How Much Personal Loan Can I Get On Rs 60,000 Salary?

When you're planning to take a personal loan, one of the most common questions that comes to mind is how much loan amount you can actually qualify for based on your salary.

For a monthly income of ₹60,000, understanding your eligibility for a personal loan is crucial for financial planning.

This blog will guide you on how lenders calculate your eligibility and how much personal loan you can get on ₹60,000 salary in India.

What is a Personal Loan?

A personal loan is an unsecured loan that can serve various purposes, such as medical emergencies, weddings, education, travel, or home renovations. Since it doesn't require collateral, the loan approval depends heavily on factors like income, credit score, and repayment capacity.

Suppose you're looking for a personal loan based on salary. In that case, your monthly income becomes the key determinant of how much you can borrow.

Factors Determining Personal Loan Eligibility on Rs 60,000 Salary

Here are the primary factors that influence how much loan you can get:

1. Income

Lenders assess your monthly income to calculate your repayment capacity. A higher income, such as Rs 60,000 per month, increases your chances of securing a larger amount.

2. Fixed Obligations to Income Ratio (FOIR)

FOIR is a crucial metric lenders use to determine your eligibility. It represents the percentage of your income already committed to existing financial obligations, such as EMIs, rent, or other debts. Ideally, lenders prefer if your total obligations do not exceed 50-60% of your income.

3. Credit Score

Your credit score reflects your financial discipline and repayment history. A good credit score (generally above 750) can increase your eligibility for a personal loan based on your salary.

4. Age

Your age plays a role in determining your loan tenure. Younger applicants may be eligible for longer tenures, which can influence the loan amount.

5. Employment Stability

Lenders also consider your job stability and the reputation of your employer. A steady income from a reputed organisation strengthens your loan eligibility.

6. Debt-to-Income Ratio

This ratio indicates the proportion of your income that goes toward repaying existing debts. A lower debt-to-income ratio improves your eligibility for a higher loan amount.

What's the Loan Amount You Can Get on a Salary of ₹60,000?

Let's break this down to provide a clearer picture. Most lenders in India use the following formula to calculate personal loan eligibility:

Maximum Loan Amount = (Monthly Income × Multiplier) – Existing Obligations

1. Multiplier Method

For a salary of Rs 60,000, lenders typically use a multiplier ranging between 20 to 30. That means you could be eligible for a loan between ₹12 lakh (60,000 × 20) and ₹18 lakh (60,000 × 30), assuming you have no other obligations.

2. Obligations Impact

The loan amount will be adjusted accordingly if you already have EMIs or other financial commitments. For example, if you pay ₹15,000 in monthly EMIs, your eligibility may be reduced to:

Maximum Loan Amount = (60,000 × 25) – 15,000 = ₹13.35 lakh

3. Tenure and Interest Rate

The loan tenure and interest rate also affect the final loan amount. Longer tenures reduce EMIs, making higher loan amounts more manageable.

Benefits of a Personal Loan on ₹60,000 Salary

1. Higher Loan Amount

With a decent salary of ₹60,000 per month, you can qualify for a substantial loan amount, depending on your financial obligations and credit profile.

2. Flexible Usage

Personal loans have no end-use restrictions, allowing you to use the funds for any purpose—be it medical emergencies, weddings, or travel.

3. Quick Disbursal

If you meet the eligibility criteria, the loan approval and disbursal process can be completed quickly, often within a day.

4. Unsecured Nature

Since no collateral is required, the process is straightforward and less risky for borrowers.

Also Read: 4-Stage Personal Loan Verification Process You Must Know

Tips to Maximise Your Loan Eligibility

If you're aiming to secure a higher personal loan based on salary, consider these tips:

1. Maintain a Good Credit Score

A credit score above 750 significantly enhances your loan eligibility. Pay your existing EMIs and credit card bills on time to maintain a healthy credit profile.

Also Read: How to Improve CIBIL Score - Smart Tips

2. Reduce Existing Obligations

Clear any existing debts before applying for a new loan. A lower FOIR improves your eligibility for a higher loan amount.

3. Choose a Longer Tenure

Choosing for a longer tenure reduces your monthly EMI, making qualifying for a higher loan amount easier.

4. Apply Jointly

If you're married, consider applying for a loan with your spouse as a co-applicant. The combined income will increase your eligibility.

5. Show Additional Income

If you have a secondary source of income, such as freelance work or rental earnings, include it in your application. Additional income boosts your repayment capacity.

Example Scenarios

Scenario 1: No Existing Obligations

If you earn ₹60,000 per month with no other EMIs, you could qualify for a personal loan of up to ₹15-18 lakh, depending on the lender's multiplier.

Scenario 2: Existing Obligations

If you pay ₹20,000 in monthly EMIs, your eligibility is reduced. Using a multiplier of 25, your potential loan amount would be:

(60,000 × 25) – 20,000 = ₹13 lakh

Scenario 3: Adding a Co-Applicant

If your spouse earns ₹50,000 per month, your combined income of ₹1,10,000 could increase eligibility significantly, allowing you to secure a loan of up to ₹25-30 lakh.

Conclusion

Understanding how much personal loan you can get on ₹60,000 salary is important for effective financial planning. Always borrow within your means and prioritise timely repayments to maintain financial stability.