How To Decide On Personal Loan Amount Based On Salary?

A personal loan has become one of the easier options for borrowers to get it online. If you need funds due to some emergencies, you don’t have to worry about it because you know that you can easily get an instant cash loan online. And banks aren’t asking for any security or assets from you to avail a personal loan. This is why the interest rate of personal loans differs from bank to bank, and it is considered to be quite high interest when compared to other loans. 

Even though getting a personal loan is easy, the crucial aspect lies in the approval of your loan application. The amount that you can request for your cash loan totally depends on how much you are earning and your credit score. Income is the most important thing to decide about your loan. That is the only trust factor for lenders to believe that you will pay back the loan in EMI.

If your income is higher, then you will get a high amount of loan. With a low credit score, either your application won’t be approved, or you will end up getting a lower amount of loan. So, having a good cibil score and a high income is always important to get a higher loan and immediate approval of your loan application.

  • Multiplier method:

Individuals will get a loan of 10 to 24 times their net monthly income. Banks won’t be giving loans more than that. And the cibil score will also be considered in providing the loan. If you have Rs 40,000 as monthly income, then you will be getting Rs 9,60,000 as the highest instant cash loan possible.

  • Net monthly income ratio

If the individual has any existing loan going on, then the lender will check the EMI/NMI (Net Monthly Income) ratio. The total EMI should not go beyond 50% of the borrower’s income. So, we can easily calculate how much EMI we are allowed to take and avail of a loan based on that. You can go for a higher tenure to get lower EMI to get higher chances of loan approval.

  • Eligibility calculator

If you want to know the eligibility loan amount, you don’t have to visit a bank. Many banks have created their own eligibility personal loan calculator on their website. You can give the mandatory details by yourself as the user interface is friendly. You can check by yourself how much loan is required and how much you can take according to the chosen tenure. The eligibility calculator check will give you a clear vision of how much EMI you should pay for the chosen tenure. 


Getting a loan is easy, but the process involved in getting approval for your loan application is quite difficult. Knowing all the information mentioned in the above will be useful for any loan applicant. Even if the loan is small or high, everyone should be aware of the eligibility criteria and structure. Calculate your EMI using a reliable loan calculation method and then apply for an easy EMI loan for instant approval.