How Much Personal Loan Can You Get in India?

The maximum amount of money someone can borrow with a personal loan typically depends on factors such as credit score, income, and lender policies. In India, the amount can range from Rs. 50,000 to Rs. 4,000,000. Some lenders may offer higher amounts based on the borrower's profile and financial stability.

Factors Affecting Personal Loan Amount

Several factors determine the loan amount you can receive from a personal loan. Let's explore these in detail:

Multiplication Method

One of the most common methods lenders use is the Multiplier Method. The basic steps are as follows:

Lenders multiply your net monthly income by a factor that ranges from 9 to 18. The specific multiplier depends on your credit history and the reputation of your employer. For instance, if your monthly salary is Rs. 50,000 and the basic multiplier is 18, your maximum personal loan limit would be Rs. 900,000.

Loan Repayment Capacity

Banks and non-banking financial companies (NBFCs) typically offer personal loans ranging from Rs. 10,000 to 40 lakh. Your eligibility primarily depends on your loan repayment capacity, which considers your income and expenses. This means that the lender will evaluate your earnings and potential to repay the loan by considering monthly expenses and other financial commitments.

Minimum Income Requirement

Most banks require a minimum income of at least Rs. 20,000. In major cities like Mumbai and Delhi, the minimum income limit is set at Rs. 25,000. It's crucial to ensure that the loan amount aligns with your financial situation and repayment capability. Responsible borrowing ensures that you avoid financial strain and maintain a healthy financial status.

Bank-Specific Eligibility Criteria

Every bank in India offers different financial products with varied terms and conditions, eligibility criteria, and options for different income groups. When applying for a personal loan from Axis Bank in India, the following criteria apply:

You should be at least 21 years old at the time of application and 60 years old upon maturity. Minimum net monthly income requirement is Rs. 15,000. The loan tenure is typically between 12 to 60 months. Only salaried employees, those working in public sector undertakings, and salaried doctors are eligible to apply.

According to Axis Bank, the minimum and maximum loan amounts for eligible applicants would range from Rs. 50,000 to Rs. 5 lakh, respectively. During my application process, the bank checked my eligibility, age, documentation, and repayment capacity before disbursing the loan amount. They approved my loan request and disbursed Rs. 2 lakh to my bank account, which was instrumental in my decision to buy a two-wheeler and enjoy cruising on Indian roads.