The multiplier method in personal loan eligibility is a simple formula that some lenders use to determine how much money they are willing to lend to a borrower based on their income. It's a rough estimate and can vary from one lender to another, but it provides a quick way for lenders to assess whether a borrower's income is sufficient to cover the loan repayments.
The multiplier method typically involves multiplying the borrower's monthly or annual income by a specific factor or "multiplier" to arrive at the personal loan maximum amount they are eligible for. The multiplier is determined by the lender's internal policies and risk assessment criteria.