Earning Rs 20,000 or More? How Much Personal Loan Can You Get?

Banks and other financial organizations offer personal loans to assist people to achieve their financial objectives, such as planning a dream wedding, going on an exotic vacation, or paying for unexpected medical costs. Though it’s simple to apply for a personal loan but getting the loan accepted and sanctioned can be difficult. Most borrowers frequently wonder, “How much personal loan am I eligible for?” Your monthly income and credit score are the two aspects that most lenders take a look at while reviewing your personal loan application. 

If you are applying for a personal loan for the first time, you should know that your monthly income is given more priority because it lets lenders understand your ability to repay the EMIs on time which helps to rule out the risk of default. You can find all the information you need regarding personal loans and the loan amounts that banks will authorize based on your earnings in the sections that follow.

How do personal loans work?

With the onset of personal loan apps and easy-to-access bajaj personal loan customer care number, they make sure you have the money you need when you need it. Personal loans are frequently used for things like weddings, education, vacation, and medical costs. Due to the unsecured nature of the personal loan, lenders do not require you to put up any collateral to secure the loan. However, prospective borrowers should know these unsecured loans have higher bajaj personal loan interest rates than secured loans.

How much money can I borrow personally?

Every person is concerned about the amount that the lender will approve before applying for a personal loan, especially if your salary is your main source of income. In this case, you are constantly bothered by questions like “What is the minimum salary for a Personal Loan?” or “What are the criteria for an individual having a low salary?” etc. Beyond the key issue of the lowest or maximum Personal Loan, one can qualify for, it’s essential to comprehend all the necessary eligibility requirements with the help of bajaj personal loan customer care number. The following are the primary requirements for eligibility for a personal loan:

  • The applicant must be between the age of 22 and 58.
  • A minimum of Rs. 20,000 should be the applicant’s income. 
  • According to business regulations, the candidate must be employed by a public or private company. 
  • Self-employed people had to have been in operation for at least five years.
  • Paid employees should have at least one year of experience and six months of current employment. 

If you don’t fit the aforementioned qualifying requirements, getting a personal loan can be challenging. For instance, suppose your monthly salary is Rs 18,000 which is below the minimum criteria that imply that obtaining a personal loan of less than 20,000 is difficult. Banks compute your eligibility for a personal loan using two different ways. These two techniques are the Fixed Obligation Income Ratio and the Multiplier approach and the information on this can be found on bajaj personal loan customer care number. 

Multiplier Method: The bank will ask you about your monthly revenue using this way. It then increases the sum by 27 and approves a loan with a 60-month term. You may be able to obtain a larger loan amount with a lower bajaj personal loan interest rates if your pay is higher and your employer has a solid reputation. The bank may choose a greater multiplier in this case. Your monthly income is subtracted from your debts, then your debts are multiplied by 27.

Fixed Obligation Income Ratio: Your financial commitments will determine how much of a loan you are eligible for under this approach. Before deciding on the loan amount to issue, the lender looks at your bank statements to understand your monthly expenses. These monthly costs include things like rent and EMIs. Lenders typically consider 50% to 75% of the net income as instalment payments. If you have greater expenses than this proportion, the lender will either lengthen the loan’s term or reduce the amount that is sanctioned.

Factors Affecting Your Personal Loan Eligibility

Personal loans do not require any form of collateral. As a result, banks must depend only on the borrower’s reputation to assess his or her eligibility. The following are some elements that are crucial in determining a person’s believability.

1. Monthly salary The applicant’s monthly income is one of the most important elements that lenders take into account before approving a Personal Loan application. As we learned above, it can be

challenging to get a personal loan if your salary is less than Rs. 20,000 or equal to Rs. 20,000; therefore, having a greater salary would be advantageous. That is not the only requirement, and having an income above Rs. 20,000 does not ensure loan approval and even if it does, the bajaj personal loan interest rates will be on the higher end. Lenders also consider your debt-to-income ratio.

2. Credit rating: Every person receives a three-digit credit score from a credit information provider like CIBIL. This rating ranges from 300 to 900. It makes you more credible in the lender’s eyes. Your historical loan repayments, bill and credit card payments, among other factors, are taken into account when calculating your credit score. Your chances of obtaining a loan authorized will rise if you have been paying all of your bills on time and have a high credit score. 

3. Age: The applicant’s age is also extremely significant. Depending on the lender, borrowers should be between the ages of 22 and 58 for loans to be approved. Applying for a loan at or close to retirement age can be problematic.

4. Employment status: When choosing whether to approve or deny your loan application, lenders take into account your work situation. They evaluate the standing of the business you work for. You may be eligible for a loan with a greater loan amount if you work for the government or a large firm. Your overall employment history with the organization is also important. When submitting your application, if you have been employed by the organization for more than a year, the


After taking into account your income, spending, and credit score, lenders may approve you for a personal loan. Banks assess the number of personal loans you can acquire using two different approaches. If your current salary is not enough to avail of a personal loan or pay higher bajaj personal loan interest rates, get in touch with bajaj personal loan customer care number for further negotiation. If you are employed in a government office, your chances of approving a personal loan application are on the higher end. Lastly, it is recommended to get in touch with the bank officials for the right course of action owing to your current situation. 

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