Lenders usually use Multiplier Method and EMI/NMI Ratio or a combination of these two methods to calculate your personal loan amount eligibility.
1. Multiplier Method
Lenders multiply your net monthly income by a set number (usually between 10 to 24) to calculate loan eligibility.
For instance, if your salary is Rs. 40,000 and the lender uses a 15x multiplier, you can get personal loan of up to Rs. 6 Lakh.
Here’s a quick overview of how much personal loan you can get based on your monthly salary as per the multiplier method:
| Monthly Salary | Maximum Loan Amount |
|---|---|
| Rs. 15,000 | Rs. 2.25 Lakh |
| Rs. 20,000 | Rs. 3.00 Lakh |
| Rs. 25,000 | Rs. 3.75 Lakh |
| Rs. 30,000 | Rs. 4.50 Lakh |
| Rs. 35,000 | Rs. 5.25 Lakh |
| Rs. 40,000 | Rs. 6.00 Lakh |
| Rs. 45,000 | Rs. 6.75 Lakh |
| Rs. 50,000 | Rs. 7.50 Lakh |
| Rs. 60,000 | Rs. 9.00 Lakh |
| Rs. 70,000 | Rs. 10.50 Lakh |
| Rs. 80,000 | Rs. 12.00 Lakh |
| Rs. 90,000 | Rs. 13.50 Lakh |
| Rs. 1,00,000 | Rs. 15.00 Lakh |
Note: For the above calculation, existing loan repayment obligations has been considered to be zero. For the multiplier method, the maximum loan amount is 15 times the NMI.
2. EMI/NMI Ratio
This method evaluates what percentage of your income goes towards EMIs. Most lenders prefer an EMI/NMI ratio of under 50–60%.
If you’re already repaying loans, the new loan amount will be adjusted to keep the EMI/NMI ratio within limits.
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