It is a boon to loan seekers that availing personal loans has become easier and more convenient than ever before. However, several potential borrowers often find themselves wondering if they can secure their ideal loan amounts on the basis of their current income. So if you have a salary in the range of Rs 25,000, here is what you need to know about the loan amount you can secure on the basis of your income.
Personal Loan for 25,000 Salary
Firstly, it is important to note that no two lenders are exactly alike which is why the loan products offered by each as well as their accompanying policies are bound to be different. However, what remains common across the board is that lenders look at a number of criteria in order to appropriately determine the personal loan amount for a borrower.
One of these criteria is a person’s monthly salary. A person’s salary can be a fair indicator of their scope of borrowing and repayment capacity. In addition, the regularity of a person’s salary also informs lenders of his or her financial stability. While there is no standard income that serves as a parameter, a monthly salary of Rs 25,000 does meet the criteria for most lenders.
On average, a person with the salary of Rs 25,000 may be eligible for a personal loan of up to Rs 2.5 lakhs. This figure can vary as per the lender’s policies. To repay a loan of this size, the borrower should set aside up to 40-50% of his or her monthly income with a maximum EMI of about Rs 12,500. To determine the right EMI amount for you, consider using a Personal Loan EMI calculator online.
Other Factors that Affect Loan Amount
While your monthly salary certainly plays a part, there are various factors that are considered by lenders to assess your personal loan eligibility and loan amount. Here are a few of them:
- Credit Scores – In the absence of a collateral, lenders rely on credit scores to judge the creditworthiness of a potential borrower. It is recommended to keep a credit score of 750 or above to improve your chances of receiving your desired loan amount.
- Existing Debt –A borrower with multiple existing financial obligations might have a harder time making regular payments towards his or her personal loan. Hence, the current liabilities of an individual also determine the loan amount approved by a lender.
- Eligibility Criteria – Before starting off the loan application process, a borrower must ensure that he or she meets the basic personal loan eligibility criteria set by the lender. A loan amount can be disbursed only when the applicant fulfills these criteria related to income, citizenship and age.
You can make your personal loan application process easier by determining your ideal EMI amount beforehand. To that end, you can utilize a simple personal loan EMI calculator, a user-friendly digital tool that is easily available online. Simply enter the applicable figures in the given fields and based on the entered date, the personal loan EMI calculator will generate your ideal EMI amount.