How much Personal Loan can I get on 40000 Salary?

Hi, I have an account in Axis Bank and as I require a personal loan; I planned to opt for it from Axis Bank. To know how much amount I was eligible for, I got in touch with the customer service of the bank. I asked them how much loan can I get on 40 000 salary? He told me I would be eligible for Rs. 13.50 Lakhs. 

How Much Loan Can I Get On 40k Salary?

The bank employee told me that the bank calculates personal loan amounts by the Fixed Obligation Income Ratio method. In this method, the bank would examine my bank statement, running EMI, creditworthiness and check the monthly expenses. Only after that the bank will decide whether I would be eligible for a loan or not. 

As I mentioned above, the bank employee told me I would be eligible for Rs. 13.50 lakhs based on this method. He also said that the amount would be for a tenure of 5 years. 

• According to this method, if I have any monthly EMI of Rs. 3,000, then I would get Rs. 8.80 lakhs. 

• If the EMI is Rs. 5,000, then the amount would be Rs. 8.40 lakhs. 

• With an EMI of Rs. 8,000, the amount will be Rs. 7.68 lakhs. 

• Finally, if the EMI is Rs. 10,000, then the eligible loan amount will be Rs. 7.28 lakhs. 

And that’s it. I hope this helps. 

I availed a personal loan of Rs. 13.50 lakhs from IDFC bank last year. Before taking the loan, I wasn’t aware of how much amount I would be eligible for, and thus I called the IDFC bank customer service. I told them that I had an account with them and how much loan can I get on 40 000 salary. The executive told me the following. 

How Much Personal Loan For 40K Salary?

The executive told me that the amount of personal loan that I am eligible for is done through the multiplier method. In this method, the bank multiplies my monthly income by 27 and approves the amount for the tenure of 5 Years. 

She then told me that if I have any financial obligations, such as other EMI’s, etc, then that will deducted from my salary and then multiplied by 27.

Since I don’t have any financial obligations, she told me that I would get a personal loan of Rs. 13.50 lakhs for 5 years.

That is all that she told me when I asked her about the 40000 salary personal loan. I hope this helps. 

A personal loan can help you big time. I realised this 2 years back when my mother was suffering from heart disease, and we needed a big sum of money for her treatment. I opted to avail of a personal loan to arrange the funds. With an instant loan disbursement, we were able to get the treatment done on time, which saved my mother’s life. At that time, my salary was somewhere around 35000 rupees. I would like to share how much personal loan can I get on 40000 salary to help you out.

What is the personal loan for 40000 salary?

I would like to tell you that certain factors contribute to the actual loan amount that you receive. This consists of your income, expenses, current debts (if any), etc. In general, the minimum monthly salary of a borrower needs to be 20,000 rupees. This can vary based on the policies of the lender and also the city you’re in. 

Now, talking about how much loan amount you can receive if your salary is 40,000, we can calculate this with the help of a process called the multiplier method. The IDFC First Bank multiplies your monthly income by 27 to calculate the loan amount and lends it for a tenure of 60 months or 5 years.

Going by this calculation,

There is another method called the FOIR method, which is used by several banks for the same purpose.

Hopefully, my answer will help you to know the loan amount you can receive if your monthly income is 40,000 rupees. Have a nice day!