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 –
Multiplier method
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.