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How Much Personal Loan Can I Get on ₹25000 Salary?
Posted on Friday, July 26th, 2024 | By IndusInd Bank
Securing a personal loan can help you in various ways. However, the amount you can borrow depends on your monthly income to a large extent. If you earn a salary of ₹25,000, you might wonder how much personal loan you can get. Understanding your loan eligibility based on your salary is crucial to plan your finances.
The exact loan amount you qualify for depends on various criteria. However, knowing the basics can help you make informed financial decisions. Let’s explore more.
How Much Loan Amount Can You Get on a ₹25,000 Salary?
The amount of personal loan depends on various factors. Banks usually consider many factors, and not just your income, to determine your loan eligibility based on salary.
Banks offer a personal loan amount that is 10-15 times your monthly income. So, for a personal loan with a ₹25,000 salary, the amount can range from ₹2.5 lakh to ₹3.25 lakh. The banks also prefer to lend an amount where the Equated Monthly Instalment (EMI) does not exceed 40-50% of your net monthly income. So, for instance, if your monthly income is ₹25,000, the EMI should ideally be around ₹10,000 to ₹12,500.
However, as mentioned earlier, this can vary. It is advisable to reach out to the bank through their customer support or other mediums to know how much personal loan you can get for a ₹25,000 salary.
Factors that Determine How Much Loan You Can Get
Banks look for a variety of factors to determine how much loan you can get. These factors include:
1. Income and Employment Stability
Banks prefer borrowers with a stable job and consistent income. If you have worked with the same company for a significant period, it boosts your loan eligibility. With self-employed individuals, banks may take an average of their monthly earnings to determine loan eligibility based on salary.
2. Credit Score
Your credit score is an important factor when determining your loan eligibility. A high credit score (usually 750 and above) means good creditworthiness. It increases your chances of securing a higher loan amount.
3. Existing Debts and Repayment Capacity
Banks also look at your debt-to-income ratio to ensure that you can manage additional debt. Existing loans or credit card dues affect your loan eligibility. Hence, it is advisable to clear existing debts or reduce them before applying for a new loan.
Banks may also ask for a few months’ bank statements to get an idea of how well you have met your past repayment schedule. Keeping your monthly obligations low can enhance your loan eligibility.
Using a Personal Loan Calculator to Know Your Loan Eligibility
You can also use a Personal Loan Calculator from IndusInd Bank to get an idea of the loan amount based on your salary. You can enter the loan amount mentioned previously (₹1.5 lakhs to ₹2.25 lakhs) and your preferred tenure. This way, you will get an EMI estimate.
You can adjust the loan amount and tenure until you reach the EMI mentioned previously (₹10,000 to ₹12,500) or an amount that fits your budget.
Also Read: How to Use Personal Loan for Career Development
Conclusion
Securing a personal loan for a ₹25,000 salary might be challenging. However, you can pay attention to other aspects of your financial profile to increase your eligibility. If rejected, evaluate the factors that led to it and work on those to improve your chances the next time.
Remember to borrow responsibly. Choose a loan amount and repayment plan that aligns with your financial situation.
Visit IndusInd Bank’s website to learn more about our online Personal Loan offerings and eligibility criteria. Apply now!
Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
