How much loan can I get on salary of 25000?

How much personal loan can I get for 25000 salary?

Personal loan is money taken for any use of one’s need. Now you can get a loan with a single click if you meet the personal loan eligibility criteria as prescribed by the financial institutions. If you are an existing customer of the bank and even if you are a new customer, the loan amount will be credited to your bank account within a few hours.

The main criteria for deciding the loan amount for a personal loan is your income and repayment capacity. The repayment capacity is assessed on the basis of your monthly income and current financial obligations.

The question that comes to my mind is that my salary is Rs 25000 and how much personal loan can I get?

You opt for a personal loan only when you need a lot of money and when your savings are not enough for your requirement.

Calculation of personal loan amount depends on the internal loan policies of the lender. However, the general criterion is that the minimum FOIR or fixed liability to income ratio should not exceed 40% to 50% of the income after considering the EMI for the proposed loan. The maximum loan amount that will be allowed will be generally 10 months of salary, and hence you will be able to get a personal loan of up to Rs.250000 on a salary of Rs.25000.

It is recommended to be aware of the EMI offered before applying for the loan. You can easily calculate EMI from the EMI calculator available on the official websites of the lenders.

Eligibility Criteria to get Personal Loan against 25000 Salary

Most of the financial institutions offer personal loans for both salaried and self-employed individuals. However, some banks offer loans only to salaried individuals.

The eligibility criteria for taking personal loan against 25000 salary are as follows:-

Criteria salaried self employed people
Age 21 years to 60 years 25 years to 65 years
Work experience Minimum 2 years work experience and minimum 6 months with current company Minimum 3 to 5 years in current business
relationship with lender at least 6 months minimum 12 months
residential status Indian citizens Indian resident
credit score 750 and above 750 and above
recruiter Government Organizations/Public Sector Undertakings/PSBs, MNCs and any reputed companies. Not Applicable

The stated eligibility criteria may differ from lender to lender. Lenders, at their discretion, may change the eligibility criteria based on the profile of the customer.

Document type description
application Application form duly filled with signed
photo identity proof Passport, Aadhar Card, Voter ID, PAN Card, Driving License (Any One)
Address proof Aadhar Card, Utility Bill, Voter ID Card, Driving License, Passport (Any One)
signature proof PAN, Passport, Bank Certificate (Any one)
age proof Passport, Birth Certificate, PAN Card, Voter ID, Aadhar Card (Any One)
income proof for salaried persons
  • Latest Salary Slip (3 Months)
  • Form 16 and ITR
  • Bank statement of salary account for the last 6 months.

For Self Employed Individuals/Professionals

  • Audited Financials with ITR along with Income Calculation for the last two years
  • Current account bank account details for the last one year

Personal loan interest rate 2022 of some banks in India

Given below is a comparative list of prevailing interest rates of best financial institutions in India for 2022.

bank name Rate of interest
Canara Bank From 10.20% to 13.30%
Bank Of Baroda 10.50% to 12.50%
Central Bank Of India 9.85% to 10.05%
Tata Capital 10.50% to 24%
Bajaj Finserv up from 12.99%
indusind bank over 11%
IDFC First Bank up from 10.49%
Bandhan Bank From 15.90% to 20.75%
HDFC bank 10.50% to 21%

Steps to avail personal loan with salary up to Rs 25,000

You need to consider the following before applying for Personal Loan on 25000 Salary.

Eligibility : You should mainly check the eligible amount as per your salary using EMI calculator. You must note that the EMI should not exceed 40% to 50% of your income after considering the proposed EMI. Check the eligibility keeping in mind the affordable EMI, and keep all these things in mind before proceeding for the approval process.

Credit Score: Create your credit report and check your credit score. The credit score must be between 700 to 750 to be eligible for the loan amount and get a good deal in terms of interest.

Interest Rate: Compare the current personal loan interest rate in the market as well as other charges and then get in touch with the lender who is offering the best deal.

Once all the above mentioned things are taken into consideration, apply for Personal Loan on 25000 Salary by filling the online application available on the official website of the seller.

  • Visit the official website of the lending bank.
  • Select ‘Personal Loan’ under the ‘Loan’ option.
  • Click on the ‘Apply Now’ button.
  • You will be directed for online personal loan application.
  • Input the required personal contact and income details and submit the application.
  • You may have to scan and upload the required documents.
  • In case of some lenders, the representative will contact you, pick up the required documents from your doorstep.
  • The loan application will be processed, and if approved, will be communicated to you via SMS or email.
  • Once the documents are approved, the loan amount will be credited to your account.

You can check the pre-approved personal loan by logging into the net banking where you have a salary account where you can get a personal loan for 25000 salary. If you are one of the select customers eligible for the loan, you can place a request by mentioning the loan amount and tenure, and the amount will be credited to your account within seconds.

Apart from this, you can also approach the nearest branch of the lender to apply for the loan through Loan Application along with the required documents.

How can I improve my personal loan eligibility?

To improve your personal loan eligibility of 25000 salary in India, you need to consider the following points.

Credit Score: Maintain a credit score of 750 and above by paying existing EMIs and credit card dues before the due date. A good score is like a certificate of financial character. It presents you as a responsible borrower. If you have a good credit score, you will be classified as a low-risk candidate, and the lender will offer a lower interest rate as well.

Avoid Multiple Enquiries: When looking for instant finance, you can do multiple inquiries with different lenders at once. Every time an inquiry is made, lenders will generate a credit report that will reflect your credit history. This will trap you as someone who is desperate for a loan and will not make a good impression as far as the lenders are concerned.

Pay off existing debts: Try to reduce your current obligations by paying off some debts. This will help in improving the loan-to-income ratio which, in turn, will improve your eligibility.

Declare all sources of income: Apart from your regular income, if you have any other source of income like rent, interest on deposits, dividends or any other income from investments, declare the sources to improve your eligibility.

Add a co-applicant: You can add a co-applicant with a good credit score and regular income to improve eligibility. The co-applicant can be a spouse, a parent or a child.

Frequently Asked Questions (FAQs)

Question: What are the criteria to calculate personal loan eligibility?

Ans: Personal loan eligibility depends on various factors like credit score, income, repayment capacity, type of employment and income stability.

Question: How much loan amount can be availed on salary of Rs 25000?

Answer: The loan amount is generally equal to 10 months salary. However, it may vary from lender to lender based on internal loan guidelines. The maximum amount you can get for Personal Loan on 25000 Salary is Rs 250000. This again depends on your income, repayment capacity and credit score. The higher the credit score, the lower the interest. With lower interest, the EMI will also be lower, and you will be able to get a higher loan amount.

Question: What are the different modes of repayment of personal loan?

Ans: There are different modes of repayment of personal loan:

  • Registration of Standing Instructions through NACH Mandate
  • Setting up of Auto-Pay through Net Banking
  • Transfer through NEFT or RTGS
  • post dated check
  • The above are the normal repayment modes. However, the repayment methods may differ from lender to lender.

Question: What is the credit score required to avail personal loan against salary of Rs 25000?

Answer: The required credit score should be 750 and above for availing personal loan on salary of Rs 25000.

Question: How does the credit score affect the ability to avail a personal loan?

Answer: A good credit score reflects your financial discipline and your commitment to pay off loans and credit card dues promptly. You will be treated as a responsible borrower, and the lender will be sure of your integrity and will offer you loan at a lower rate. This will reduce the cost of the loan as the EMI will be lower if the interest is low.

Question: Is it always necessary to go for the minimum EMI while applying for a personal loan?

Answer: The EMI option again depends on your repayment capacity. If your current liabilities are low and your loan income is low enough, you can opt for higher EMIs and shorten the tenure. This will reduce the cost of the loan. It is not mandatory to choose the minimum EMI. Minimum EMI is just a convenient option to increase your eligibility.

Q: Is paying off credit card dues with a personal loan a good option?

Answer: If you have opted for revolving credit for your credit card and have a habit of paying only the minimum amount on the due date, then the rate of interest on the outstanding amount is much higher as compared to the interest on personal loan. Hence it is highly recommended to avail a personal loan and pay off the credit card dues as you will have the option to consolidate all your credit card dues and pay with a personal loan to reduce the cost of the loan .

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