Understanding Eligibility for Salary-Based Personal Loan

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 of instant 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.”

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 750 or above and earn a stable income, you can apply for IDFC 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

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.

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 a personal loan via the IDFC FIRST Bank app or website. To help you in the application process, IDFC FIRST Bank customer support is available on 1800 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.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.