Personal Loan Eligibility: How Much Loan Can You Actually Get?

Applying for a personal loan only to have it rejected can hurt your credit score further. Before applying, it's vital to know your eligibility. Banks don't just look at your salary; they look at your Fixed Obligation to Income Ratio (FOIR) and your repayment capacity.

The FOIR Rule

Most banks limit your total EMI payments (including the new loan) to 40-50% of your net monthly income. This is called the FOIR limit. If you already have a home loan or car loan EMI, your personal loan eligibility drops significantly.

Factors Affecting Eligibility

1. Monthly Income: Higher income = higher loan potential.

2. Credit Score (CIBIL): 750+ gets you the best rates and highest limits.

3. Company Category: Employees of 'Category A' companies (MNCs, Public Sector) often get higher limits.

How to Increase Your Loan Limit?

• Add a co-applicant (spouse/parent) to combine incomes.

• Close existing small loans (Credit card EMIs) before applying.

• Opt for a longer tenure to reduce the EMI and fit within FOIR.

Conclusion: Don't guess. Use our eligibility calculator to see which banks are likely to approve your loan and for what amount.