How much Personal loan can I get ?

Its the question that a lot of people ask, when they apply or are looking at options to address their immediate cash requirements.

Banks follow two basic thumb rules for Personal loans:

1.Income Based-

A)Salaried- Average multiplier is 10-15 times of your salary.
Also your other Emis of Home loan, car loan plus this new loan cannot be more than 60% of your monthly Income.

B)Selfemployed-Average 8-10% times of your Income taxreturns.
Also your other Emis of Home loan, Car loan plus this new loan cannot be more than 60% of your monthly Income.

2.Expenditure based-Credit history based.

A) Loans based on emis paid on Home loan/Car Loans/Other personal loans- Banks seeing the credit history of the customer also give loans, here the Income in not verified and just his credit repayment is verified.Here you can get 50-70% of amount of your previous amount after verifying 9-12 months of emi paid of the previous loans.

B) Loans based on Credit card limit and expenditure- Some banks also give loans to customers who have a good track record of re-payment on their Credit cards .The multiplier is about 2 times of your Credit card limit .