Personal loans often come with a basic solution to many financial needs, from consolidating debt to funding a dream vacation, it is a solution which many opt for when required. However, the amount you can borrow is mostly based on various factors, including your salary which plays a crucial role.
In this blog, we will go in depth and understand the reasons behind personal loan eligibility criteria and highlight the criteria by which lenders can take a loan, considering their salaries. So, let's understand the main question: how much personal loan can I get on my salary?
Understanding personal loan limits based on your salary
Knowing the maximum loan amount that you can get based on your monthly or annual salary is usually based on several factors, which also include and vary from bank to bank. Before moving ahead with the loan, it is important to explore different bank options.
For instance, Kotak811 extends personal loans ranging from Rs.50,000 to a substantial Rs. 40 lakh, which focuses on several diversified needs like weddings, home renovations, emergencies, and more.
To know about your personal loan eligibility, you can use a personal loan calculator on the bank's website. Using this calculator, you will have an idea about your interest payment as per plan, in every month. However, before planning your calculations, you should be aware of the factors that banks usually consider such as:
Credit Score
If you have a high credit score, it makes your loan application appealing and easier to approve, and you have chances to acquire a higher amount of loan.
Income
Lenders evaluate your monthly income to know if you are capable of making the repayment. Higher incomes typically result in large loan approval with better tenure of repayment.
Age and work experience
A stable job history and sufficient work experience, especially for young professionals or entrepreneurs, demonstrate the capacity to repay, influencing the loan amount.
Current liabilities
Existing financial obligations and debts directly impact the loan amount you qualify for. It's essential to count your current liabilities and know your borrowing capacity accurately.
Must Read: What is a Salary Account? Know its Features and Benefits
Determining loan amounts considering monthly salary:
When considering a personal loan, you will have an impact on your salary, eligible for your loan. This crucial factor helps lenders to know about their ability to repay the loan amount along with interest in a given time frame.
Let us see the expected loan amounts aligning with the different salary brackets:
- For a monthly salary of Rs.8,000, you can have a loan amount of Rs.1.90 Lakhs.
- With a monthly salary of Rs.12,000, your loan can be approved up to Rs.2.80 Lakhs.
- With an earning of Rs.15,000 monthly may qualify for a loan equivalent to Rs.3.34 Lakhs.
- A monthly salary of Rs.20,000, will lead you to have an amount of approximately Rs.4.72 Lakhs as loan.
- Individuals earning Rs.25,000 per month might secure a loan of up to Rs.5.90 Lakhs.
- And for people who make Rs.30,000 a month, the eligible loan amount could reach Rs.7.09 Lakhs.
When considering a personal loan from Kotak811, there will be an annual interest rate of 10.99%. With this loan, you need to pay certain charges and application fees along with bounced payments, stamp duty, and more.
However, it is important to note that these charges can vary between so it is necessary to check the loan interest rate and other details.
Personal loan eligibility: Criteria for salaried individuals
Securing personal loans is important and comes with specific criteria which is customised to ensure financial responsibility and repayment capability. To be eligible for this loan, you need to fulfil the needs and criteria for the same:
Age requirement
To be eligible for the loan, one should be between the age of 21 to 58 years old, as this ensures they are mature and can have the ability to be mature to repay their loans.
Employment status
Eligibility extends to individuals who hold employment by public limited companies, multinational corporations (MNCs), or private limited companies which shows they have stable income.
Minimum income criteria
- Kotak Bank Salary Account Holders: A minimum net monthly income of Rs.25,000 is mandated, indicating the capacity to handle loan repayments.
- Non-Kotak Bank Salary Account Holders: A minimum net monthly income of Rs.30,000 is required, underscoring financial stability and repayment potential.
- Kotak Bank Employees: A minimum net monthly income of Rs.20,000 is stipulated, ensuring affordability within the bank's employment framework.
Educational qualifications and work experience
Applicants are necessary to have a graduation degree and should have one year of experience demonstrating the necessary competence and stability for loan commitments.
Must Read: What Is Personal Loan & How It Works?
Documentation requirements for personal loan applications
By abiding by these eligibility criteria, individuals can ascertain their suitability for a personal loan and have the potential loan amount they are eligible for the same with the qualifications.
When it comes to applying for a personal loan, it is important to have all the necessary documents. Whether you're a new applicant or a returning customer, it is important to be aware of all the documents you need to submit.
For loans up to Rs.5 Lakh, you are required to have an Aadhaar card, PAN card, and the last three months' bank statements from your salary account. However, if you need to have a large loan amount, preferably up to Rs. 40 lakh, there are additional documents that will be needed.
This typically includes a copy of a valid identity proof, residential proof, your latest three months' salary slips (if you're employed), or bank statements (if you're self-employed).
Along with this, you need a couple of passport size photographs. These documents play a crucial role in the loan application process, ensuring a smooth and efficient experience for borrowers.
Conclusion
The maximum personal loan amount tied to your salary is based on several factors including income, eligibility criteria, and documentation. Personal loans cater to diverse needs, from debt issues to fulfilling aspirations.
Utilising tools like loan calculators aids in understanding eligibility and repayment terms. Adhering to documentation requirements expedites the application process, ensuring timely loan approval.
Armed with knowledge about interest rates and associated charges, borrowers can get through the borrowing journey adeptly.
By aligning personal loan dynamics with financial objectives, individuals can responsibly leverage this resource to address their needs effectively.
Popular Searches on Kotak811
Kotak811 Insights | Super Savings Account | Credit Card Against FD | Apply for Image Debit Card | ActivMoney Savings Account | Apply for Savings Account Online | Savings Account Fees and Charges | Apply for Current Account Online | Kotak 811 | Check Your CIBIL Score | UPI Payments App | Online Dormant Account Activation | Online Zero Balance Account Opening | Apply for Personal Loan
This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Share