If you're earning a monthly salary of ₹60,000, you may wonder, “How much personal loan can I get on a ₹60,000 salary?” In this article, we’ll cover the factors affecting your personal loan eligibility, the typical loan amounts offered by lenders, and practical tips to improve your chances of securing a higher loan.
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Factors Determining Loan Eligibility on a ₹60,000 Salary
While salary is a primary factor in determining loan eligibility, other important elements also come into play:
- Credit Score: This three-digit number reflects your creditworthiness. A score above 750 is considered excellent and increases the likelihood of loan approval at favorable interest rates. A lower credit score may still allow you to secure loans, but they could come with higher interest rates.
- Age: Most lenders require applicants to be between 21 and 60 years old. This range indicates financial stability, increasing your chances of loan approval.
- Employment Type: A steady income from a salaried job in a reputable company significantly improves your loan eligibility. Freelancers or self-employed individuals might face more scrutiny but can still secure emergency loans with proper income documentation.
- Employer's Reputation: Working for a well-established company enhances your eligibility. Lenders view employees of reputable organizations as less risky, increasing the chances of loan approval.
How Much Personal Loan Can You Get on a ₹60,000 Salary?
For a salary of ₹60,000, the loan amount typically ranges from ₹5.4 lakhs to ₹21 lakhs, depending on your overall financial profile and the lender's policies. Here's a breakdown:
- Minimum Loan Amount: With a ₹60,000 salary, most lenders would offer a minimum loan amount of around ₹5.4 lakhs, even if you have existing financial obligations.
- Maximum Loan Amount: With a good credit score, minimal debts, and a stable job, you could qualify for a loan up to ₹21 lakhs.
At Creditt+, we offer flexible loan options for self-employed individuals with a minimum monthly income of ₹20,000, designed to support your financial needs. You can easily apply for education loans and travel loans in minutes.
Loan Eligibility Calculation Methods
Lenders use different methods to calculate your personal loan eligibility. Understanding these can give you a better idea of how much you can borrow.
1. Multiplier Method
The Multiplier Method is a simple way to estimate loan eligibility. Lenders multiply your monthly salary by a multiplier, which usually ranges from 9 to 36. For a ₹60,000 salary:
- 9x multiplier: ₹60,000 x 9 = ₹5.4 lakhs
- 36x multiplier: ₹60,000 x 36 = ₹21.6 lakhs
So, based on this method, you could be eligible for a quick loan ranging from ₹5.4 lakhs to ₹21.6 lakhs, depending on other factors like your credit score and financial stability.
2. Fixed Obligation to Income Ratio (FOIR)
FOIR considers your fixed financial obligations, such as existing loan EMIs or rent payments. Lenders generally prefer a FOIR below 50%, meaning less than half of your income should be committed to fixed expenses.
For example: If your existing monthly obligations (EMIs, rent, etc.) amount to ₹20,000, lenders will consider the remaining ₹40,000 for new loan repayments. The fewer financial commitments you have, the more loans you can secure.
3. Debt-to-Income Ratio
The Debt-to-Income (DTI) Ratio compares your monthly debt payments to your monthly income. Ideally, this ratio should be below 30-40% for instant personal loans.
For a ₹60,000 salary:
A good DTI ratio would be below 40%, meaning your total debt obligations should not exceed ₹24,000 per month. A lower DTI ratio increases your chances of securing a larger loan.
Tips to Increase Your Loan Eligibility on a ₹60,000 Salary
Here are some actionable strategies to improve your loan eligibility:
- Reduce Existing Debts
Reducing your financial obligations, such as repaying outstanding loans or credit card dues, lowers your FOIR and DTI ratio, improving your eligibility for a higher loan amount.
- Choose a Longer Loan Tenure
Opting for a longer loan tenure reduces your monthly EMI, making it easier for lenders to approve your loan. However, keep in mind that a longer tenure may increase the total interest you pay over time.
- Add a Co-Applicant
If you apply with a co-applicant (such as a spouse or family member) who has a strong income or credit score, you could qualify for a larger loan. The lender will assess the combined income and credit profiles to determine loan eligibility.
- Show Additional Income
If you have additional sources of income, such as rental income or side businesses, provide documentation to support these earnings. This can increase your overall income and enhance your loan eligibility.
Conclusion
So, how much personal loan can you get on a ₹60,000 salary? Typically, you can qualify for a personal loan ranging from ₹5.4 lakhs to ₹21.6 lakhs, depending on your credit score, existing debts, and lender policies. By following the tips mentioned above, you can improve your eligibility and increase your chances of securing a higher loan amount.
At Creditt+, we offer flexible loan options for self-employed individuals with a minimum monthly income of ₹20,000, designed to support your financial needs.
