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How Much Personal Loan Can You Get on Your Salary? An Eligibility Guide for 2026

Key Takeaways

The amount of personal loan you can get depends on your salary, expenses and credit history.
Lenders use the Multiplier method or the Fixed Obligation Income Ratio (FOIR) method to determine the amount of loan you are eligible for.
A regular income and a good credit score can increase your loan eligibility and reduce interest rates.

25 May 2026 by Team FinFIRST

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In 2026, rising living costs and the increased adoption of digital credit mean more people are turning to personal loans as their go-to funding option.

When determining personal loan eligibility, lenders look beyond your monthly income. They use smart models that analyse your salary, spending behaviour, credit history, and even your digital transaction records.

However, your monthly salary remains an important factor, especially in metro cities like Mumbai and Delhi, where living costs are already high.

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How do banks calculate personal loan based on salary?

The exact amount of an instant personal loan you are eligible for depends on your income and expenses. Banks mainly use the following two methods to calculate how much credit you can get:

1. Multiplier method

In the multiplier method, the bank multiplies your monthly income by 27 and approves the amount for a 60-month tenure. If you have any other financial obligations, that amount will be deducted from your monthly income and then multiplied by 27.

Here, the eligible loan amount = Net monthly income × 27

So, if your monthly salary is ₹50,000, you may qualify for a loan of up to ₹13.5 lakh, depending on the lender’s policy and tenure.

2. Fixed obligation income ratio (FOIR)

In this method, the amount that you are eligible for changes with your financial obligations. The bank examines your account statements, creditworthiness, and EMI payments and determines any monthly expenses you may have before deciding on the amount you are eligible for.

Here, the eligible EMI = (Monthly income × FOIR) − existing EMIs

For example, if your monthly salary is ₹50,000, the lender allows a 50% FOIR, and you already pay ₹5,000 in EMIs:

Eligible EMI = (₹50,000 × 50%) − ₹5,000 = ₹20,000

This means the bank may allow a new loan EMI of up to ₹20,000 per month.

How much personal loan can you get based on your salary in 2026?

The following table highlights how your bank might calculate the loan amount you are eligible for:

Monthly salary	Loan via the multiplier method	Loan via the FOIR method for various EMI obligations (Existing EMIs)	Suitable tenure
₹30,000	₹8.10 lakhs	₹7.70L (₹3,000 EMI) ₹6.00L (₹5,000 EMI) ₹5.50L (₹8,000 EMI) ₹4.80L (₹10,000 EMI)	Up to 5 years
₹50,000	₹13.50 lakhs	₹11.28L (₹3,000 EMI) ₹10.80L (₹5,000 EMI) ₹10.08L (₹8,000 EMI) ₹9.60L (₹10,000 EMI)	Up to 5 years
₹80,000	₹21.60 lakhs	₹18.06L (₹3,000 EMI) ₹17.58L (₹5,000 EMI) ₹16.86L (₹8,000 EMI) ₹16.38L (₹10,000 EMI)	Up to 5 years

Disclaimer: The figures in the table above are subjective and may vary based on multiple factors. Check with the bank about the loan amount you are eligible for before applying for a personal loan. You can get a tentative loan amount estimate using the personal loan eligibility calculator by IDFC FIRST Bank.

What affects your personal loan amount?

Several factors influence the amount you can borrow through a personal loan. Economic factors such as inflation, the Reserve Bank of India’s lending policies, and changes in the repo rate significantly determine your overall loan amount and monthly EMIs. While these conditions are beyond your control, there are certain micro or individual factors that you can work on to potentially improve your loan eligibility:

Credit score: A higher credit score indicates reliable repayment behaviour, increasing loan eligibility. For a FIRSTmoney personal loan you need a CIBIL score of 710+ for salaried employees.
Income level: Steady and sufficient monthly income assures lenders of your repayment capacity.
Existing financial obligations: Current EMIs, credit card dues, and other liabilities affect your debt-to-income ratio. A high debt-to-income ratio may limit the loan amount you qualify for.
Employment and job stability: Salaried applicants with stable employment or self-employed individuals with consistent income may receive better loan offers.
Loan tenure: Longer repayment periods can lead to higher loan amounts but may also result in increased interest costs.

What if your salary is low?

Having a lower salary does not automatically disqualify you from getting a personal loan. However, it may impact the loan amount you're eligible for. Your repayment capacity will be assessed based on income, existing EMIs, and credit score.

If your salary is low, you can improve your chances by:

Opting for a smaller loan amount: Applying for a lower loan amount reduces the lender’s repayment risk and improves your chances of approval.
Extending the tenure: Choosing a longer repayment tenure lowers your monthly EMI burden, making the loan more manageable based on your income.
Applying with a co-applicant: Adding a co-applicant with a stable income can strengthen your application and increase overall loan eligibility. However, it depends on the lender policies.
Improving your credit history and score: Paying EMIs and credit card bills on time helps build a stronger credit profile and improves lender confidence.
Maintaining stable employment: Consistently staying employed with a regular income source demonstrates financial stability and repayment capacity.

For a FIRSTmoney personal loan, you need a minimum monthly income of ₹10,000.

How can FIRSTmoney give you quick access to a flexible personal loan?

The IDFC FIRST Bank FIRSTmoney personal loan has a fully digital process. If you are salaried, have a CIBIL score of 710 or above and earn a stable monthly income, you can apply for this personal loan and get a loan offer of up to ₹15 lakhs at an affordable interest rate starting at just 9.99% p.a. You can also apply for additional on-demand loans from your approved loan offer, without reapplying from scratch.

FIRSTmoney also offers:

Flexible repayment tenures ranging from 9 months to 60 months

A paperless and quick application process, requiring only your PAN and Aadhaar number for application and original PAN card for Video KYC verification

Zero foreclosure charges, giving you the freedom to repay your dues early

Option to unlock higher loan offer by securely linking your bank accounts via Account Aggregator

This combination of instant clarity, digital convenience, and flexible borrowing makes FIRSTmoney a practical option for managing both planned and urgent financial needs.

Ready to apply?

Steps to apply for a FIRSTmoney personal loan by IDFC FIRST Bank:

Step 1 – Click on Apply Now.
Step 2 – Register with your mobile number.
Step 3 – Confirm basic details to check eligibility.
Step 4 – Choose loan preferences and link your bank account.
Step 5 – Complete Video KYC by displaying your PAN card to get disbursal.

Check your eligibility and access funds with FIRSTmoney

Your loan eligibility is not determined solely by your salary. Lenders also assess your existing EMIs, responsible credit behaviour, repayment history, and overall financial profile to understand your actual repayment capacity. Maintaining a healthy credit score and manageable financial obligations can improve both your eligibility and loan terms.

Explore FIRSTmoney now to access instant personal loans with flexible tenures, fully digital processing, and zero foreclosure charges.

Frequently Asked Questions

How do banks decide my personal loan amount based on salary?

Lenders estimate how much you can afford each month and work back to a loan size. They look at net monthly income, existing EMIs, credit score, employment stability, and the chosen tenure. Many use a fixed obligation-to-income ratio to keep total EMIs within a set share of take-home pay. They also consider employer category, city, and age. Cleaner bank statements and fewer recent enquiries can support eligibility.

If I earn ₹30,000 per month, how much personal loan can I get?

For a monthly income of ₹ 30,000, the typical maximum eligibility is about ₹8.10 lakh for a tenure of up to 5 years with no other EMIs. If you already have EMIs, the indicative eligibility is: ₹7.70 lakh (₹3,000 EMI), ₹6.00 lakh (₹5,000 EMI), ₹5.50 lakh (₹8,000 EMI), or ₹4.80 lakh (₹10,000 EMI). The final offer depends on your credit profile and the lender's policy. Use this personal loan eligibility calculator to get an indicative loan amount you are eligible for.

Will my CIBIL score change how much personal loan I can get?

A stronger CIBIL score usually helps with higher eligibility and better pricing, yet it is one part of the decision. Lenders also weigh net income, existing EMIs, repayment history, employment stability, and recent enquiries. Two applicants with similar salaries can receive different offers if their credit profiles differ. Keep credit utilisation low, pay credit card dues and EMIs on time, and avoid back-to-back credit applications. Check credit reports for errors and correct them before applying anywhere.

Can adding a co-applicant increase my personal loan limit?

Adding a co-applicant can raise eligibility where the product permits joint applications, and both incomes are verifiable. Lenders evaluate each profile’s credit score, obligations, and stability, then combine eligible incomes within policy limits. Documentation must support both applicants, including KYC, statements, and proof of income. Consider that joint liability applies to the loan. Check whether the lender allows co-applicants for personal loans and what documentation they require for assessment.

Does IDFC FIRST Bank have a salary-based loan calculator?

You can explore the personal loan eligibility calculator by IDFC FIRST Bank. These tools let you enter salary, existing EMIs, desired tenure, and an assumed rate to see an indicative range. Results are estimates since the assessment considers many factors. Use the calculator to test comfortable EMIs and tenures.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.