For a salary between Rs 25,000 and Rs 2 lakh, how much personal loan will you receive? View the full calculation.

Salary : When you need money fast, personal loans are the most convenient solution. Salaried workers can readily get personal loans from banks. Personal loans, on the other hand, have annual interest rates that vary from 12 to 24 percent because they are unsecured. Now you may be wondering how much of a personal loan banks may provide based on my salary. Allow us to inform you that certain banks offer loans up to 20 times your monthly salary. If you have a monthly salary of ₹1 lakh, banks can offer you a personal loan of up to ₹20 lakh (multiplier of 20) or ₹30 lakh.

Monthly salary (in rupees)           personal loan limit (in rupees).

25,000 5 Lakh
50,000 10 Lakh
75,000 1.5 million
1 Lakh 2 million
1.25 Lakh 25 Lakh
1.5 Lakh 30 million
1.75 Lakh 35 Lakh
2 Lakh 40 lakhs

It is vital to know that the bank’s limits apply to the personal loan limit as well. Some banks limit personal loans to ₹25 lakh, while others allow loans up to ₹40 lakh. Axis Bank offers personal loans up to ₹40 lakh, whilst ICICI Bank offers loans up to ₹50 lakh.

Why do banks set limitations?

Banks employ this to discourage borrowers from borrowing more than they can afford. A person who want to obtain a significant loan is expected to be aware of his income so that he does not have any difficulty repaying the debt later.

Factors affecting personal loan limit

1. Monthly income: Your monthly income determines the maximum loan amount you can take out. As previously stated, the bigger your salary, the larger your personal loan amount.
2. Credit score: Your credit score will also influence your capacity to obtain a personal loan. This means that if you have an excellent credit score, banks may be willing to provide you a larger personal loan.
3. Loan EMI: The existing loan EMI plays a vital role in determining your personal loan limit. Assume you already have a debt of ₹5 lakh. If you accept a loan of ₹15 lakh and your maximum eligibility is ₹17 lakh, you will only receive ₹12 lakh (17 lakh – 5 lakh).
4. Loan cap: Most banks have set a limit loan amount beyond which they will not grant personal loans. Some banks put the cap at ₹20 lakh, while others go up to ₹40 lakh.

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