Banks typically limit personal loans to 20 times your monthly income. This means the higher your salary, the higher your loan amount is likely to be.

These days, if a sudden financial need arises, people often resort to personal loans. Whether it's for home renovations, wedding expenses, or urgent funding for an urgent matter, personal loans from banks and NBFCs have become an easy option. But did you know that your salary and CIBIL score determine the loan amount you can receive? Let us tell you how to check your loan amount.

How much loan can you get based on your salary?

Banks typically limit personal loans to 20 times your monthly income. This means the higher your salary, the higher your loan amount is likely to be. In such a situation, if your salary is ₹25,000 per month, you can get a loan of up to ₹5 lakh. If your salary is ₹50,000, you can get a loan of up to ₹10 lakh. Furthermore, if your salary is ₹75,000, you can get a loan of up to ₹15 lakh. The higher your salary, the higher your loan amount. However, each bank has its own loan cap, with some banks granting loans up to ₹25 lakh, while others approve loans up to ₹40 or ₹50 lakh.

How much loan is appropriate?

According to financial experts, a person should take a loan whose EMI does not exceed half their salary. For example, if your monthly salary is ₹25,000, your EMI should not exceed ₹12,500. This way, repaying the loan is easy and does not impact expenses.

What factors determine the loan amount?

• Income - Your monthly salary and its source are the most important factors in determining the loan amount. The bank considers whether you have a stable job and regular income.
• Credit Score - A credit score is a three-digit number that reflects your credit card history. A score of 750 or higher leads to faster loan approval and lower interest rates.
• Current Loan - If you already have an existing loan, the bank also considers the current and current loan amount when granting a new loan.
• Loan Cap - A loan cap refers to a maximum limit set by each bank. Loans above that limit are not approved.

How to Check Your CIBIL Score

• To check your CIBIL score, visit CIBIL's official website www.cibil.com.
• Then click on Get Your Free CIBIL Score.
• Now, enter your name, PAN card number, date of birth, and email address.
• Then verify with the OTP.
• After verification, your credit report and CIBIL score will be sent to your email ID.