About this tool
The India Personal Loan Eligibility Calculator tells you the maximum unsecured personal loan you can get from PSU banks, private banks, NBFCs and digital lenders in India in 2026, given your salary, existing EMIs, CIBIL score and lender choice. It applies the three rules every Indian lender uses in parallel and shows you which one is binding for your profile.
In May 2026 with the RBI repo rate at 6.25 percent, headline personal loan rates run from about 10.49 percent at top PSU banks for prime CIBIL 800+ profiles up to 24 percent at digital lenders for thin-file or sub-700 CIBIL borrowers. Salary multiple eligibility ranges from 30x monthly salary at the most generous PSU bank for a high-CIBIL salaried borrower down to 5x at a digital lender for a gig-worker profile.
How it works
- The lender applies a salary multiple: PSU bank 20-30x monthly, private bank 10-30x, NBFC 10-25x, digital lender 5-15x. Self-employed multiples use ITR profit and run 10-20x.
- The lender applies a FOIR cap on total EMI (existing + new) as a percentage of net monthly income. The cap rises with CIBIL: 60-65% for 750+, 55% for 700-749, 50% for 650-699, 40% or decline under 650.
- Your eligibility is the LOWER of the two caps, then capped at the lender product maximum (usually Rs 40 lakh).
- The maximum EMI back-calculates to a loan amount using the standard EMI formula at your chosen rate and tenure.
Formula
EMI per lakh = 100000 x r x (1+r)^n / ((1+r)^n − 1), r = annual/12/100, n = months
Max loan (FOIR) = Max EMI / EMI per lakh × 1 lakh
Final loan = min(salary multiple, FOIR-based, lender max)
Sensitivity: CIBIL +50 points
How your eligibility, applied FOIR and likely rate move across CIBIL bands, holding salary, existing EMIs and tenure constant:
| CIBIL band | Applied FOIR | Likely rate | Eligible loan | Outcome |
|---|
Worked example: Rs 75,000 monthly salary, CIBIL 760, private bank
Using the default inputs (Rs 75,000 net salary, Rs 10,000 existing EMI, CIBIL 760 in the 750+ band, private bank, 5-year tenure at 12% p.a.):
- Salary multiple cap: private bank at 20x salary = Rs 15 lakh.
- Applied FOIR: 60% for CIBIL 760, so max EMI = 75000 × 0.60 − 10000 = Rs 35,000.
- EMI per lakh at 12% / 60 months ≈ Rs 2,224. So FOIR-based loan = 35000 / 2224 × 1 lakh ≈ Rs 15.7 lakh.
- Lender product max: Rs 40 lakh - not binding.
- Final eligibility: min(15 lakh, 15.7 lakh, 40 lakh) = approximately Rs 15 lakh.
- Processing fee: typical private bank 1.5% on Rs 15 lakh = Rs 22,500 + 18% GST = Rs 26,550 deducted from disbursal.
Now raise CIBIL to 810 (top band, same salary). FOIR stays 60% (already at top) but the rate drops 100-150 bps, so the same EMI buys roughly Rs 16-16.5 lakh - about Rs 1 lakh more eligibility just from rate compression.
Lender-type comparison
| Lender | Headline rate (May 2026) | Salary multiple | Typical FOIR cap | Best for |
|---|---|---|---|---|
| PSU bank (SBI, BoB, PNB) | 10.49-13.5% | 20-30x monthly salary | 60-65% at CIBIL 750+ | Best rate for high CIBIL, salaried, government / PSU employees |
| Private bank (HDFC, ICICI, Axis) | 10.5-18% | 10-30x monthly salary | 55-65% at CIBIL 750+ | Fastest bank-route disbursal (1-3 days), pre-approved offers for salary account holders |
| NBFC (Bajaj Finserv, Tata Capital, Mahindra Finance) | 11-18% | 10-25x monthly salary | 50-60% at CIBIL 750+ | Marginal CIBIL, self-employed with ITR, larger ticket sizes (up to Rs 40-50 lakh) |
| Digital lender (KreditBee, MoneyTap, Fibe) | 14-24% | 5-15x monthly salary | 40-55% | Small ticket (Rs 50K-Rs 5L), instant disbursal, thin-file or gig worker |
How to actually increase your eligibility
- Clear small loans first: closing a Rs 3,000 EMI credit card balance transfer or buy-now-pay-later EMI lifts your FOIR headroom directly. Every Rs 1,000 of existing EMI cleared adds about Rs 50,000 of personal loan eligibility at 12% / 60 months.
- Add a co-applicant: joining your spouse's salary onto the application can lift the salary-multiple cap by 60-80% depending on the lender. Both FOIRs combine.
- Show variable pay: bonus, incentive and commission are usually accepted at 50% of annualised value if 12+ months of consistent payslips show them.
- Pick the right tenure: 5-year tenure gives 35-40% higher eligibility than 3-year for the same EMI capacity. Total interest is higher but if you prepay later it does not bite.
- Use the right lender bucket: a CIBIL 720 borrower will be rate-padded at most private banks but priced reasonably by a PSU bank where category 1-2 (salaried) is still the standard book.
- Negotiate the processing fee: 1.5-2.5% is the sticker but private banks frequently waive 50-100% of it for salary account holders, doctors, and certain employers on category lists.
The cheaper-borrowing waterfall (use in this order)
- Loan against FD at 8-9% if you have an FD over Rs 1 lakh - up to 90% LTV, instant, no CIBIL check.
- Top-up on existing home loan at 9.5-10.5% if you have a running home loan with sufficient property value cushion.
- Gold loan at 8.75-12% at banks (12-15% at NBFCs) if you have physical gold.
- Loan against securities at 10-11% if you have mutual fund or shares portfolio over Rs 5 lakh.
- PSU bank personal loan at 10.49-13.5% if you have CIBIL 750+ and a salary account.
- Private bank personal loan at 11-18% only if you cannot access any of the above and need 3-day disbursal.
Skipping straight to a personal loan when you own a Rs 5 lakh FD or have a 4-year-old home loan running is the most common mistake we see. Walk the secured-debt waterfall first.
Frequently asked questions
Why do NBFCs charge 18-24% on personal loans when PSU banks charge 10-12%?
NBFC and digital lenders accept higher-risk borrowers (lower CIBIL, no salary slip, gig workers) and have higher cost of funds because they cannot accept retail deposits. PSU banks fund loans from cheap CASA deposits at 3-4%, while NBFCs borrow from banks or markets at 8-10%. Both factors push NBFC personal loan rates to 14-24%.
When should I use credit card EMI conversion instead of a personal loan?
Credit card EMI conversion makes sense for small amounts (under Rs 1 lakh) and short tenure (3-12 months). Rates are 11-15% effective once you include the processing fee, comparable to a PSU bank personal loan but without the 3-7 day approval wait. For Rs 2 lakh+ or 24-60 month tenure, a personal loan is cheaper because the credit card fee compounds on the headline rate.
Does CIBIL score affect the rate or only the eligibility?
Both. CIBIL above 750 unlocks the lowest rate tier (10.5-12% at PSU banks, 11-13% at top private banks). CIBIL 700-749 typically adds 50-150 basis points to the rate AND lowers FOIR. CIBIL below 700 is often declined by banks and routed to NBFCs at 16-24%. The same person can get a 7-percentage-point difference in rate based purely on CIBIL.
Balance transfer vs top-up home loan: which is cheaper for an existing personal-loan borrower?
A top-up home loan is typically the cheapest unsecured-equivalent borrowing in India: 9.5-10.5% vs 11-18% for a personal loan. A balance transfer of a personal loan to a lower-rate lender saves money only if the remaining tenure is 24+ months and the rate drop is 200+ basis points after counting the new processing fee. For most borrowers with a running home loan, the top-up wins.
What are the RBI rules on personal loan prepayment penalty?
RBI rules prohibit prepayment penalty on FLOATING-rate retail loans. Most personal loans in India are FIXED rate, so lenders CAN charge 2-5% prepayment penalty after the lock-in period (usually 6-12 months from disbursal). If you find a RBI floating-rate prepayment personal loan (rare), prepayment is free at any time.
What FOIR percentage do Indian banks apply for personal loans?
FOIR (Fixed Obligation to Income Ratio) caps depend on CIBIL: 60-65% for CIBIL 750+, 55% for 700-749, 50% for 650-699, and 40% or decline for below 650. FOIR includes all existing EMIs (home, car, credit card minimum, other personal loans). The maximum new EMI is (salary x FOIR%) minus existing EMIs.
How is the salary multiple cap different from FOIR?
Salary multiple is the headline cap: PSU banks lend up to 20-30x monthly salary, NBFCs 10-25x, digital lenders 5-15x. FOIR is the affordability cap: max EMI based on take-home and existing obligations. Your actual eligibility is the LOWER of the two, then capped at the lender's product maximum (typically Rs 40 lakh).
Is a gold loan really cheaper than a personal loan?
Yes, materially. Gold loan rates in May 2026 are 8.75-12% at banks (Muthoot and Manappuram NBFCs at 12-15%). Personal loan rates are 10.5-24%. For amounts under Rs 10 lakh where you own physical gold, a gold loan saves 3-8 percentage points and disburses in 1-2 hours vs 3-7 days. Tenure caps at 12-36 months and the requirement to pledge physical gold are the only catches.