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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 |
|
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.