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How Much Personal Loan Can I Get on My Salary?

  • Highlights

  • Approved loan amount will depend on monthly income

  • A higher income increases your scope of borrowing

  • Keep your credit score high to get a better deal on your loan

  • Approach lenders directly while applying for loan

One of the easier loans to avail, a personal loan makes sure you have the funds when you need it. This financing option is unsecured in nature, meaning most lenders wouldn’t require you to pledge any asset as security for the loan. This is also the reason why such loans carry a comparatively higher rate of interest compared to secured loans which can have simple interest or compound interest.

Check your cibil score for free

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

Additional Read : What is Repo Rate and How Does Repo Rate Impact On Personal Loan?

There are other reasons behind considering your monthly income a vital standard, prior to extending you a personal loan. Some of them are:

  • Higher your income, more will be your scope of borrowing

  • You will then be flexible with the chosen loan tenor as well

  • Higher the CIBIL score, more the chance of getting lower interest rates on personal loan.

Another factor that lending institutions often consider before signing the dotted line in the loan approval document is whether you have availed loans from other lenders or banks as well.

Additional Read : 4 Top Factors That Led to the Growth of NBFCs in India

How Much Personal Loan Will I Be Approved on My Salary?

Again, there isn’t really a standard income parameter to judge your suitability for a loan. The lender is likely to first check whether you have defaulted in the past and if you are currently servicing any loan, besides the one you are applying for.

  • There are a few things you should keep in mind:

  • Approach the lending institution directly

  • Keep your credit score above 700

Additional Read: How to Improve CIBIL Score

How much you are eligible to borrow is at the lender’s discretion. However, most banks and NBFCs limit a personal loan at Rs.25 lakh to an individual. Lenders evaluate the monthly income of loan applicants and the potential growth in it before approving a loan. In most of the cases, individuals are eligible for a personal loan amount of up to 30 times of their monthly income.

How to Apply for Bajaj Finserv Personal Loan

Additionally, to minimize risk of default, lenders keep the EMIs of the loan to about 45-60% of your monthly income. For instance, if your monthly income, inclusive of all deductions, is within Rs.20,000 – Rs.25,000, chances are the loan EMI amount wouldn’t exceed Rs.12,500, which is about 50% of your monthly income.

Additional Read: Where to check your CIBIL score


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 tenor and interest rate. You can also share a few basic details about yourself and check out all the pre-approved offers on personal loan, home, and business loans from Bajaj Finserv.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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