How much personal loan can i get on my salary?

Thanks to the extensive advertisements done by financial companies, it’s a well-known fact that the Personal loan is the go-to solution in case of a financial crisis. Unlike a home or a vehicle loan, instant personal loans can be used to meet any kind of financial needs. The picture is quite rosy, however, there is still a question in every salaried person’s mind- How much personal loan can I get on my salary?

Well, if you want to know "how much personal loan you can get on your salary", the question will depend on your income and your monthly debt obligations. The salary is one of the most important factors that determines if you do get the loan or not. Personal loans are unsecured loans which simply put means that there is no need to pledge any kind of valuable with the financial company. These loans are given out, mainly by checking your repayment capacity based on your salary and employment history. The instant personal loan which falls in the high-risk category calls for stringent eligibility criteria from traditional banks and NBFCs.

The minimum salary requirement is varied. If you are in a metropolitan city like Delhi or Mumbai, a minimum salary of Rs. 30,000 or more is the norm. While for a non-metropolitan city, a lesser take home amount too is considered.  So, the question of - How much personal loan can I get on my salary? is also dependent on the city where you reside and work. Fintech companies cater to the group that falls just below the criteria of a traditional bank. For example, if your minimum take home is Rs.20, 000 you are still eligible for an instant personal loan with Qbera.

There are other criteria too that contribute to the approval of the loan application. Banks and NBFCs now have a database of companies and the employees of such companies have higher chances of approval. This also translates to the fact that your application may be rejected simply because the company you work for is not in their database. Qbera has a large database of more than 7 lakh companies, so the probability of your loan being approved is high.

Your CIBIL score too is very important. Banks consider a score of 750 and above to approve your instant cash loan. However, a score of 575 is also considered by Fintech companies. The secret being the advanced risk calculation algorithms that use socio-economic data and your saving habits. Fintech companies are not completely dependent on your CIBIL score. The age of the person is another factor. If you are 23 years of age, you are young and can manage a longer tenure for your personal loan. So there are high chances of your loan being approved in comparison to a person who is nearing 60 years of age. Qbera ideally looks at the age group of 23-55 years of age.

You also need to provide financial institutions with Aadhar card, PAN card, proof of income, salary slips and bank statements so keep them handy while applying for a personal loan.