Compared to most other loans, Personal Loans are easier to get. The lender may be a bank or a non-banking finance company (NBFC). In either case, it will extend Personal Loans to customers if they fulfil certain basic criteria. Some of these criteria are a decent income and a good CIBIL score.

The lender usually charges a higher rate of interest as Personal Loans are unsecured loans. The rate of interest may vary from 11.59% to 32% from lender to lender. That means the rate charged by ICICI Bank may be different from the interest rates of Bajaj Finserv.

How much Personal Loan you can get will mostly depend on your monthly income. The lender applies one thumb rule while processing the loan:

It ensures that the customer has enough money in hand to repay the equated monthly installments (EMI).

The rule is simple enough. The lender will see if the EMI is below 50% of your take-home income. It will check whether you have taken any other loan. For example, suppose your take-home income is Rs 20,000 per month. The bank will never extend a loan where the EMI comes to Rs 10,000 or more. This will hold even if you are not paying any EMI for other loans.

Also Read : When, How and Why A Personal Loan Can be a Financial Lifesaver?


What if my salary is between Rs 20,000 and Rs 30,000?

How much Personal Loan can I get on my salary?
Again, there is no particular formula for calculating your loan entitlement. The lender will check that you have not defaulted on earlier loans. Here, your CIBIL score will be the proof. It will also consider whether you are repaying any other loan at present.

If your take-home pay is Rs 25,000, the EMI on the loan will not exceed Rs 12,500. How much you can borrow is at the discretion of the lender. Banks and NBFCs can extend a Personal Loan of a maximum of Rs 25 lakh to individuals.


  • Approach the lender directly. This will give you a fair idea of what loan amount you will be entitled to.
  • There is no formula to calculate the loan you will get.
  • Procure your CIBIL score before approaching the lender. A score in excess of 700 is generally acceptable.
  • If your salary is below Rs 30,000, you could look at a gold loan instead. The interest rate is lower in a gold loan. Besides, foreclosure does not attract any penalty.

Are you eligible? Use a Personal Loan eligibility calculator based on salary

Personal Loans are extended to both salaried and self-employed individuals. Here is a quick look at the eligibility parameters.

Minimum Age 21 years
Maximum Age 60 years
Employment Type Salaried/Self-employed professionals/non-professionals
Employment Status Employed/In business for at least two years, at least one year with current employer/business
Minimum Income Rs 20,000–Rs 40,000 net income per month (varies according to area; the income requirement is usually higher in cities)
Maximum Loan Amount Up to Rs 25 lakh (based on income, repayment capacity, and existing EMIs)
Credit Score CIBIL score of 350–900

Do remember, there is a processing fee for Personal Loans. Has the lender already determined the loan amount and tenure? You can then quickly run a check of your EMIs with this simple calculator on the Bajaj Finserv website.

Apply for Personal Loan Check your Loan Eligibility Calculate Your EMI