A personal loan is considered a viable financial option that can provide individuals with a lump sum amount with greater transparency. It is an unsecured loan preferred by most individuals to meet their personal needs. Renowned non-banking financial companies (NBFCs) facilitate individuals with easy personal loans of up to Rs. 25 lacks. Personal loans can be availed easily by salaried employees because of their income certainty. With personal loan apps like InstaLoan App, getting a personal loan is much easier. Funds become available on the same day after personal loan approval.
How Much Personal Loan Can One Get On A Salary of Rs. 25000?
Lenders use two methods to calculate the loan amount offered to an applicant. Both have been discussed below:
- Multiplier Method
Lenders generally multiply the applicant’s monthly income by 27 to determine the loan amount. The borrower’s existing obligations are deducted from his monthly income, after which the remaining amount is multiplied by 27. The loan tenure can be 60 months. The higher the monthly salary, the higher the multiplier which ultimately results in a high loan amount.
If one wants a personal loan on a salary of Rs. 25,000 per month and there is no financial obligation, the expected personal loan amount offered can be 6.75 lakhs for 60 months.
- Fixed Obligation Income Ratio
Here the loan amount changes with the applicant’s financial obligations. Lenders go through the borrower’s bank statements to know about the monthly expenses they incur. These include rent and EMIs (Equated Monthly Instalments). They then decide on the loan amount based on the maximum EMIs one can honor.
Suppose the borrower’s monthly income is Rs. 25,000, and their existing loan EMI (financial obligation) is Rs. 3000. In this case, the expected credit offered can be Rs. 6.23 lakh for 60 months.
Loan Amounts Vary With Different Lenders
Maximizing the loan amount is a matter of qualifying the lender’s eligibility criteria. Lending institutions consider many key aspects while offering credit to individuals. These include age, income, experience, employer, job profile, and credit score.
There are standard parameters to offer credit to individuals. Below are the common eligibility parameters set by lending institutions to offer the required credit to customers.
-Employment Nature: A personal loan applicant should work in a private or public corporation. A government employee can enjoy preferential interest rates as per the lender’s policy.
-Age: The age limit is 21 to 60 years for salaried employees. When an individual is near retirement, the loan amount will be lower.
-Monthly Income: The minimum monthly income requirement is Rs. 25,000 for Mumbai and Delhi residents. For other cities, applicants with an income of Rs. 20,000 are eligible for a personal loan. Most lenders prefer to offer a loan amount with a maximum EMI of 60-70% of a borrower’s net monthly income.
-Work Experience: The lender may ask the borrower for a minimum work experience of 1 year with 6 months of work experience in the current company.
-Credit Score: The range for acceptable credit score depends on the lender. Most lenders need a good credit score of 750+ which indicates that the borrower possesses a clean credit history without any default on previous credits.
Different lenders may offer different loan amounts to salaried employees as per their current financial standing and repayment ability.
How to Check Personal Loan Eligibility
An online personal loan eligibility calculator helps borrowers to determine the loan amount a lender can offer, depending on their income and repayment capacity. The tool needs users to enter their monthly income, expenses, age, and city for easy personal loan eligibility.
What Are The Documents Required for Online Personal Loan?
– Duly filled online application form
– Identity Proof – Aadhaar Card, PAN Card, or Government ID for government employees.
– Address Proof – Aadhaar Card, Voter ID, Passport, or Driving Licence.
– Income Proof – Salary slips for the last three months or bank statements for the last six months.
The Closing
Understanding is the key to address financial needs and get credit smartly. Individuals should know the factors influencing their loan eligibility. Meeting the standard parameters of loan eligibility can help interested borrowers avail of a high loan amount at attractive interest rates, starting at as low as 11.99%.
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