- How much personal loan do you need? You can borrow the desired loan if you meet the loan criteria
- Read the post and know about personal loan eligibility and the factors affecting the loan approval
A personal loan helps you meet your various financial needs. This loan is unsecured and you don’t require to pledge any asset as security for the borrowed amount. Since there’s no security involved in it, the loan approval depends on various factors such as your monthly income and credit score. A higher income aided with a good credit score ensures confidence amongst lenders that you can pay back your loan on time. Read the post and know how much you can borrow and what are the factors that can affect your loan sanction.
How Much Loan Can I Borrow and for What Duration Can it be Taken for?
You can borrow funds from INR 50,000 to 40,00,000 from the bank or NBFC based on your income. And the loan amount can be borrowed for 5 years duration in which you can pay the borrowed amount in EMIs. The personal loan amount can be used for varied financial needs. With a personal loan, you can manage your renovation of home, higher studies, foreign trips, medical emergencies, debt payments, etc.
The income of the applicant is necessary for the loan approval and the eligibility can vary based on the lender you choose. Check out the table below to know the personal loan you can get from different lenders in India.
|Bank||Minimum Monthly Income Required||Maximum Loan Amount|
|State Bank of India (SBI)||INR 15,000||INR 20 Lakh|
|HDFC Bank||INR 25,000 for HDFC customers and INR 50,000 for non-HDFC applicants||INR 12 Lakh|
|Axis Bank||INR 15,000||INR 15 Lakh|
|ICICI Bank||INR 25,000 for customers residing in Delhi or Mumbai|
INR 20,000 for applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata
And INR 17,500 for others
|INR 20 lakh|
|YES BANK||INR 25,000||INR 40 lakh|
|Fullerton India||INR 25,000 for Mumbai and Delhi applicants and INR 20,000 for others||INR 25 lakh|
|IDFC First Bank||INR 20,000||INR 40 lakh|
|IndusInd Bank||INR 25,000||INR 25 lakh|
|Kotak Mahindra Bank||INR 20,000||INR 20 lakh|
|RBL Bank||INR 25,000 for Mumbai and Delhi residents and INR 20,000 for others||INR 20 lakh|
Credit Score and Report
If you have borrowed a loan or credit card in the past then it is easy for the lender to know your creditworthiness. As they just access your credit score and know what is your capacity of payment. Your credit score and report are one of those parameters that help lenders decide whether to approve your loan application or not. Since you do not need security, the lender would make sure your credit score is at a good level.
A credit score ranges from 300 to 900, and if your score is equal or above 750, the lender will approve your loan and can offer you the desired amount. If your score falls below the required limit, you must check the credit report and find the reasons for it. The score could be low due to non-payment, due charges, or even technical errors. If the latest is the case, you can get the error corrected by filing a dispute with the credit bureau.
Your employment record is checked by the lender to know your records and stability in the current job. Because if the customer frequently changes the job without any valid reasons then it is difficult to rely on him/her for a personal loan. As the loan is unsecured, the lender seeks candidates having a regular source of income plus having a work experience of at least 2 years, the stability in your position at the current organization, and the company you work for. Any individual working in MNC, Corporate, private, or public sector companies can get a personal loan.
EMI & NMI Ratio
After checking your credit score, income and other factors, the bank will check your repayment capacity. This is done by the lender to know whether you can pay the EMI on time or not. For this, the bank takes into account your credit usage, monthly expenses, and current EMI payment if you have an existing loan. Debt obligations including the personal loan EMI you are about to service must not exceed 50%-60% of your net monthly income. However, the ratio shown here is an average one. The eventual ratio could differ.