## 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.