We already know that lending companies base their approved loan amount on the monthly income of the individual. Higher the salary, better it is from the borrowing perspective. Always tie your credit score and personal loan requirement together. This will not only keep your credibility high in the market but also increase your market position.
Personal loans can be one of the best ways to have money whenever the need befalls. The right source and right time are the two most important dimensions to have a qualified personal loan. Personal loans are insecure and do not require collateral for security. This saves individuals from risking their valuable resources. One of the reasons why a high rate of interest is levied on personal loans compared to the secured ones.
So, what determines the amount of personal loan on Rs. 60,000 salary?
Application of a personal loan is quite easy, however approval and sanction are daunting. What you are actually approved as personal loan depends on a variety of factors- monthly income, credit score, past borrowings, market image etc. This is done entirely to be double checked about the prospect individual and his capabilities and capacities. Here, income plays a significant role, it helps to assess the individual’s payback ability. This also helps to eliminate the risk of default.
It is also sensible to discuss other factors that contribute towards approval of a personal loan. Income, being the vital most factor, has other dimensions reinforcing it!
Some of them are as follows: - Higher your income, better are your loan avenues - Increased flexibility of the loan tenure - Competitive rates of interest
Another significant factor would be whether the individual has applied to banks and NBFCs in the past or not. And if at all, he/she has he been approved too, then it makes a big impact!
How Much Personal Loan Will Be Approved on a Certain Salary?
Like mentioned earlier, there’s no set benchmark to gauge your eligibility for a personal loan, however, this helps to know whether you’ve defaulted in the past or kept clean. And also, how many existing personal loans are heavy in your pocket.
Let’s center our focus towards the below marked points: - Connect directly with your preferred lender - Build your credit score at 700 or over
The lending institution decides on the maximum threshold of your personal loan. The upper value for a personal loan is close to 25 lakhs for an individual. The lending institutions scrutinize your monthly salary and reach a conclusion. Mostly, individuals can be eligible for an amount which is upto 30 times of your monthly income.
And to avoid default risks, lenders keep their EMI to about 40-60% of their monthly income.
For eg, if your monthly income is amount 100,000, then it’s possible for the lender to choose an EMI amount of Rs. 50,000 which is 50% of the monthly salary.
A soft disclaimer for interested borrowers would be that while a good credit score and history is important, any past default can equally damage your personal loan requests!
Comments