What amount of funds can I borrow based on my salary (personal and home)?

Personal loans for salaried people are mainly dependent on their income and expense factors. Most banks mostly require a minimum monthly income of Rs. 20,000 to approve a personal loan for salaried people. However, there can be different eligibility requirements for personal and home loans which we will discuss in this article.

Personal Loan for Salaried People

Banks mainly use the below two methods to determine the eligible loan amount –

  1. Multiplier method
  2. Fixed Obligation Income ratio

Multiplier Method of Calculating Eligible Personal Loan for Salaried People

In the Multiplier method of calculating the eligible loan amount, the applicant’s monthly income is multiplied by 27 and the resulting amount is approved for a tenure of 60 months. Let’s understand by the following example –

Case 1

Monthly income – Rs. 30,000

Eligible loan – 30,000 * 27 = Rs. 8,10,000

Case 2

Monthly income – Rs. 40,000

Eligible loan – 40,000* 27 = Rs. 10,80,000

 

Fixed Obligation Income Ratio method of calculating Eligible Personal Loan for Salaried People

In the Fixed Obligation Income Ratio method of calculating eligible loan amounts, the banks also consider the financial obligations before approving the loan amount. The obligation is deducted from the monthly income and then multiplied by 27. Let’s understand by the following example – 

Case 1

Monthly income – Rs. 30,000

Financial obligation – Rs. 10,000

Eligible loan – (30,000-10,000) * 27 = Rs. 5,40,000

Case 2

Monthly income – Rs. 40,000

Financial obligation – Rs.10,000

Eligible loan – (40,000-10,000) * 27 = Rs. 8,10,000

Eligibility Criteria of Personal Loans for Salaried People by Leading Banks

 

Age (in years)

Income

HDFC Personal loan

21-60

Minimum Rs. 25,000

ICICI Personal loan

23-58

Minimum Rs. 30,000

IDFC Personal loan

25-55

Not Available 

SBI Personal loan

18-76 

Minimum Rs. 15,000

Tata Capital  Personal loan

22-58

Minimum Rs. 15,000

Kotak Personal loan

21-60

Minimum Rs. 25,000

Citibank Personal loan

21-60

Minimum Rs. 25,000

InCred Personal loan

21-55

Minimum Rs. 15,000

Standard Chartered bank Personal loan

22-58

Minimum Rs. 22,000

Bank of Baroda Personal loan

21-65

Not Available 

 

Key Features of Personal Loans for Salaried People by Leading Banks

 

 

Loan amount

Interest Rate

Processing fee

Payment tenure

Credit score needed

HDFC

Up to Rs. 40 lakhs

11% to 21%

Up to Rs. 4,999

12-60 months

750+

ICICI

Rs. 50,000 to Rs. 25 lakhs

10.75% to 19%

Up to 2.5% + GST

12-60 months

700+

IDFC

Up to Rs. 1 crore

10.49% onwards

Up to 3.5%

Up to 60 months

700+

SBI

Rs. 24,000 to Rs. 20 lakhs

10.55% to 13.55%

1.5% + GST

6-72 months

650+

Tata Capital 

Rs. 75,000 to Rs. 35 lakhs

10.99% to 24%

2.75% + GST

Flexible

750+

Kotak

Rs. 50,000 to Rs. 25 lakhs

10.99% onwards

3%

12-60 months

750+

Citibank

Rs. 10,000 to Rs. 30 lakhs

10.5% to 14.99%

2.00%

12-60 months

Not disclosed

InCred

Rs. 75,000 to Rs. 15 lakhs

16% to 36%

2% to 5%

12-60 months

750+

Standard Chartered bank

Up to Rs. 50 lakhs

11.49% onwards

Up to 2.25%

12-60 months

650

Bank of Baroda

1 lakh to 20 lakhs

10.20% to 17.55%

1% to 2% + GST

48-84 months

701

 

Home Loan for Salaried People

Home loans for salaried people are usually easy to get approved if you have a stable income, minimum financial liabilities, and you work for a reputable organization. Home loan eligibility criteria differ from bank to bank and are at their discretion. We will discuss the eligibility criteria by different leading banks.

Home Loans by Leading Indian Banks

HDFC Bank Special Home Loan Rates

Adjustable home loan rates

Loan slab

Interest rate

Credit score 800+

8.20%

Rest

8.40%-8.90%

   

HDFC Bank Standard Home Loan Rates

Adjustable home loan rates

Loan slab

Interest rate

Women (up to 30 lakhs)

8.60%-9.10%

Rest (up to 30 lakhs)

8.65%-9.15%

Women (up to 30.01 lakhs to 75 lakhs)

8.85%-9.35%

Rest (up to 30.01 lakhs to 75 lakhs)

8.90%-9.40%

Women (75.01 lakhs and above)

8.95%-9.45%

Rest  (75.01 lakhs and above)

9.00%-9.50%

   

SBI Standard Home Loan Rates

Adjustable home loan rates

Credit Score

Interest rate

800+

8.55%

750-799

8.65%

700-749

8.75%

650-699

8.85%

550-649

9.05%

No Credit Score

8.75%

   

LIC Housing Finance Home Loan Rates

Adjustable home loan rates

Credit score

Interest rate

800+ (Up to 15 crores)

8.30%

750-799 (Up to 15 crores)

8.40%-8.60%

700-749 (Up to 15 crores)

8.70%-8.90%

600-699 (Up to 15 crores)

8.95%-9.30%

Less than 600

9.40%-9.80%

 

ICICI Bank Standard Home Loan Rates

 

Adjustable home loan rates

 

Loan slab

Interest rate for Salaried

Up to 35 lakhs

9.70%

35 lakhs to 75 lakhs

9.70%

Above 75 lakhs

9.70%

   

IDFC Bank Standard Home Loan Rates

 

Adjustable home loan rates

 

Loan slab

Interest rate for Salaried

Up to 5 crores

8.75% onwards

   

Kotak Bank Standard Home Loan Rates

 

Adjustable home loan rates

 

Loan slab

Interest rate for Salaried

Up to 5 crores

8.30% - 9.00%

   

CitiBank Standard Home Loan Rates

 

Adjustable home loan rates

 

Loan slab

Interest rate for Salaried

Up to 10 crores

8.00% onwards

   
   

PNB Housing Finance Home Loan Rates

 

Adjustable home loan rates

 

Credit Score

Interest rate for Salaried

800+

8.75%-9.25%

775-799

8.80%-9.30%

750-775

8.95%-9.45%

725-750

9.25%-9.75%

700-725

9.55%-10.05%

650-700

10.65%-11.15%

up to 650

10.85%-11.35%

Cibil > 170

10.90%-11.40%

Cibil <=170

10.20%-10.70%

   

Bank of Maharashtra Home Loan Rates

 

Adjustable home loan rates

 

Credit Score

Interest rate for Salaried

For loans up to 30 lakhs

 

800+

8.00%

750-799

8.40%

700-749

8.70%

650-699

9.00%

600-649

9.05%

Below 600

9.50%

-1 to 05

8.90%

For loans above 30 lakhs

 

800+

8.00%

750-799

8.40%

700-749

8.70%

650-699

9.05%

600-649

9.10%

Below 600

9.70%

-1 to 05

9.05%

   

Punjab National Bank Home Loan Rates

 

Adjustable home loan rates

 

Credit Score

Interest rate for Salaried

For loans up to 30 lakhs

 

800+

8.70%

750-799

8.70%

700-749

8.85%

600-699

9.20%

For loans above 30 lakhs

 

800+

8.55%

750-799

8.60%

700-749

8.75%

650-699

9.10%

 

FAQ of What amount of funds can I borrow based on my salary (personal and home loans)

1:How can I calculate my personal loan eligibility based on my salary?

Banks calculate personal loan eligibility by the multiplier method and the fixed obligation income ratio method. In the multiplier method, your monthly income is multiplied by 27 to determine the eligible loan amount. In the fixed obligation income method, fixed monthly financial obligations are deducted from the monthly income to arrive at the eligible loan amount.

2:How much home loan can I get for my salary?

Your home loan eligible loan amount is dependent on a number of factors like age, income, financial obligations, etc. Different banks from different criteria based on which they determine the eligible loan amount.