A ₹60,000 monthly salary positions you well in terms of personal loan eligibility, but your borrowing capacity still depends on more than just your income. Wondering how much personal loan you can get on a ₹60,000 salary? You’re in the right place. This blog will guide you through the loan approval process, explain what lenders (Banks and NBFCs) evaluate, and help you understand the approximate loan amount you may qualify for with a ₹60,000 monthly income.

How Lenders Decide Your Personal Loan Amount: Key Factors

1. Monthly Salary & Income Stability

• The most important factor in deciding a personal loan amount for you is your monthly income. Higher income generally results in higher loan amounts.
• Salaried employees with a stable income have an advantage over self-employed individuals, as most lenders view them as lower risk. 
• To prove financial stability, self-employed individuals are asked to provide proof of income, such as ITR and bank statements.
• DMI Finance offers personal loans to salaried employees, self-employed individuals, and workers from informal sectors.

2. Multiplier Method to Calculate Your Loan Amount

To decide how much personal loan you can get, lenders often use a multiplier method on your monthly income.

• Formula: Loan Amount = Net Monthly Salary × Loan Eligibility Multiplier.
• Lenders often use the multiplier method to determine a borrower’s eligibility for the maximum loan amount. This approach calculates the loan amount based on the applicant’s net monthly income. According to this method, the loan amount can range from 10 to 24 times the applicant’s monthly income, depending on the lender and the applicant’s income level. 

3. Debt-to-Income Ratio (DTI) & Existing EMIs

• The debt-to-income ratio is the most important factor in deciding the loan amount. It is the percentage of your monthly income that goes towards debt.
• The Debt-to-Income Ratio (DTI) is calculated as total EMIs (current and the expected EMI of the loan you applied for)  / Net Monthly Income × 100.
• Most lenders prefer a maximum EMI to NMI ratio of up to 60% to reduce the chances of EMI default.

4. Loan Tenure

• The tenure you choose plays a key role in deciding your loan’s EMI, and thus, it impacts your debt-to-income ratio for the eligible loan amount.
• A short tenure results in a large EMI amount, while a longer tenure yields a smaller EMI amount. Although you pay more interest over a longer tenure than in a shorter tenure.
• Personal loan tenures generally range from 12 to 60 months.

How Much Personal Loan Can You Get If Your Income is ₹60,000?

Here are the calculations of the maximum loan amount you can get if your salary is ₹60,000. We have used multiple methods lenders use to calculate the eligible loan amount for you, based on your income.   

Multiplier Method:

If your monthly salary is ₹60,000 and the lender allows 10 to 20 times the loan amount to be equal to the salary, depending on the policy.

Debt-to-Income Ratio:

Suppose your salary is ₹60,000, you are paying an EMI of ₹12,000, and the EMI of the new loan will be ₹18,000. So, your total debt-to-income ratio would be 50%. You can have a loan amount for which the EMI amount of all the loans should not exceed 50% of your debt-to-income ratio.

Note: The actual loan amount varies based on credit history, employer profile, existing debts, and the lender’s policy.

Also read: Personal Loan Myths

Steps to Calculate Your Personal Loan Amount

Formula to Calculate Loan Amount: Loan Amount = Net Salary × Loan Multiplier.

Example Calculation:

• If the monthly salary is ₹60,000.
• And the lender offers 10x salary.
• Maximum Loan = ₹ 60,000 × 10 = ₹6 lakhs.

It is recommended to use an online loan eligibility calculator to estimate the loan amount based on your income and financial obligations.

How to Improve Your Loan Amount Eligibility?

• Choose Longer Tenure: Choosing a longer loan tenure reduces the EMI burden, making it easier to get a higher loan amount, but it also increases the total interest payout.
• Pay-off Existing Debts: Paying off existing EMIs or credit card dues reduces the debt-to-income ratio, increasing the chances of approval for a higher loan amount.
• Add a Co-Applicant: Applying with a spouse, parent, sibling, or friend can increase loan eligibility, as lenders consider the total income of both applicants in joint loan applications.

A ₹60,000 monthly income puts you in a favourable bracket for personal loan approvals. Lenders assess factors like your financial discipline, creditworthiness, and repayment history. With the right lender, you can take a higher loan amount without the burden of complex paperwork. DMI Finance offers personal loans to salaried and self-employed individuals earning a minimum of ₹25,000 per month. If you’re earning ₹60,000, you’re well-positioned to receive a loan that matches your goals. Click here to apply.

Frequently Asked Questions (FAQS)

1. Can I get a personal loan with a salary of ₹60,000 per month?

Mostly lenders offer personal loans to individuals earning ₹60,000 per month, provided they meet other eligibility criteria such as a good credit score and stable employment. DMI Finance offers personal loans to individuals with a minimum monthly income of ₹25,000.  

2. What is the maximum personal loan amount I can get on a ₹60,000 salary?

The loan amount depends on your income, credit score, existing EMIs, and lender policies. Generally, you may be eligible for a personal loan ranging from ₹50,000 to ₹6 lakhs.

3. What should be my credit score to get a personal loan on a ₹60,000 salary?

Lenders generally prefer a credit score of 750 and above. A higher score can help you get a bigger loan amount and better interest rates. DMI Finance offers personal loans to individuals with a minimum credit score of 700.

4. How is my loan eligibility calculated on a ₹60,000 salary?

Lenders usually calculate eligibility based on your repayment capacity and debt-to-income ratio. Other influential factors are credit score, employment stability, etc.

5. Can I improve my loan eligibility for a higher loan amount?

Yes, you can improve your eligibility for a higher loan amount by:

• Maintaining a good credit score
• Reducing existing EMIs or debt
• Opting for a longer tenure
• Adding a co-applicant, if possible

6. Can I get a personal loan without collateral on a ₹60,000 salary?

Yes, personal loans are typically unsecured, which means you don’t need to provide any collateral. DMI Finance offers personal loans without collateral.

7. Which lenders offer personal loans to ₹60,000 salary earners?

Lenders like DMI Finance offer personal loans to eligible applicants with a minimum monthly income of ₹25,000, subject to credit and documentation checks.

8. What should be my ideal EMI if my salary is ₹60,000?

Most lenders recommend that your total EMI should not exceed 50–60% of your monthly income. Therefore, all your EMIs should not be more than ₹30,000.

9. How fast can I get a personal loan on a ₹60,000 salary?

With NBFCs like DMI Finance, you can get personal loans with minimal paperwork and quick disbursal, often within 24 to 72 hours of approval.

10. Can I combine my salary with my spouse’s income to get a higher loan?

Many lenders allow you to apply for a personal loan with a co-applicant (such as your spouse, parent, or sibling) to increase eligibility for the total loan amount.

Personal Loans for Different Income Categories