Short answer: How much personal loan you can get depends mainly on your net monthly income, your existing EMIs, your credit score, and your employer. Lenders use two checks: FOIR (Fixed Obligation to Income Ratio), which caps your total EMIs at roughly 40 to 60 percent of your income, and a salary multiplier (often 10 to 24 times your monthly salary). The lower of the two figures is usually what you can borrow.
Two people earning the same salary can be approved for very different loan amounts. Here is what drives the number.
What decides your personal loan eligibility?
Lenders are really answering one question: can you comfortably repay? To judge that, they look at several factors together:
- Net monthly income: your take-home pay. Higher income supports a larger loan.
- Existing EMIs and obligations: current loans and credit card dues reduce how much more you can take on.
- Credit score: a strong score (750+) improves both your eligibility and your interest rate.
- Employer and job stability: salaried applicants at established employers are often viewed more favourably.
- Age and tenure: these affect how long you can repay over.
No single factor decides it. They combine, and the weakest link often sets your limit.
FOIR: the most important number
FOIR stands for Fixed Obligation to Income Ratio. It measures how much of your income is already committed to fixed monthly payments, and it is usually the single biggest determinant of your loan amount.
FOIR = (existing EMIs + credit card dues + proposed new EMI) divided by net monthly income, as a percentage
Most lenders want your FOIR, after taking the new loan, to stay within roughly 40 to 60 percent. The exact cap often tightens or loosens by income band: many private lenders cap lower-income applicants near 50 percent, and allow higher earners to stretch further. Push above the cap, and you are offered a smaller loan or declined.
Example: if you earn 60,000 a month and the lender uses a 50 percent FOIR cap, your total EMIs can be up to 30,000. If you already pay 10,000 in existing EMIs, only 20,000 of EMI capacity remains for a new loan. That remaining capacity is then converted into a loan amount based on the interest rate and tenure.
The salary multiplier method
Alongside FOIR, many lenders apply a salary multiplier, offering a loan of roughly 10 to 24 times your net monthly income, with the exact multiple depending on your income level and employer category. So someone earning 50,000 might see a cap in the region of a few lakh to over ten lakh, depending on their profile.
Here is the key: when both methods are used, the lender typically sanctions the lower of the two amounts. The more conservative figure wins, because it reflects the safer estimate of what you can repay.
How to increase how much you can borrow
If the amount you qualify for falls short, you have levers to pull:
- Reduce existing EMIs. Paying off or closing smaller loans and clearing credit card balances lowers your FOIR and frees up capacity.
- Improve your credit score. A higher score can unlock a larger amount and a better rate.
- Choose a longer tenure. A longer tenure lowers the EMI, which can increase the eligible loan amount, though you pay more total interest.
- Show all your income. Ensure any additional, verifiable income is on record, since eligibility is based on what you can document.
- Apply for a realistic amount. Requesting a figure aligned with your capacity improves approval odds and avoids wasted hard enquiries.
Eligibility factors at a glance
| Factor | Effect on how much you can borrow |
|---|---|
| Higher net income | Increases eligibility |
| Existing EMIs and card dues | Reduce eligibility (raise FOIR) |
| Credit score 750+ | Increases eligibility and lowers rate |
| Stable employer and job | Improves eligibility and multiplier |
| Longer tenure | Lowers EMI, can raise eligible amount |
Frequently asked questions
How much personal loan can I get on my salary?
It depends on your FOIR and your lender’s salary multiplier, along with your credit score and existing EMIs. As a rough guide, your total EMIs are capped at around 40 to 60 percent of your income, and loans often run to 10 to 24 times your monthly salary, with the lower estimate usually applying.
What is FOIR in a personal loan?
FOIR (Fixed Obligation to Income Ratio) is the share of your monthly income already going to EMIs and fixed obligations. Lenders use it to check whether you can afford a new EMI, typically capping it at 40 to 60 percent.
Why did I get approved for less than I asked for?
Usually because your FOIR or salary multiplier limits the amount, or your existing EMIs reduced your capacity. Lenders sanction the more conservative of their two calculations.
How can I increase my personal loan eligibility?
Reduce existing EMIs, improve your credit score, opt for a longer tenure, and ensure all your income is documented. Applying for a realistic amount also helps.
Does a longer tenure let me borrow more?
Often yes, because it lowers the monthly EMI, which can raise the eligible amount. The trade-off is more total interest paid over the loan.
Check your number: you can see your eligibility and a personalised offer for a Jupiter Personal Loan in a few taps, right inside the Jupiter app.
Know your number before you apply
The best way to avoid a disappointing offer is to understand your eligibility first. In the Jupiter app, you can check your eligibility for an instant personal loan of up to 5 lakh in seconds, and see the amount, tenure, and EMI you qualify for upfront, without a stack of hard enquiries. Jupiter is the 1-app for everything money.
Eligibility, FOIR thresholds, and salary multipliers vary by lender and are subject to change. Loans on Jupiter are facilitated in partnership with RBI-registered NBFCs, with approval at the lender’s discretion. This article is general information, not financial advice. Please borrow responsibly.
