaried Individuals |
Age |
Your age must be between 25 and 65 |
Nationality |
You must be a resident Indian |
Credit Score |
Your credit score must be 750 or above |
Business Experience |
Your business must be at least 3 years old |
Minimum Income |
Your annual turnover must cross the minimum threshold set by the NBFC |
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.
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
Must Read: How To Choose 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:
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
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.
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.
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.
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.
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