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July 14, 2025
Personal loans are unsecured funds, issued without collateral or guarantees for personal use. HDFC Bank offers loans ranging from ₹1 lakh to ₹50 lakhs, to be repaid over a tenure of 12 to 72 months through EMI or equated monthly instalments.
To facilitate the quick processing of personal loans to the salaried segment, HDFC Bank has developed a methodology that is applied based on the customer’s profile, enabling the calculation of loan amounts that can be issued as personal loans. The system has been established, drawing on years of experience in lending personal loans, to minimise defaults and help eligible applicants access the maximum funds.
The HDFC Bank eligibility calculator, for the personal loan amount, takes into account the following criteria;
Using the above customer profile inputs, HDFC Bank employs a combination of the Multiplier and FOIR methods to determine eligibility for the personal loan amount. The following are the significant features of Multipliers and FOIR that are used.
HDFC Bank has assigned multipliers to determine the loan amount an applicant is eligible to receive. The multipliers are applied based on the applicant’s net salary and company category.
Refer to the illustration below for multipliers applicable to a salary of ₹50,000 and above.
| Company Category | Multiplier |
| Category A | 30 |
| Category B | 25 |
| Category C | 20 |
| Category D | 12 |
HDFC Bank applies a higher multiplier to applicants with a monthly salary of ₹50,000 and above as per the illustration above. Therefore, an applicant employed by a Cat A company and earning a net income of ₹60,000 per month is eligible to receive a maximum loan amount of ₹18 lakhs (provided the other eligibility criteria are met), whereas an applicant earning ₹60,000 and working with a Cat C company can obtain a maximum of ₹12 lakhs.
The HDFC Bank multiplier applicable for an income of ₹30,000 to ₹49,999 is commensurate with the funds an applicant can spare after fulfilling the mandatory expenses. As illustrated below, a Category B employee with a net salary of ₹40,000 is issued a loan amount of ₹720,000. In contrast, a Category D employee with a similar salary will be issued a personal loan of ₹ 400,000 from HDFC Bank.
| Company Category | Multiplier |
| Category A | 20 |
| Category B | 18 |
| Category C | 15 |
| Category D | 10 |
The multipliers are applied based on the customer’s income and company category to calculate the amount that can be issued to the applicant. However, the multipliers are not the final decision-makers, but rather indicators that take into account the applicant’s profile. The next step is to verify the customer’s existing obligations, including the EMI for existing loans and credit card dues, as well as the EMI the customer can comfortably afford to pay.
Application of the FOIR (Fixed obligations versus the income received).
The FOIR is applied in a personal loan to determine the disposable income an applicant has available after covering the mandatory monthly expenses. HDFC Bank applies the FOIR by the following specifications.
The net salary of the applicant: The net income of an applicant will determine the ratio of spending on monthly expenses and the spare funds available for other personal expenses. For example, an applicant earning a net income of ₹50,000 per month is likely to have more spare income for purchasing the latest gadgets compared to an applicant earning ₹30,000 per month. Therefore, a higher FOIR is applied to applicants with higher incomes.
The Company category of the employer: Employees of companies listed in the A and B company categories of HDFC Bank are well-qualified and have secure jobs with promising prospects. They are expected to meet their obligations punctually and therefore receive a higher FOIR compared to applicants employed in companies categorised as Category C or D.
| Company Category | Net Income | FOIR |
| Category A | >₹ 50k | 70% |
| Category B | >₹ 50k | 70% |
| Category C | >₹ 50k | 60% |
| Category D | >₹ 50k | 50% |
| Category A | > ₹30k | 50% |
| Category B | > ₹30k | 50% |
| Category C | > ₹30k | 50% |
| Category D | > ₹30k | 50% |
Illustration of the calculation for a loan amount as per the HDFC Bank eligibility calculator, applying the multiplier and FOIR method.
Komal is an HR executive working for a private limited company listed as Category C in the HDFC Bank company category list. She earns a net salary of ₹70,000 and is seeking the maximum amount she can obtain as a personal loan. Let us examine her eligibility amount from HDFC Bank.
| Company | Net Salary | Multiplier | Eligibility | |
| CAT D | ₹ 70,000/- | 12 | ₹ 8.40 lakhs | |
| FOIR Applied | Can pay EMI | Tenure applicable | Eligibility | |
| 50% | 35000/- | 48 months | ₹16,80,000 |
According to the FOIR, Komal is eligible for a personal loan amount of ₹16,80,000 from HDFC Bank, but the multiplier for the company category restricts her to ₹8,40,000 as a personal loan. In similar circumstances, the multiplier will override the FOIR, and the loan amount issued to her will be restricted due to the category of the company with which the applicant is employed.
The customer may be earning a handsome salary, employed by an elite company, possess an acceptable CIBIL score, and be eligible for a maximum loan amount of ₹10 lakhs or more; however, the existing obligations, including EMI payments and credit card dues, are factored in before finalising the loan amount. The CIBIL report is verified for loans in progress and existing credit card dues. After applying the FOIR, the EMI payments are noted as per the CIBIL, as are the credit card dues. Depicted, as per the illustration below;
Dinesh Singh, an employee of a company featured as CAT B in the company category list, earns ₹45,000 per month. He has applied for a loan of ₹5 lakhs to renovate his home. He is currently paying an EMI of ₹ 6,000 per month for an auto loan. Let us verify if he is eligible for the required loan amount according to HDFC Bank’s eligibility criteria.
| Net Income | ₹45000/- |
| FOIR of 50% | ₹ 2250/- |
| Existing EMI | 6000/- |
| Eligible to pay an EMI of | 16500/- |
Thus, Dinesh qualifies for his Personal loan requirement of 5 lakhs under the following terms.
Using an EMI calculator to check the EMI with the input of the loan amount and tenure will help applicants to pre-check if they can comfortably afford the instalment.
Thus, the HDFC Bank has a clear and concise policy that enables the disbursal of personal loans with speed and efficiency. With the advent of digitalisation, HDFC Bank has created online mechanisms to facilitate speedy processing, helping eligible applicants apply for a personal loan and submit documentation online.
Although the HDFC Policy for calculating the personal loan amount that can be issued to an applicant is clearly defined, the decision rests with the credit team, who will speak to the customers and verify details to approve the personal loan. Ultimately, it is the comfort of the credit team in approving the loan amount required that matters.
If you require an increased personal loan from HDFC Bank, the following steps will assist you:
An applicant earning a monthly income of ₹30,000 and employed with a Category A company, with no other outstanding credit, can obtain a maximum loan amount of ₹6 lakhs with a repayment tenure of 48 to 60 months. If he is employed with a company listed in a lower category, this amount will be adjusted accordingly.
Loan seekers with an existing personal loan with HDFC Bank can apply for an additional loan amount when required as an HDFC Bank personal loan TOP-UP to the existing loan or as a secondary loan or parallel personal loan. The request is processed in accordance with HDFC Personal Loan norms.
HDFC does not process personal loans for applicants employed with private limited or partnership firms. A good option is to approach an NBFC that offers personal loans to private limited and proprietorship firms.
The message for a pre-approved personal loan reflected in the salary account is an indication that you have been maintaining your account with a good balance and regular credits. If you require the funds, your application will be processed following HDFC Bank’s regular personal loan process.
Government employees with a salary of ₹ 50 and above are included in Category A of the HDFC Bank-approved list. Applicants with an income of above ₹30,000 are treated as CAT B. The applicant’s grade is also considered when finalising the loan amount.
If you are a first-time loan seeker without a CIBIL score, you must fulfil the following norms.
A personal loan of ₹ 1 lakh and above is issued to applicants employed with companies included in the company category list of HDFC Bank, provided they have a net salary of ₹30,000 and above.
