How Much Personal Loan Can I Get on 60000 Salary

The amount of personal loan that you can avail of on a salary of Rs. 60,000 primarily depends on several factors, including your credit score, existing loan obligations, lender’s policy, and so on.

A higher credit score can result in approving a higher multiple of your monthly income as a loan. For instance, if your credit score is above 750, you might get a loan about 20 times your monthly salary, or up to Rs. 12 Lakhs. Also, if you do not have any existing loans, you might get a higher loan amount.

You can easily calculate your personal loan eligibility online using the personal loan eligibility calculator tool.

A personal loan of Rs. 60,000 is an easy way to finance your urgent personal requirements such as a wedding, home renovation, education, gadget purchase, an event in the family, and so on.

Since personal loans are unsecured, lenders like banks and non-banking finance companies (NBFCs) are extra cautious in assessing the borrower’s eligibility to ensure that there is no default.

Lenders generally use a number of metrics like credit score, monthly income, and existing loans to assess the borrower’s eligibility for a Rs. 60,000 personal loan. They prefer a stable income for sanctioning a personal loan of Rs. 60000 to reduce the chances of default.

Lenders hesitate to approve loan applications if the income of the applicant is too low or if a substantial part of their income is going towards repaying existing loans.

They also check the credit score of the applicant before approving a personal loan request. The credit score is used to assess the creditworthiness of a borrower. It ranges from 300 to 900, and a score of 750 or above is usually considered good for a personal loan approval. The higher the credit score, the higher the chances of getting a personal loan at lower interest rates.

Usually, most lenders require borrowers to have a monthly salary of a minimum of Rs. 15,000 to be eligible for a personal loan. However, how does a lender decide on how much loan amount to be given to a person with an income of Rs. 60,000?

Banks and NBFCs usually follow two methods to calculate the personal loan amount they sanction to an applicant - the Multiplier Method and the Fixed Obligations to Income Ratio (FOIR) Method.

Multiplier Method

In this method, lenders sanction a multiple of the borrower’s monthly income as a loan. The multiple can vary between 10 to 20 times, depending on the lender’s policy. Going by this metric, an applicant earning an income of Rs. 60,000 per month can get a personal loan of Rs. 6 Lakhs to Rs. 12 Lakhs.

The multiple will be higher depending on the applicant’s credit score. A person with a CIBIL score of more than 750 can expect to get 20 times their monthly salary (i.e. up to Rs. 12 Lakhs) as a loan, provided they don't have any existing loan.

Fixed Obligations to Income Ratio (FOIR) Method

In this method, lenders look at the borrower’s total monthly obligations like equated monthly installments (EMIs), credit card dues, and rent as a percentage of their monthly income. Unlike the multiplier method, lenders will also assess the fixed expenses of the borrower.

The FOIR percentage is calculated by dividing the borrower’s total fixed monthly expenses by their monthly salary and multiplying it by 100. Banks look for borrowers with a ratio or percentage of below 50%.

With a monthly income of Rs. 60,000, the applicant’s EMIs and other fixed expenses should not go beyond Rs. 30,000 per month. If a borrower's fixed obligations are Rs. 25,000 per month, their FOIR will be 42% (25,000 / 60,000 x 100 = 42). In other words, it means the monthly disposable income of the borrower is Rs. 35,000. Banks will decide the loan amount based on this disposable income.

The loan amount will be a multiple of the borrower’s disposable income and can range from Rs. 7 to Rs. 14 Lakhs. If the disposable income is higher, the amount of personal loans will be higher, and vice versa.

Other Factors

Not just the total loan amount but also the interest rate on the loan is decided by lenders depending on the lender's assessment of the repaying capacity of the borrower. Personal loan interest rates generally range from 10% to 20% p.a. So, if the borrower has a low income or credit score, the chances are that the interest rate on the loan will be high.

Eligibility Criteria for Personal Loan with Rs. 60,000 Salary

• Applicants must be aged at least 21 years when applying for the loan.
• Applicants should not exceed 60 years when the loan matures.
• The minimum net monthly income of the borrower should be at least Rs. 15,000.
• Salaried employees as well as self-employed individuals can apply for a personal loan.
• A CIBIL score of 750 or above is preferred.

You can check your personal loan amount eligibility by using the Personal Loan Eligibility Calculator.

Documents Required for Personal Loan for Rs. 60,000 Salary

• Last 6 months' bank statements.
• Recent 3 months’ salary slips and the latest Form 16.
• Anyone KYC document from Passport, PAN Card, Aadhaar Card, Driving Licence, or Voter’s ID Card.

Note: This is an indicative list. The bank may ask for additional documents on a case-to-case basis.

How to Apply for a Personal Loan with a Salary of Rs. 60,000?

• Visit the official website/ mobile app of the lender.
• Fill in the online personal loan application form by entering your mobile number, name, email ID, and other personal details.
• Verify income online or upload the last 6 months' bank statements as well as salary slips.
• Complete Video KYC.
• Provide some basic employment details.
• Choose a preferred personal loan amount and repayment tenure.
• You will be able to see the details of your loan EMI. Click on "avail now" or “apply now”.
• Congratulations! Your loan application is submitted, and the money will be transferred to your account within a few hours of getting approval.