If you receive a salary of ₹30,000 a month and are planning to avail a personal loan, you are not alone in doing so. Most salaried people belonging to this income group tend to take out a loan for medical bills, education fees, weddings, home improvements, or consolidation of loans. Banks and other financial companies are willing to lend money to individuals in this bracket, but what you can borrow will be determined by a variety of factors. This detailed guide will explain how much personal loan you can borrow on a salary of ₹30,000, and give advice on improving your loan approval chances. Investigating the Conditions for Borrowing a Personal Loan.
Personal loans are not secured, i.e., they do not involve any collateral. Due to this, the lenders check several things to establish whether you are in a position to repay the loan or not. Your salary is one of the most important things. The lenders usually expect your EMIs (equated monthly installments) should not be more than 40-50% of your salary per month.
Given a salary of ₹30,000 a month, the most convenient emi you can get would be between ₹12,000 and ₹15,000. This means that banks check your loan eligibility. There are a few things that can affect your decision. These include your credit rating, the stability of your job, your age, any loans outstanding, and your current employer.
₹30,000 loan amount on monthly salary
Assuming there are no outstanding dues, with an emi of around ₹12,000, and a tenure of 3 to 5 years, you can qualify for a personal loan of between ₹2 and ₹4 lakhs. But this is an approximate figure and the actual amount could differ depending on the rate of interest and the policy of the lender.
For example, if the interest rate is 12% annually and you choose a 5-year duration, the calculation would be as follows:
You can avail a loan of approximately ₹3.5 to ₹4 lakhs.
Shorter tenures for the loan will mean a lesser total loan amount, as the monthly repayment amount would be more.
Aspects that determine your loan eligibility
A credit score of above 700 is usually considered to be in good condition. Being higher on the credit score bar makes lenders more confident in your repayment capability, leading to a bigger loan amount.
Job stability: the lender is interested in candidates with stable jobs. Working with your current company for a period of at least 1-2 years enhances your credit profile.
If you have any current loan or credit card with large outstanding balances, this decreases the highest personal loan amount that you qualify for.
Having a stable and established employer provides the employee with a better credibility and reputation, making them less risky in the eyes of lenders, thus raising the chances of loan approval.
Smaller borrowers have a longer period of time in front of them to earn, so the lender can give them extended loan repayment tenures.
Improvement Tips for Your Loan Application
Keep your credit score healthy by paying your credit card dues on time and settling any pending loans.
Pay off outstanding commitments before taking a new loan
Take a longer tenure, which lowers the EMI per month and increases eligibility.
Think about adding a co-applicant, like a spouse or parent with a steady income, to improve your prospects of getting a bigger loan and possibly qualifying for more favorable terms.
What to expect from lenders.
Different financial institutions have different risk estimation models. Some lenders online can approve loans of up to ₹5 lakhs on a salary of ₹30,000, provided you have a good credit score and fulfill other requirements. Even though traditional banks would be more conservative, they could limit the loan amount to about ₹2.5 to ₹3 lakhs for first-time borrowers.
It is also important to look at interest rates, processing charges, and other fees. There are lenders who will hurry through the approval process but with increased interest rates, and some will offer better conditions with a bit more documentation.
Documents you’ll need
Id proof (aadhaar card, pan card, passport, etc.)
Provide Evidence
Last 3–6 months’ pay stubs
Last 6 months’ bank statements
Job offer letter or certificate of employment
Thoughts on Our Outcome
With a salary of ₹30,000 per month, you can easily be eligible for a personal loan provided you have a clean credit track record and reasonable expenditure.
Although the highest eligible amount might not be as large as that for higher income segments, it tends to be enough to help those with moderate requirements fulfill their financial requirements. It is best to borrow only the amount you can easily afford and ensure that it will not affect your regular expenses or savings. As a precaution, perform an emi calculator to arrive at the estimated monthly payments needed and prepare accordingly. Spend time in doing thorough research and comparisons among various loan facilities, ensuring that you select the one that offers the best terms and conditions. By adopting a good plan, despite earning a salary of ₹30,000, you can find the money you require without affecting your financial security.