How Much Personal Loan I Can Get if My Salary is 25000?
A personal loan is a way to ensure that you have the money whenever you need it. These types of loans are easy to avail and are unsecured which means that the lender would not require you to submit any collateral as a security for this loan. It is one of the many reasons why these types of loans have high-interest rates as compared to other credits. Applying for a personal loan online is straightforward; you have to fill the personal loan application form and submit it with the required documents.
The amount of the money you get from a personal loan depends on many factors, but your monthly income and credit score are the main factors among them. The easiest way to check if you are eligible for a personal loan is by using a personal loan eligibility calculator. The main reason your income is an essential factor is that a lender wants to make sure that you are capable of paying EMIs every month on time.
Role of Monthly Income in Personal Loan
A personal loan is a loan which you can use for any purpose according to your need like medical treatments, travelling, home improvement and many more. There are many reasons why your monthly income is considered a crucial part of the loan process. Some of the significant factors that affect your chances of getting a personal loan are enlisted below:
The more your monthly salary is, the more will be the amount of loan you will be sanctioned.
There are different loan options and based on your salary, calculate the repayment amount and the tenure you want.
If the credit score is high, then the chances of getting low-interest rates will increase.
Another factor that increases the probability of getting a personal loan is that whether you have availed any loan before or not. The debt to income ratio is calculated, which is the debt you have versus the salary or income you earn. It helps to calculate the amount that will be sanctioned and will differ from lender to lender according to their policies.
How much amount can you get through a personal loan?
There is no standard income parameter that determines the amount of money you will be getting as a personal loan. There are a few things one should always keep in mind before applying:
You should contact the lender directly
Your credit score should always be above 750
The amount which you will be sanctioned will entirely depend on the lender. Lenders evaluate your monthly income and the potential growth before sanctioning any loan. You can know about their loan eligibility instantly with the help of personal loan eligibility calculator. Log on to the lender’s website and fill in the application form online. You can even submit any document physically.
To lower the risk of default the monthly EMI’s of the loan is kept 45% to 55% of your monthly income by lenders. For example, if your monthly salary is between Rs. 20,000 to Rs. 25,000 after all the deductions the loan EMI amount would not be higher than Rs. 12,500, which is 50% of your monthly income. It is done to ensure that you will be able to pay off the loan quickly without any difficulty. You can choose the loan tenure according to your ease which varies from 12 months to 60 months.
Conclusion:
If you require urgent money, then a personal loan is the best option you can avail. You can get a personal loan online, and the best part is minimum documentation is required for its sanction. The loan amount can as high as 30 times of your monthly income with the tenure and interest rates you are comfortable with. It is suggested to contact the lender directly before applying for a loan and keep your credit score above 750 for better chances of getting approved. You can contact multiple lenders to get the highest amount possible for a personal loan.
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