Personal loan eligibility: Know how much you can borrow based on salary

While personal loans help with urgent needs, they have high interest rates. Banks set loan limits based on factors like income, credit score, and existing debts. The loan amount varies depending on your monthly salary.

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Helpful Personal Loans

Market experts say that since personal loans are easily accessible after gold loans, many salaried individuals are trying to get them. In the current situation, when we need money, we usually think of a personal loan. Personal loans are an immediate solution for urgent home needs, medical expenses, wedding arrangements, and children's education expenses. Banks provide loans quickly to monthly salary earners after submitting their salary receipts and some inquiries.

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Personal Loans for Emergencies

Banks are more likely to provide personal loans to salaried employees. Since it's an unsecured loan, no collateral is required. However, the interest rate can range from 12% to 24%. Due to the higher interest rates compared to other loans, people avoid taking personal loans even during financial difficulties.

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Bank Loan Limits

Different banks set different loan limits. For example, Axis Bank offers personal loans up to Rs 40 lakh, while ICICI Bank offers up to Rs 50 lakh. However, some banks like PNB and BOI only allow up to Rs 25 lakh. Many banks have set an upper limit, offering loans between Rs 20 lakh and Rs 40 lakh. Banks determine the loan limit based on the borrower's repayment capacity.

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Key Factors Determining Loan Amount

Higher personal loans are offered to those with higher incomes. Similarly, those with a good credit score (above 750) are more likely to receive a larger amount. Your existing loans can reduce your new loan limit. For example, if you have a Rs 5 lakh loan and are eligible for a new loan of up to Rs 17 lakh, you will only receive Rs 12 lakh.

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Essentials for Getting a Personal Loan

When taking a personal loan, consider your income, repayment capacity, and credit score to choose the best bank. If you want a higher loan amount, increasing your monthly income and improving your credit score is important. Be aware of the banks' new interest rates and make EMI calculations beforehand. Choose the best loan solution for your needs! Finally, remember that planning according to your needs, managing your finances, and having the ability to repay the loan is crucial.

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Loan Amount Based on Salary

Some banks offer personal loans up to 20 times your monthly salary. For example, if your monthly income is Rs 1 lakh, you can get a loan of up to Rs 20 lakh. Similarly, financial advisors say that someone earning a monthly salary of Rs 25,000 can get a personal loan of up to Rs 5 lakh.

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Personal Loan Table

This table shows the loan amounts you can get based on your monthly income.