There isn't a specific formula to determine one's eligibility, as we consider multiple factors when deciding on the loan amount. Check out this article if you're looking for information on Personal Loans and the maximum loan amounts that NBFCs like us can grant based on your income.
Maximum Personal Loan Amount Limit in India
If you're wondering about the maximum loan amount you can avail in India, the answer is that it varies depending on the lender and the type of loan you are looking for. This is why it is important to note that the loan amount you are eligible for depends on your credit score, income, and other personal loan eligibility criteria.
To avail of a Personal Loan, you can start by researching the offers and comparing Personal loan interest rates, processing fees, and repayment tenures to find the best option. You can then apply for the loan by submitting the required documents. Once your Personal loan application is approved, you will receive the loan amount per the terms and conditions you and the lender agreed upon. Here is what we have in store for you.
If you're looking to get a Personal Loan in India, there are a few factors you need to consider. Lenders typically have specific requirements when it comes to age, income, occupation, and work experience. In this table, we've outlined some key factors that can impact your ability to get a Personal Loan in India.
Age
Income
Occupation
Work Experience
Loan Amount (in Rs)
Range of Interest Rate
23
Rs. 15,000/month
Front Office Executive
1 year
Rs 0.5 Lakh
8% - 10%
28
Rs. 35,000/month
Teacher
3 years
50,000 - 1.5 Lakh
10% - 12%
25
Rs. 40,000/month
Software Engineer
2 years
3-5 Lakh
9% - 11%
35
Rs. 60,000/month
Doctor
5 years
5 Lakh
8% - 10%
Note: The above table is for illustrative purposes only, and the actual loan amounts and interest rates may vary.
How Personal Loan Interest Amount is Determined?
Personal Loan interest can be calculated using the Flat Rate or Reducing Balance Method. Here's how each method works:
Flat Rate Method
Reducing Balance Method
Interest is calculated based on the original loan amount; it remains constant throughout the term.
The interest rate is applied to the remaining loan balance after each EMI payment.
EMI payments are fixed and include both principal and interest amounts.
EMI payments gradually decrease with the outstanding loan amount, and the interest amount decreases as well.
This method may result in a higher interest payout than the Reducing Balance Method.
This method is more commonly used and is more cost-effective for borrowers.
What Are The Various Payment Methods for a Personal Loan?
Different methods are available when it comes to repayment of a Personal Loan.
Payment Method
Brief Description
Electronic Clearance System or ECS
Automatic deduction from your bank account
Post-dated Cheques or PDCs
Issuing cheques with future dates for repayment
National Automated Clearing House (NACH)
Automated payment system for loan repayment
Debit mandate or standing instruction
Permitting the bank to deduct the EMI
Conclusion
Hope this article was helpful in guiding you through the process of obtaining a Personal Loan in India. Please note that the above information is a general guide and may vary from one lending institution to another and applicant to applicant. You should cross-check the details and be sure about various factors, such as credit score for Personal Loans, before applying. Our experts are always available to assist you with any queries or concerns.
FAQs
How much Personal Loan can I get if my salary is 50,000?
The maximum Personal Loan amount you can get with a salary of 50,000 depends on factors such as your credit score, existing debts, repayment capacity, etc. We can offer an instant loan of up to Rs 5 lakh with a repayment term of 60 months.
Can I get a Personal Loan for 15 years?
No, Personal Loans are unsecured and are generally offered for a shorter period. For example – the maximum limit of our Personal Loan tenure is five years.
What is the duration of a Personal Loan?
The borrowers of the highest Personal Loan amount usually prefer the most extended term. We at Hero FionCorp offer flexible repayment tenures of up to 60 months.
Katyaini is a finance expert with a focus on the non-banking financial sector, bringing over 8 years of experience in NBFC. She specializes in simplifying complex financial concepts for readers, helping them navigate the NBFC landscape. Outside of work, she is passionate about travelling.
