How Much Personal Loan Can I Get Based on My Salary

Planning a wedding? Need funds for a medical emergency, home renovation, or your dream gadget? If you're asking yourself, "How much personal loan can I get on my salary?" — you're not alone. This is one of the most common questions among salaried individuals today. Whether you bring home ₹10,000 or ₹90,000 a month, knowing your eligibility can help you plan better and avoid loan rejection.

Personal loans are unsecured, meaning you don’t need to pledge any collateral. But how much you can borrow depends on your monthly income, credit score, existing EMIs, and the lender’s internal policies. The good news is, you don’t need to be a financial expert to figure this out. This guide will break it down in simple terms — so in just a few minutes, you'll know exactly how much loan you can get, what affects your eligibility, and how to increase your chances of approval.

What is a Personal Loan?

A personal loan is money you borrow from a bank or NBFC — without pledging any asset like your home or gold. That’s why it’s called an unsecured loan.

You can use it for anything you need — from paying medical bills or renovating your home to funding a wedding, education, or even a much-needed vacation.

The best part?
✅ It’s easy to apply
✅ No need for security or collateral
✅ Quick approval if you meet basic eligibility

If you're asking, “How much personal loan can I get on my salary?” — don't worry.
We’ve broken it down for you below with examples, salary-wise eligibility, and a simple calculator to help you estimate the amount.

What is the Personal Loan Eligibility Criteria?

The personal loan eligibility criteria vary among individual banks and NBFCs. Below, we have mentioned the general eligibility requirements expected from the individual applying for the personal loan:

• Age: The applicant must be between the ages of 21 and 65 years at the time of applying for a loan
• Monthly income: The applicant must prove their income to be at least INR 10,000 per month 
• Employment type: The applicant also needs to show their employment proof, regardless of whether they are a salaried or self-employed individual
• CIBIL requirement: The credit score of the applicant should be 700 or more
• Residency: The applicant should also showcase their valid address proof

How Do Lenders Calculate Your Personal Loan Eligibility?

Wondering how much personal loan you can get based on your salary? Here’s a simple way to understand it:

👉 Most banks follow this thumb rule:

Personal Loan Amount ≈ 20 to 25 times your monthly salary

So, if your monthly income is ₹30,000:
✅ You may be eligible for a loan of ₹6,00,000 to ₹7,50,000 — if you have a good credit score and no major ongoing EMIs.

What Else Do Lenders Look At?

Example:

Let’s say your monthly salary is ₹40,000
👉 Lenders may allow EMIs up to ₹16,000 (40% FOIR)
👉 Based on interest rates & tenure, you can get a loan of ₹4 to ₹6 lakhs

How Much Personal Loan Can I Get Based on Salary?

Thinking how much loan you can get on your current salary? While the actual loan amount depends on factors like age, credit score, city, job stability, and existing EMIs — here’s a quick breakdown to give you a general idea:

Real-Life Examples of How Salary Affects Loan Amount

Still wondering how this works in real life? Let’s look at two actual cases that show how salary, credit score, and job type can influence personal loan approval:

Example 1: Ramesh – Software Support Staff

• Salary: ₹25,000/month
• Loan Approved: ₹4 lakhs from My Mudra
• Purpose: Home renovation
• Credit Profile: Good score, no existing EMIs
• Approval Time: 2 days
• Loan Terms: 14% interest rate for 3 years

Example 2: Priya – Private School Teacher

• Salary: ₹15,000/month
• Loan Approved: ₹1.2 lakhs from CASHe
• Credit Score: 720
• Approval Basis: Stable salary and clean credit history

What Documents Will Be Required for a Personal Loan?

The document requirement for personal loans also varies among financial institutions. The general documents that are essentially asked for include the following:

• Identity and address proof: The most common documents submitted to prove these are the Aadhaar card and the PAN card. 
• Bank statement: The bank account records of the previous six months need to be showcased to the financial institution
• Salary slip: This is required for salaried employees. The salary slip must be provided for the last three months
• Photograph: 2-3 recent passport-sized photographs are also required

Tips to Improve Personal Loan Eligibility

Does the possible personal loan amount based on salary seem unsatisfactory? Here are the additional options to help you gain a better loan amount. Learn more about it here: 

1. Credit Score

A credit score can be improved by improving financial habits. It includes timely payment of dues, avoiding taking up multiple loans, maintaining a long credit history, reducing credit usage, and other factors.

2. Debt-to-Income Ratio

It is the ratio of gross monthly debt and gross monthly income. Lenders assess the ratio to determine whether the borrower will be able to pay back the loan. It can be improved by either increasing the income or by paying off the existing debts. The debt-to-income ratio must be in the range of 20% to 35%.

3. Avoid Too Many Loan Applications

Don’t apply for personal loans at many banks at once. Every time you apply, your credit score may take a small hit. Too many applications also make you look credit-hungry, which lenders don’t like. Stick with one or two trusted lenders.

4. Longer Tenure

You can choose a longer tenure to get a higher personal loan. It not only lowers the monthly EMI but also increases the possible loan amount. Thus, it is perceived as an effective option to get the desired amount without compromising too much on the existing budget.

5. Employment

Strive to maintain a stable employment status. Changing multiple jobs frequently exhibits an unstable income source that has a poor impact on repayment capacity.

Conclusion

In short, your salary is just one part of the personal loan puzzle. Your credit score, job stability, and existing loans also matter. Use a loan eligibility calculator to check how much you can borrow. And remember—borrow only what you can repay comfortably. For quick loan approval, you can apply online through trusted platforms like My Mudra, one of the top fintech companies in India.