How much loan can I get on salary of 20000

20000 Salary Per Kitna Loan Mil Sakta Hai: If you want to take a personal loan, but you do not know how much money you can get. Salary you get 20,000 every month, so now the question is how much personal loan will be available on this salary.

In earlier times, when loan was required, one had to go to the bank branch and apply, now it depends on the bank whether your loan will be approved or not. You had to wait a long time, and most of the time your loan was not cleared. But in today’s time, there are many things like personal loan EMI calculator, credit score calculator which have made it easy to take a loan.

Now taking a personal loan takes less time, and also helps in taking a well-planned decision. Now such questions that how much salary can I get on 20000 salary can be answered.

How much loan can I get for 20000 salary?

Personal Loan Eligibility Calculator is a tool that helps an applicant to calculate the maximum personal loan amount that can be availed. It is linked to his repayment capacity. The financial institution does a comprehensive assessment of you and helps you find the amount through a personal loan eligibility checklist.

There can be two situations to find out the maximum personal loan for Rs 20,000 salary:-

  • Before you already have a loan going on.
  • Second, there is no previous loan and you are a first time borrower.

Let’s talk about the situation first

If you have an active loan and are paying EMIs on those loans, then 20,000 salary will be calculated using the FOIR method for the maximum personal loan amount. FOIR, the fixed liability to income ratio, is also known as the loan-income ratio.

To find out the maximum personal loan amount for which the applicant is eligible, the lender will deduct the total amount of the current EMI from the net monthly income, FOIR should be less than 50% of the in-hand salary. The lower the FOIR, the better as it indicates that the applicant has sufficient funds to meet the additional loan obligations.

Thus, if you have a monthly salary of Rs 20,000 and an ongoing EMI of around Rs 12,500, your loan application will be rejected. This is because the remaining salary will be used for day to day life, and thus the chances of defaulting on repayment of additional EMIs will be very high.

Generally, around 40% of the income after deducting the current EMI amount is the maximum amount of Personal Loan eligible for an applicant. For example, if your monthly salary is Rs 20,000 and the current EMI amount is Rs 5,000, your eligibility for a personal loan is Rs 3,60,000 (15,000 X 40% of 60 months).

Let’s talk about the second situation:-

The applicant has no current liabilities and is taking the loan for the first time.

The maximum amount of personal loan eligibility for applicants who are taking a loan for the first time and have no current liabilities is determined using the net monthly income method or the multiplier method.

Since the applicant does not have any other fixed monthly liabilities or ongoing EMIs to repay, the personal loan he is eligible for will be a multiple of his Net Monthly Income (NMI). The value of the multiplier applied will be between 27 to 30 times the NMI and depends on factors like credit score, occupation, work experience, age etc. Thus on a monthly salary of Rs 20,000, you can get Rs 5,40,000 to Rs 6,00,000 with a maximum repayment period of 60 months.

What will be the eligibility criteria to get personal loan against salary of 20,000?

The first thing that comes to mind while considering taking a personal loan is – How much personal loan can I get with a salary of 20000? Well, it all depends on fulfilling the eligibility conditions. Applicants who fulfill all the pre-check conditions are eligible for the maximum amount of personal loan.

Following are the eligibility criteria for availing personal loan:

General Requirements Terms and Limitations

Applicant’s age should be between 21- 65 years.

The age of the applicant helps in determining the maximum loan tenure as the personal loan must be repaid before the applicant retires.

Employment Status

Almost everyone including salaried, self-employed professionals and non-professionals, students, retired officers, etc. are eligible for a personal loan.

However, each category has different eligibility criteria for a personal loan.

Salaried individuals are most preferred because of their fixed income.

Work experience The applicant should have been working for at least 2-5 years, out of which the last year should be with the existing employer or in the same profession.
monthly income

Minimum monthly income should be Rs 15,000 for salaried individuals

Monthly income should be Rs 20,000 for self-employed individuals

Higher the monthly income, higher will be the personal loan eligibility.

credit score Minimum credit score of 600 is required for personal loan approval. A credit score that is equal to or above 750 can help them avail a personal loan on favorable terms and conditions.
loan-income ratio The loan-income ratio should be less than 50%. It shows the ratio between the total amount of ongoing liabilities and total income. It helps in evaluating the repayment capacity of the applicant.

What are the documents required to take a personal loan?

Documents required to get personal loan against salary of Rs 20,000

identity proof Address proof income proof


  • pan card

any one of the following

  • Aadhar card
  • Indian Passport
  • identity card
  • driving license

any one of the following

  • Aadhar card
  • Indian passport
  • voter id card
  • Utility bills (electricity, water, gas) not older than 2 months
  • driving license


  • 3 Months Salary Details
  • 3 months bank account statement showing salary credit
  • 2 year ITR copy

Self employed

  • Business 3 months bank account statement
  • 2 year ITR
  • 2 Year Balance Sheet and Profit and Loss Account Audited by CA

Best Personal Loan Interest Rates 2022 in India

Name of the lending bank or company Rate of interest processing fee
Best interest rate and charges for personal loan from bank
SB I 08.50% p.a. 1% of the loan amount or minimum Rs.1,000 and maximum of Rs.10,000 (GST extra)
IDFC First Bank 10.49% p.a. 3.5% of loan amount + GST
ICICI Bank 10.50% p.a. Up to 2.5% of the loan amount + GST
HDFC bank 10.50% p.a. Up to 2.5% of the loan amount + GST, subject to a maximum of Rs. 25,000 for salaried individuals
Yes Bank 13.99% p.a. Up to 2.5% of the loan amount + GST, minimum Rs. 999 + GST
Best Interest Rates and Charges for Personal Loan from NBFCs
Tata Capital 10.99% p.a. 2.75% of loan amount + GST
fullerton india 11.99% p.a. Between 0% to 6% of the loan amount
Bajaj Finance 13.00% p.a. Up to 4% of loan amount + GST
Indiabulls 13.99% p.a. 3% of loan amount + GST

How to take personal loan against salary of Rs 20,000

It is easy to take a loan against 20,000 salary, the methods involved are:-

Check Eligibility – Visit the official website of the lending company and check your loan eligibility using the Personal Loan Eligibility Calculator. You have to provide details about your age, occupation and income. The maximum loan eligibility amount will be visible immediately.

Select Loan Scheme – Once you are eligible for the loan, select the loan scheme. The maximum loan amount cannot exceed the eligibility limit. Pay attention to the loan tenure.

Submit Documents – List of required documents will appear on the screen. Upload the photo copy of the required documents and wait till the document verification process is completed.

Get Loan Approval and Disbursement – ​​After the document verification process is completed, your loan will be sanctioned. Loan disbursement is done within 24 hours.

How can I improve my eligibility for a personal loan?

Meeting the bank’s eligibility conditions ensures personal loan approval on favorable terms and conditions. Listed below are some of the ways in which you can improve your eligibility for a personal loan:

  • Maintain a good credit score – Pay off your existing loans and financial obligations on time. Any delay or default in repayment will significantly lower your credit score.
  • Do not apply for multiple loans at once – Applying for more than one loan at a time will result in the loan getting rejected, which will lead to a drop in the credit score.
  • Keep your documents ready – Check the list of documents required before applying for the loan. Make sure you have the required documents with you.
  • Include income from all sources – Personal loan eligibility is based on the repayment capacity of the applicant. For a higher loan amount, include income from all other sources while applying for a personal loan.
  • Apply with a co-applicant – Applying with a co-applicant with a good credit score can improve eligibility for personal loans in India.
  • Avail loan for shorter loan tenure – Opting for a shorter loan tenure increases the personal loan eligibility.
  • Apply for a lower principal amount – The chances of rejection are high if you apply for a really high value personal loan. Keep the principal amount low to improve your chances of loan eligibility.
  • Mortgage – Personal loans are unsecured loans, but by taking some pledge, the borrower can significantly improve the personal loan eligibility.
  • Choose the right bank – Different financial institutions have different sets of eligibility conditions. Thus, it is important to find a bank with eligibility conditions that you can meet. This will improve your chances of being eligible for a higher personal loan amount.

Frequently Asked Questions (FAQs)

How much loan can I get for 20 thousand salary?

If your loan is already running and you are giving 5000 loan with a salary of 20,000 then you will get loan up to 3.6 lakhs with a repayment period of 60 months.
If there is no current loan and you are a first time borrower, then you will get the loan with a repayment period of 60 months, with a monthly salary of Rs.

Can I get a personal loan with low credit score?

Banks generally accept credit scores of 750 and above. They offer the lowest interest rates to such applicants. However, there are some lending institutions that also offer loans to people with low credit scores.

What are the eligibility conditions for availing Personal Loan against Salary 20,000?

Eligibility Criteria for availing Personal Loan Against Salary 20,000
Age Between 21 – 65 Years
Employment Status – Salaried or Self-Employed
with the same employer for the last one year with 2 years of work experience
Credit score above 750
Loan-income ratio 50% fewer

How can I improve my personal loan eligibility?

To improve personal loan eligibility, one must keep the following points in mind:

Maintain a good credit score
Do not apply for multiple loans at once Keep
your documents ready
Include income from all sources
Apply with co-applicant
Get loan for a shorter loan tenure Apply for a
lower principal amount
If possible, offer a guarantor
Choose the right bank

How to get personal loan on salary of Rs 20,000?

Steps to take Personal Loan on Rs.20,000

Check Eligibility Select
Loan Scheme Submit
Documents Get
Loan Approval & Disbursement

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