If you earn ₹70,000 per month and are exploring personal loan options, you’re already in a strong position. But income alone doesn’t guarantee the loan amount you’ll be approved for. Lenders (banks and NBFCs) consider several factors before making a decision. In this blog, we’ll break down how much personal loan you can get on a ₹70,000 monthly income, what influences your personal loan eligibility, and how you can maximise your chances of approval for a personal loan.

Key Factors for Personal Loan Amount Calculation

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 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. Current EMIs & Debt-to-Income Ratio (DTI)

• 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. Tenure of Personal Loan

• 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 ₹70,000?

Here are the calculations of the maximum loan amount you can get if your salary is ₹70,000. We have used multiple methods lenders use to calculate the eligible loan amount for you, based on your income.   

Multiplier Method:

If your monthly income is ₹70,000 and the lender allows 10 to 20 times the loan amount to be equal to the income, depending on the policy.

Debt-to-Income Ratio:

Suppose your salary is ₹70,000, you are paying an EMI of ₹8,000, and the EMI of the new loan will be ₹20,000. So, your total debt-to-income ratio would be 40%. You can have a loan amount for which the EMI amount of all the loans should not exceed 50% of your monthly income.  

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

Also read: Can I take multiple personal loans in India?

Way to Calculate Your Personal Loan Amount

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

Example Calculation:

• If the monthly salary is ₹70,000.
• And the lender offers 10x salary.
• Maximum Loan = ₹ 70,000 × 10 = ₹7 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 monthly income of ₹70,000 places you in a strong position to access higher personal loan amounts, especially if you have a good credit score and stable financial profile. Lenders typically view applicants in this salary range as low-risk borrowers, which can lead to faster approvals, better interest rates, and more flexible repayment options.

At DMI Finance, we offer personal loans to both salaried and self-employed individuals earning ₹25,000 or more per month. With your ₹70,000 income, you’re eligible to apply for a loan that suits your personal or professional goals, without any paperwork or delays.

Ready to take the next step? Check your personal loan eligibility with DMI Finance now.

Frequently Asked Questions (FAQS)

1. Can I get a personal loan with a salary of ₹70,000 per month?

Mostly lenders offer personal loans to individuals earning ₹70,000 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 ₹70,000 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 ₹70,000 monthly income?

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 ₹70,000 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 ₹70,000 monthly income?

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 ₹70,000 salary earners?

Most lenders offer personal loans to individuals earning a monthly income of ₹70,000.  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 monthly income is ₹70,000?

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 ₹35,000.

9. How fast can I get a personal loan on a ₹70,000 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