Finance Desk – Personal loans are a great way to get money for things like medical emergencies, buying something big, or even a vacation. If your monthly salary is ₹30,000, you might be wondering how much personal loan you can get. Let’s understand it.
What Do Banks Look at Before Giving You a Loan?
Your Monthly Salary: The more you earn, the bigger loan you can get. In this case, we’re looking at ₹30,000 per month.
Credit Score: This is a number that shows how well you have paid off loans or credit cards in the past. If your score is above 700, banks will trust you more and might give you a bigger loan.
Existing Debts: Banks want to know how much of your salary goes into paying existing loans or bills. If too much of your salary is already tied up, they may offer you a smaller loan.
Job Stability: Banks like to lend to people who have a steady job. They prefer if you’ve been in the same job for at least a year.
Your Age: Younger people may get longer loan tenures, which means more time to repay the loan in smaller installments.
How Much Loan Can You Get on ₹30,000 Salary?
Banks usually give personal loans based on your salary. A good estimate is that you can get around 20 to 30 times your monthly salary.
For a ₹30,000 salary, this means you might be able to get a loan amount between ₹3 lakhs and ₹6 lakhs, depending on your situation.
Example:
Loan Amount: Let’s say you get a loan of ₹5 lakhs.
EMI: If the interest rate is 12% and you choose a 5-year repayment period, your EMI (monthly payment) would be around ₹11,122.
Keep in mind that if you already have other loans to pay off, the bank might reduce the loan amount to make sure you can handle all the payments.
Things to Consider
Loan Tenure (Repayment Period): A longer repayment period will mean smaller monthly payments (EMIs), but you’ll pay more interest over time. A shorter period will have higher EMIs but less total interest.
Interest Rate: Interest rates for personal loans can range from 10% to 18%, depending on the bank and your credit score. Try to get a lower rate to save money.
Other Fees: Banks might also charge processing fees or penalties if you pay off the loan early. Make sure to ask about these extra costs.
Tips to Get a Bigger Loan
Improve Your Credit Score: Pay your bills and loans on time to improve your credit score. This will make banks more likely to give you a bigger loan.
Show Other Income: If you have any other income, like rent from a property, tell the bank. This can help increase the loan amount.
Apply with a Co-Applicant: If you apply for the loan with someone else, like your spouse or a parent, who also has a good credit score, you might be able to get a bigger loan.
Conclusion
If you earn ₹30,000 a month, you can likely get a personal loan between ₹3 lakhs and ₹6 lakhs, depending on things like your credit score, existing loans, and how steady your job is.
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