New Delhi, May 30 -- When you are applying for a personal loan, the amount that you want to borrow will be high on the priority list. While the quantum of the loan depends on the financial requirement of the borrower and therefore varies with each person, lenders follow a clearly stipulated formula before disbursing the amount.

Several leading banks offer personal loans of Rs.40-50 lakh with one lender even providing Rs.1 crore for eligible borrowers. But most lenders provide personal loans on the basis of the net monthly income (NMI) of the borrower. NMI is calculated after deducting existing loan obligations from the salary/income of the borrower.

Here is a guide on the maximum amount a person can avail as a personal loan, the importa...