How Much Personal Loan Can You Get on Your Salary? An Eligibility Guide for 2025

In 2025, rising living costs and increased digital credit adoption mean more people are exploring personal loans as their go-to option for funding.

When it comes to determining personal loan eligibility, lenders look beyond your monthly income. They use smart models that analyse your salary, spending behaviour, credit history, and even your digital transaction records.

However, your monthly salary continues to remain an important factor, especially in metro cities like Mumbai and Delhi where the living costs are already high. 

 How do banks calculate personal loan based on salary?

The exact amount of an 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 a 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 account statements, creditworthiness, running EMI, and determines any monthly expenses that you might have before deciding on the amount you are eligible for.

 How much personal loan can I get?

It’s quite common to wonder how much personal loan you can get, given your salary. The bank considers several factors before deciding the approved amount. A 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 710 or above and earn a stable income, you can apply for IDFC FIRST Bank’s FIRSTmoney loan and get an approved loan offer of up to ₹10 lakhs at an affordable interest rate starting at just 9.99%. This loan offer permits you to apply for additional on-demand loans, depending on your specific financial requirements.

Additionally, you can choose from flexible tenures ranging from 9 months to 60 months to repay your dues. Also, you bear no charges on foreclosing your FIRSTmoney personal loan. The completely online application requires only your Aadhaar card number. You ‘ll need to display your physical PAN to complete the V-KYC (Video KYC) process.

Personal loan based on your salary in 2025

Wondering how much personal loan you can avail? The following table highlights how your bank might calculate the loan amount you are eligible for -

What if my salary is low?

Having a lower salary does not automatically disqualify you from getting a personal loan. However, it may impact the loan amount you're eligible for. Your repayment capacity will be assessed based on income, existing EMIs, and credit score. If your salary is low, you can improve your chances by opting for a smaller loan amount, extending the tenure, or applying with a co-applicant. A good credit history and stable employment also strengthen your profile. Financial institutions like IDFC FIRST Bank offer tailored solutions for salaried as well as self-employed individuals, making it possible to access credit even with modest incomes.

What affects my personal loan amount?

Several factors influence the amount you can borrow through a personal loan. Economic factors like the rate of inflation, the Reserve Bank of India’s lending policies, and changes in the repo rate play a significant role in determining your overall loan amount, including your monthly EMIs. While these conditions are beyond your control, there are certain micro or individual factors that you can work on to potentially improve your loan eligibility:

• Credit score: A higher credit score indicates reliable repayment behaviour, increasing loan eligibility.
• Income level: Steady and sufficient income assures lenders of your repayment capacity.
• Existing financial obligations: A high debt-to-income ratio may limit the loan amount you qualify for.
• Loan tenure: Longer repayment periods can lead to higher loan amounts but may also result in increased interest costs.

Ready to apply for a personal loan?

Applying for a personal loan in 2025 is easier than ever. You can digitally apply for a personal loan on your own terms – enjoying the convenience of a hassle-free, swift disbursal. With IDFC FIRST Bank, you can apply for FIRSTmoney, the entire loan process is paperless, requiring only your Aadhaar card number and displaying your PAN card to complete the video KYC process.

Steps to apply for IDFC FIRST Bank personal loan:

1. Click on Apply Now
2. Register with your mobile number
3. Confirm basic details to check eligibility
4. Choose loan preferences and link your bank account
5. Complete Video KYC by displaying your PAN card to get disbursal

Do note that the figures mentioned in the table 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 get multiple on-demand loans from your approved loan offer without any restrictions and repay your dues anytime with zero foreclosure charges!