There is a growing trend of people obtaining personal loans today. Personal loans are easily disbursed and don’t require any collateral. Apart from that, they can be used for any personal expenses such as home renovation, weddings, travel, medical expenses or to consolidate high-interest debts. Personal loans are especially favoured by salaried individuals who are looking to meet their financial needs.
But how much loan are we eligible for based on our salary?
In this article, we will explore the details of a personal loan based on salary, the minimum and maximum tenure of personal loans and the eligibility criteria for Shriram Personal Loan.
Key Highlights
- Shriram Finance offers personal loans up to ₹15 lakhs to salaried individuals. The entire process can be completed online.
- The loan amount depends on various factors, such as monthly income, credit score and employment history. The salary alone is not the deciding factor in this case.
- To be eligible for Shriram Personal Loan, the borrower must be between the ages of 21 and 60 and they must be either salaried employees or self-employed.
- You can apply easily for Shriram Personal Loan online. There is a simple three-step process for personal loan for salaried employees.
How Much Personal Loan Will I be Approved Based on My Salary?
The amount of personal loan based on salary depends on a number of factors, such as monthly income, credit score and employment history. Lending institutions usually use these factors to determine the borrower's creditworthiness and assess the risk involved in lending the money.
Personal loans offer flexibility in loan amounts, ranging from a few thousand to several lakhs of rupees. Shriram Finance, for instance, offers personal loans up to ₹15 lakhs to salaried individuals. You can easily apply for Shriram Personal Loan online to get the process started.
Now this amount is not fixed. The amount approved depends on the borrower’s eligibility and the lending institution's discretion. For instance, a borrower with a lower salary might even get approved for a higher loan amount than a borrower with a higher salary. This is because the lending institution considers other factors, along with the salary, before making a decision.
If the borrower with a higher salary has defaulted in the past or already has quite a high debt burden, then the lending institution will be apprehensive about disbursing a larger amount. On the other hand, if the borrower with a lower salary has demonstrated creditworthiness in the past and always pays their bills on time, the lending institution will be more open to the possibility of a higher loan amount.
What is the Minimum and Maximum Tenure for Shriram Personal Loan?
When it comes to a personal loan based on salary, it is very important to understand what the loan tenure range is like. The minimum and maximum tenure may vary depending on the lender and the loan amount. Shriram Finance offers personal loans with a tenure ranging from 12 to 60 months.
Now, there are pros and cons to every situation. A longer tenure may result in a lower EMI, but it also means paying more interest over the loan's duration. A shorter tenure means a higher EMI but also results in paying less interest.
The best practice is to pick a tenure for a personal loan for salaried employees that results in a comfortable EMI amount. After all, this is the amount that the borrower will have to pay every month. If the EMI is too high, then the borrower will struggle to make the payments.
Shriram Finance offers a personal loan EMI calculator to help plan out our finances in advance before applying for Shriram Personal Loan. You can check it out here.
Documents Required for Personal Loan Based on Salary
To apply for Shriram Personal Loan, the borrower needs to provide the following documents to the lending institution.
- Identity Proof: This includes documents such as a passport, driving licence, PAN card or Voter ID card.
- Address Proof: Documents such as a passport, driving licence or gas bill, along with the gas book.
- Other Documents: The income proof documents for the last 3 months, bank statements for the last 6 months and a cancelled cheque.
- Photographs: The borrower may be required to submit recent passport-size photographs.
Please keep in mind, however, that the documents required may vary depending on the borrower and the loan amount. In certain cases, the borrower may be asked to provide additional documents.
Personal Loan Eligibility Criteria
To be eligible for a personal loan based on salary, the borrower must meet certain criteria. The eligibility criteria for a personal loan may vary depending on the lending institution and the loan amount.
The eligibility criteria for Shriram Personal Loan are:
- Age: The minimum age requirement for a personal loan is 21 years and the maximum age limit is 60 years.
- Employment: The borrower must be a salaried employee working in a reputed organisation or self-employed with a consistent source of income.
Thus it is necessary to meet the eligibility criteria to increase the chances of personal loan approval. Lending institutions may also consider other factors, such as the borrower's debt-to-income ratio and existing loan obligations.
To conclude, a personal loan based on salary is a popular option for salaried individuals looking to meet their financial needs. These loans are easy to apply for; the entire process can be completed online within a span of minutes. Apart from that, there is also the fact that personal loans can be used for a variety of purposes ranging from a dream vacation to purchasing an expensive electronic gadget.
Shriram Finance offers personal loans up to ₹15 lakhs to salaried individuals, with a tenure ranging from 12 to 60 months. Check out the Shriram Personal Loan today!
FAQs
- How to calculate personal loan eligibility based on salary?
The easiest way to figure out personal loan eligibility based on salary is to get in touch with the lending institution. Shriram Finance has an easy application process. All the borrower has to do is to fill in their contact details and they receive a call back within hours from the customer support team.
Check out Shriram Personal Loan to get started.
- What is the maximum amount of personal loan can a salaried person get?
The maximum loan amount varies among different lending institutions. Shriram Finance offers a maximum personal loan amount of ₹15 lakhs to salaried employees.
- What is the interest rate of Shriram Personal Loan?
The interest rate for Shriram Personal Loan starts from 12%* p.a. Please note, however, that this amount varies from borrower to borrower.
For instance, a borrower with a low credit score might get a higher interest rate. In comparison, a borrower with a higher credit score could get a lower interest rate.
