A personal loan is one of the most convenient credit options in India, ensuring you have funds when needed. Since it is an unsecured loan, lenders do not require any collateral, making the approval process simpler. However, this also results in a comparatively higher interest rate than secured loans, which may have simple or compound interest. If you are wondering how much personal loan can I get, it depends on factors like income, credit score, and lender policies.
While applying for a personal loan is simple, getting it approved and sanctioned can be challenging. The approved loan amount depends on several factors, with your monthly income and CIBIL score being the most crucial. Lenders prioritise income to ensure you can repay EMIs on time, minimising the risk of default. A strong CIBIL score further increases your chances of securing a higher loan amount.
Before extending a personal loan, consider your monthly income as a crucial factor for several reasons, including:
The higher your income, the more will be your scope of borrowing.
You will then be flexible with the chosen loan tenure as well.
Higher the CIBIL Score, the more the chance of getting lower interest rates on a personal loan.
How much personal loan can I get on my salary?
Again, there is no standard income parameter to judge your suitability for a loan. However, to be eligible for getting a Bajaj Finserv Personal Loan. While applying for a personal loan on salary, the lender will check whether you have defaulted in the past or currently servicing any loan besides the one you are applying for.
The amount you are eligible to borrow is at the lender’s discretion. However, with Bajaj Finance Limited, the maximum personal loan amount you can get is up to Rs. 55 lakh. Lenders evaluate the monthly income of loan applicants and the potential growth in it before approving a loan. While these are general guiding principles for lenders, ensure that you have a good credit score and credit history. Any instance of previous default will hamper your chances of getting the desired loan amount or a favourable tenure and interest rate.
What are the eligibility criteria for personal loans for salaried individuals?
The eligibility criteria for a personal loan are as follows -
- Nationality: Indian
- Age: 21 years to 80 years*
- Employed with: Public, private, or MNC
- CIBIL score: 685 or higher
- Monthly salary: Starting Rs. 25,001, based on the city you live in
You should be 80 years* or younger, at the end of the loan tenure.
Documents required while applying for a personal loan
For a personal loan from Bajaj Finance, you must submit documents such as:
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
- Piped gas bill
- Pension order
- Letter of Allotment of Accommodation Issued by Employer
- Property / Municipal tax receipt
- Utility bill
- Real-time image / photograph
- Ration card
*You should be 80 years* or younger, at the end of the loan tenure.
Methods to calculate personal loan maximum amount
Lenders determine the maximum personal loan amount based on several factors, primarily your monthly income, existing debts, and credit score. Here are some common methods used to calculate loan eligibility:
- Multiplier Method – Lenders offer loans up to 30-40 times your monthly salary, depending on your income bracket and repayment capacity.
- Fixed Obligation to Income Ratio (FOIR) – Most lenders ensure that your total EMIs, including the new loan, do not exceed 50-60% of your monthly income.
- CIBIL Score & Credit History – A high CIBIL score improves eligibility, increasing your chances of securing a higher loan amount.
These methods help assess how much loan you can get based on your salary, ensuring responsible borrowing.
How much personal loan can I get on a Rs. 20,000 salary?
The personal loan amount based on salary depends on factors like income, credit score, and lender policies. If you're wondering how much personal loan can I get on my salary, most lenders offer loans up to 30-40 times your monthly income.
For a personal loan for ₹20,000 salary, you may be eligible for a loan ranging between ₹6 lakh to ₹8 lakh, depending on your financial profile. However, approval is subject to your repayment capacity and existing obligations. To explore loan options for lower salary brackets, check out personal loan for Rs. 20,000 salary for customised offers.
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