How Much Personal Loan Can I Get on Rs 20,000 Salary


Personal loans are popular unsecured loans due to their numerous perks such as flexible use options, a quick and easy application process, and minimal documentation requirements. You can apply for a quick loan online right away if you are employed and meet the other requirements.

Your eligibility for a personal loan is based on several factors such as your employment history, loan type, its term, your credit score, and the interest rate. Of all the eligibility criteria, your monthly income has the most effect on the result of your loan application. It is so because your income determines your repayment capacity.

What Personal Loan Amount Can I Get with a Rs 20,000 Salary in India?

A quick loan can be used for a variety of reasons such as debt consolidation, home renovation, emergency medical care, wedding, higher education, and luxury travel. When you take a personal loan from a money loan app, you are doing so because your funds are either insufficient to cover the costs for the reason at hand or you want to protect your investments and savings for the future. Whatever the case, the amount of your loan is sanctioned in large part depending on your income and credit rating.

You are qualified to apply for a personal loan worth Rs 50,000toRs 1.50 lakh if you earn a monthly salary of Rs 20,000.The prerequisites are:

  • To qualify for a personal loan from a money loan app, you must be between 21 and 58 years of age.
  • You must be an Indian citizen.
  • Your total minimum monthly income should be Rs 15,000.
  • Statement of salary for the past six months.

Your quick loan application is checked and assessed based on the eligibility requirements indicated above. However, the minimal Fixed Obligation to Income Ratio (FOIR) after accounting for the EMI of your present proposed loan should not exceed 40-50% of your net income, according to the standard requirements.

Fixed Obligation to Income Ratio (FOIR), for the uninitiated, refers to the proportion of your net monthly income to the fixed financial commitments you have such as credit card payments, costs, and other loan EMIs. You have a better chance of getting a quick personal loan approval if this ratio is satisfied and you meet the qualifying requirements.

How To Increase Your Chances of Getting a Personal Loan Approved?

To increase your eligibility and chances of receiving a fast personal loan approval, do the following:

  1. Declare All of Your Income: If you get a salary, your income from your employer is the most important source of income. If you do have additional sources of income such as rental income from real estate, dividend interest, interest from savings accounts, and others, you must fully disclose them. This raises your income and makes you more qualified for a personal loan from a money loan app.
  1. Avoid applying for many loans at once: When you apply for a quick loan, the lender will perform a hard inquiry, which is the process of checking your credit score. Numerous hard inquiries caused by simultaneous loan applications will lower your credit score. Always make sure to just apply to one lender at a time, wait for their response, and then decide what to do next.
  1. Add a Co-applicant: You can always include a co-applicant on your money loan application if you have a fair credit score or a low income. The co-applicant should be more financially stable than you are and have a better credit rating. You can co-apply with your partner, parent, or children.
  1. Repay existing loans and credits: As already mentioned, getting a personal loan is heavily influenced by your FOIR or debt-to-income ratio. It is usually advisable to pay off your current obligations before applying for any new loan to increase this ratio. This will lessen your current debts and increase your available income for paying the suggested loan EMIs.
  1. Enhance Your Credit Score: The credit score is a key aspect in determining the likelihood that you will be offered a quick loanat a competitive interest rate. Even while you can still apply for a personal loan with a low credit score, the interest rate that follows will be higher to account for the possibility of loan default. On the other hand, a score of 630 or above is regarded favourable for approving personal loans and qualifying for low-interest rates. Higher credit scores are associated with applicants who are viewed as low-risk borrowers and vice versa. Regularly check your credit score and ensure your credit record is error-free.


Every person has a right to make the best of the advantages of personal quick loans that are offered online. Personal loans are available to those with minimum monthly salaries of Rs 15,000–20,000 after quick online approval through cash lending apps. A person’s income and credit history will determine whether they qualify for a personal loan or not. Additionally, the lender may have a different loan amount and rate of interest.

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