login-icon
mahindra-finance-logo
login-icon
  • English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam
  • Punjabi
phone

Download App

Conveniently pay your EMIs, set payment reminders, view your loan details.

phone
|

How is the maximum loan amount decided?

mahindra-finance-author

by Mahindra Finance

|

May 30, 2024

|

1 mins read

While the maximum personal loan amount varies, lenders typically consider two key factors: your income and existing debts.

To ensure comfortable repayments, they often won’t approve loans where the monthly payment (EMI) exceeds 30% of your salary, especially for salaried employees. Additionally, they factor in your existing EMIs from other loans to assess your overall debt burden and ability to repay the new personal loan.

Related articles

5 Tips to Negotiate on a Car Loan

The new reforms passed by the Government has given a tremendous boost to the rural connectivity program. Under this plan, around 100 kilometers of rural roads will be constructed daily. Several car ma...

KNOW MORE

June 29, 2023

5 Reasons to Invest in Fixed Deposits

The best way to build your wealth is to invest wisely. As a part of this financial exercise, you can keep some portion of your savings in Fixed Deposits (FDs). These secure investment instruments offe...

KNOW MORE

June 29, 2023

What Is Hypothecation? A Simple Guide For Beginners

Introduction Ever thought what is hypothecation and why it is essential for securing a loan? Hypothecation refers to the practice of pledging an asset as collateral for a loan without transferring own...

KNOW MORE

July 4, 2024