2 min read
25 May 2021

A personal loan is one of the easier options for availing of credit in India. It makes sure you have the funds when you need them. This financing option is unsecured, which means lenders would not require you to pledge any asset as security for the loan. This is also why such loans carry a comparatively higher interest rate than secured loans, which can have simple interest or compound interest.

Having said that, while applying for a personal loan is undoubtedly easier, getting it approved and sanctioned can be challenging. How much of the amount is ultimately approved will depend on a mix of factors – your monthly income and credit score probably being the most important factors among them. The reason why your income is given precedence over the other determinants is that a lender would want to be sure of your ability to pay back the EMIs on time, thus removing any risk of default.

Before extending you a personal loan, there are other reasons behind considering your monthly income as a vital standard. Some of them are:

  • 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 availing of 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. 40 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 our 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 have to submit documents such as:

  • KYC documents such as Aadhaar, passport, driving licence, voter’s ID, or a Letter of National Population Register
  • PAN card
  • Cancelled cheque
  • Bank account statements for the last 3 months
  • Salary slips for the last 3 months

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.

*Terms and conditions apply

Frequently Asked Questions

What is the minimum limit of a personal loan?

You can take out a personal loan starting at Rs. 20,000 without putting up any security.

How to calculate personal loan eligibility based on salary?

Everyone who meets the requirements listed below is eligible for our personal loan:

  • Monthly salary: Starting Rs. 25,001, based on the city you live in
  • Nationality: India
  • Age: 21 years to 80 years*
  • Employed with: Public, private, or MNC
  • CIBIL score: 685 or higher

*You should be 80 years* or younger, at the end of the loan tenure.

What is the minimum amount of a personal loan offered by NBFCs?

Customers can easily apply for personal loans from Bajaj Finance with loan amounts ranging from Rs. 20,000 to Rs. 40 lakh, without the need for collateral. This flexible loan offering allows customers to meet their diverse financial needs in a convenient and hassle-free manner.

How do lenders calculate personal loan amount eligibility?

Lenders calculate personal loan eligibility by evaluating an applicant's income, credit score, employment stability, and existing debts. They also consider factors like the loan's purpose and the applicant's financial history to determine the maximum loan amount a borrower qualifies for. Lenders employ various methods to determine an applicant's personal loan eligibility, with two common approaches being the Multiplier method and the EMI/ NMI ratio.

What is the multiplier method?

The multiplier method in personal loan eligibility is a simple formula that some lenders use to determine how much personal loan maximum amount they are willing to lend to a borrower based on their income. It's a rough estimate and can vary from one lender to another, but it provides a quick way for lenders to assess whether a borrower's income is sufficient to cover the loan repayments. The multiplier method typically involves multiplying the borrower's monthly or annual income by a specific factor or "multiplier" to arrive at the salary-based loan they are eligible for. The multiplier is determined by the lender's internal policies and risk assessment criteria.

What is the EMI/ NMI ratio?

The EMI/ NMI ratio, also known as the Equated Monthly Instalment, or Net Monthly Income ratio, is a crucial factor that lenders consider when evaluating an individual's eligibility for a personal loan maximum limit. This ratio helps lenders assess the borrower's ability to manage their monthly loan payments based on their monthly income. The resulting ratio is expressed as a percentage.
Lenders typically have specific EMI/ NMI ratio requirements that borrowers must meet to be eligible for a personal loan. A lower ratio indicates that a borrower's loan repayment obligations are a smaller portion of their monthly income, which is generally seen as a positive sign by lenders.

How much personal loan can I get on my salary? 

Calculating personal loan eligibility involves several factors such as your monthly income, existing monthly expenses, credit score, and repayment capacity. However, personal loan eligibility criteria can vary from lender to lender. You can make use of our online eligibility calculator to easily determine the qualifying personal loan amount based on your monthly salary.

Can I get a personal loan with a Rs. 15,000 salary?

The minimum salary to get our personal loan is Rs. 25,001.

How much maximum loan can I get on my salary?

The maximum loan amount you can get depends not only on your salary, but upon several other factors including your credit utilisation ratio, repayment history, CIBIL Score, and more.

What is the EMI for a Rs. 3 lakh personal loan?

The EMI depends not only on the amount, but on the tenure and interest rate as well. For example, the EMI for a Rs. 3 lakh personal loan, at an interest rate of 13%, for a tenure of 36 months, will be approximately Rs. 10,108.

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