Personal Loan

How Much Personal Loan Can I Get in India?


Have you ever experienced a financial crisis due to rising product costs or demand? And considered applying for a loan but were put off by the lengthy and complicated procedure? If your answer is yes, you’ve come to the right place.

This post will discuss everything you need to know about personal loans, how much you may acquire in India, and the related terms and circumstances. Continue reading to keep up to date on personal loan limits in India.

What is a Personal Loan?

In layman’s terms, a personal loan is an unsecured loan. It may be used to pay various costs such as schooling, marriage, health care, etc. 

No collateral is required for this loan. But, the risk for lenders is greater than with a secured loan. According to a recent Reserve Bank of India press release, personal loans led the path towards the expansion of credit. The RBI noted a 20.8% growth in June of 2022. In addition, banks’ credit growth rose to 14% in the same month. This is in comparison to a 10.7% growth in the last quarter and 5.8% in 2021.

Features of Personal Loans

Let’s go through some aspects that will help you better comprehend what personal loans are. 

  • A personal loan does not need any security. It is determined by your creditworthiness and job history, as represented in your credit score.
  • Banks don’t do end-use surveillance on the amount issued as a personal loan.
  • A variable payback period spans from 1 to 60 months. It depends on your needs.
  • A personal loan may be obtained with little paperwork.
  • Within 48 to 72 hours, the sum of a personal loan is credited to your account.

Personal Loan Amount Calculation Methods

  1. FOIR (Fixed Obligation to Income Ratio)

FOIR is calculated by dividing your net monthly salary by your fixed monthly expenses. This demonstrates how much money you possess available (savings). Following that, the capacity of this disposable cash to cover debt payments is evaluated. The ideal FOIR proportion is between 40% and 50%, meaning your monthly expenses should not exceed 50% of your income. 

The FOIR ratio should be as low as possible to get the loan at better rates. 

  1. Multiplier Method

Many lenders use the multiplier method to assess whether a person can take a personal loan. This test is used to identify the personal loan amount based on a certain multiple of the applicant’s monthly net income. 

Depending on the lender and the applicant’s monthly income, the multiple could range from 10-24 times the applicant’s monthly income. So, if your creditor offers a loan amount 24 times the NMI (Net Monthly Income), and your NMI is Rs. 50,000, you can get a loan of Rs. 12 lakhs.

Maximum Amount That a Personal Loan Can Cover

While the amount varies by lender, you can typically obtain a loan of up to Rs. 20 to 30 lakhs if you are self-employed. Even so, some other variables may impact the loan amount.

Factors Influencing Personal Loan Eligibility

  1. Employment Situation

Lenders consider your employment situation. They assess the standing of the company for which you work. If you work for the government or a large firm, you may be eligible for a loan with a higher loan amount. If you have been with the company for more than a year at the time of the application, your chances are better.

  1. Income

One of the major elements of risk before approving a personal loan application is the applicant’s monthly income. It would be perfect if you could earn at least Rs. 20,000 per month. Though income is not the only demand, earning more than Rs. 20,000 does not guarantee acceptance. 

Lenders consider the amount they will have to pay for their financial duties when calculating the debt/income ratio.

  1. Credit Rating

A credit agency, such as CIBIL, provides a three-digit credit score. This scale runs from 300 to 900. It increases your credibility in the eyes of the lender. When evaluating your credit score, your initial debt payments, bills, and card payments, among many other things, are considered. 

If you’ve been paying all of your bills on time and have a good credit score, your chances of getting a new loan will increase. A score of at least 700 is preferred.

  1. Age 

The individual’s age is also very important. Borrowers must be between the ages of 22 and 58, based on the lender, for loans to be approved. Applying for a loan at or near retirement age can be difficult. This is because older people do not have a stable source of income.

Personal Loan Amounts Available in India

Bank NameLoan Sum (Rs.)Rate (per annum)
Central Bank of IndiaUp to 20 lakhs8.45% 
Union Bank of IndiaUp to 15 lakhs8.90% 
UCO BankUp to 10 lakhs8.45%
State Bank of IndiaUp to 20 lakhs9.60%
IDBI Bank25,000 to 5 lakhs9.50%
CitibankUp to 30 lakhs9.99%
HSBCUp to 30 lakhs9.75%
Federal BankUp to 25 lakhs10.49%
Kotak Mahindra BankUp to 30 lakhs10.50% 
IndusInd Bank50,000 to 15 lakhs11.00%
ICICI Bank50,000 to 25 lakhs10.50% 
Axis BankUp to 15 lakhs11.00%
HDFC BankUp to 25 lakhs12.50%
Standard Chartered Bank1 lakh to 50 lakhs11.00%


Lenders will approve your application for a personal loan after considering your income, expenses, and credit score. The maximum bank loan amount you are eligible for is determined using either the multiplier method or the fixed duty/income ratio. A personal loan typically requires a minimum of Rs. 20,000 in net monthly income. 

However, if you are still confused, you can visit Piramal Finance and check out their blogs to understand personal loans better. You may also take a look at their products and services.