# How much Personal Loan on a salary of ₹15,000 are you eligible for?

• Updated on: 23 Oct 2023
• Published on: 9 Oct 2023

If you want to get a personal loan on a salary of ₹15,000 a month, you can do so with the right lender. Many financial institutions offer personal loans to individuals with a salary of ₹15,000 or less. That being said, the amount can vary and knowing how much you can borrow in advance can help you make informed decisions.

The personal loan amount varies because the method of calculating your eligibility varies across lenders. Moreover, there are numerous factors that affect the loan amount you can get.

So, read on to know how much personal loan you can get on a salary of ₹15,000 and the factors that affect this amount.

## How do lenders calculate the Personal Loan amount?

There are many factors that determine the maximum loan amount you can get from your loan provider. Lenders usually determine your loan eligibility using the multiply method and the FOIR method. Both of these methods calculate your loan amount based on your net salary and total monthly dues.

Read on for a brief explanation of each.

• Multiplier Method

This is a very straightforward method to calculate your personal loan amount. In this method, lenders offer the loan in multiples of 10 to 27 of your net monthly salary. The multiplier figure increases with your eligibility, so you can get the maximum multiplier for your monthly income if you do not have any existing loans or EMI and when your monthly income is high.

To better understand this, consider an example. With a salary of ₹15,000 per month, let us apply a multiplier of 10.

In that case:
Maximum Personal loan amount: ₹15,000 X 10 = ₹1,50,000.

• FOIR Method

FOIR stands for Fixed Obligation Income Ratio, which is an important factor in determining your loan amount by taking your monthly financial obligations into account. In this method, lenders compute your existing EMIs, credit card debts and other financial responsibilities, such as rent.

Formula to calculate FOIR = (Total obligations per month / monthly salary) x 100

Remember, lenders prefer FOIR of 50% or less, including the EMIs of the new personal loan you will take. Based on your FOIR, lenders decide on what to offer you as a personal loan on a salary of ₹15,000 a month. Usually, with this salary amount, you may be able to get anywhere from ₹50,000 to ₹1.5 lakhs.

## Factors that affect your Personal Loan amount

Apart from your salary, there are other factors that lenders consider when computing your loan amount. Take a look at these below:

• Age

Your age helps lenders decide how many years of employment you have left. If you are around 21 years of age, you have many more working years left. This assures the lender that you can repay the loan. However, lenders assume that repayment can become a struggle if you are closer to retirement age. Therefore, lenders hesitate to offer you a longer tenure or large loan amount if you are close to 55.

• Credit Score

This is the first thing lenders check when reviewing your application for a personal loan. This score between 300 and 900 indicates your creditworthiness and repayment capacity. The closer your score is to 900, the better the offer you can get. The majority of lenders have 750 as the minimum eligibility criteria for a personal loan. With this score, you can get the maximum loan amount as per your income.

• Employment Status

Personal loans are unsecured loans, i.e., no security or collateral is required. Therefore, financial institutions assess your financial stability based on your employment type and status. Generally, lenders prefer salaried employees who work with reputed public or private organisations for at least 1 year.

• Debt-To-Income Ratio

This is similar to FOIR and is calculated by dividing all your existing monthly debt payments by your net monthly income. A higher debt-to-income ratio reduces your chances of getting a higher loan amount.

Now that you know what to expect as a personal loan on a salary of ₹15,000, be sure to apply with caution. Check your eligibility with different lenders and compare different offers to choose the best deal.

With a digital lender like Fibe, you can get the best offer for a small cash loan. Moreover, you can choose suitable tenure and manage your EMIs per your budget for easy repayment. With easy-to-meet eligibility terms and quick disbursement, Fibe makes borrowing easy.

With Fibe, you can get up to ₹5 lakhs as a Personal Loan on a salary of ₹15,000 as a salaried borrower living in a non-metro city. You also get competitive interest rates and enjoy a simplified digital application process. To get funds in just 2 minutes, download our Personal Loan App or register on the website.

## Can I get a personal loan if my salary is ₹15,000?

Yes, with Fibe, you can easily apply for a loan from ₹5,000 up to ₹5 lakhs if your salary is ₹15,000 and you are a salaried applicant residing in a non-metro city.

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