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How much Personal Loan Can I Get on Rs. 30,000 Salary in India?

Updated on: 24 Feb 2022 // 40 min read // Personal Loans
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How much Personal Loan Can I Get on Rs. 30,000 Salary in India?

You enjoy a stable job and receive a monthly salary of Rs. 30,000. But urgent and unexpected financial shortfalls can disturb your entire budget. Although these shortcomings are best handled through a personal loan, ‘how much personal loan can I get on Rs 30,000 salary’ always remains a question. Thankfully a personal loan eligibility calculator can help you answer this question with certainty. 

Note: Check Lenders of Personal Loan for Low Salary

How Much Personal Loan Can I Get on Rs. 30,000 Salary?

The availability of online financial tools has made the loan process simpler and hassle-free. A personal loan eligibility calculator helps the prospective borrower get an accurate answer for his ‘how much personal loan can I get on Rs 30,000 salary’ question. 

This awareness cuts down the risk of loan application rejection which harms the credit score gravely. But how does a personal loan eligibility calculator work? Well, a personal loan eligibility calculator performs a comprehensive assessment of the candidate’s profile. The maximum amount that can be approved is linked to the repayment capacity of the individual. 

The maximum eligibility of the personal loan for Rs. 30,000 salary can be calculated using two methods:

  • Net Monthly Income Method (NMI) or the Multiplier Method – This method is used when the applicant has no fixed obligation i.e. no ongoing EMIs, no rent, or other monthly commitments. The borrower is applying for a loan for the first time.
  • Fixed Obligation to Income Ratio (FOIR) or Debt-Income Ratio – This method is used when the applicant has ongoing loans and financial commitments to honour every month. The borrower has one or more active loans in his kitty.

 Net Monthly Income Method or the Multiplier Method 

The maximum amount of personal loan that an individual is eligible for will be higher if the applicant has no ongoing liabilities or fixed commitments. Thus, the personal loan eligibility will be a multiple of the net monthly income (NMI). The value of the multiplier is between 27 and 30. The multiplier used is linked to the applicant’s profile. For instance, if the applicant meets the lender’s eligibility conditions perfectly, he’ll be eligible for a higher loan with an NMI multiple of 30.

Therefore for a person with Rs. 30,000 monthly salary, the maximum loan eligibility will range between Rs. 8.10 lakh and 9 lakh for a loan tenure of 60 months.  

Fixed Obligation to Income Ratio (FOIR) or Debt-Income Ratio

How much personal loan can I get on Rs. 30000 salary? Well, if you have existing monthly obligations, the maximum loan that can be approved will be calculated based on your monthly income post all expenses are honoured. If your debt-income ratio is already higher than 50%, your loan application will not be approved. Thus, the lower the FOIR of the debt-income ratio, the higher will be the loan eligibility.

Under the FOIR method, the lending companies provide 40% of the monthly income post expenses multiplied by the loan term as the amount of loan that the applicant is eligible for.

The table below shows the personal loan eligibility calculated for different amounts of fixed monthly obligations:

Monthly SalaryLoan Eligibility (Loan Term of Months)
Existing Fixed Obligations @ Rs. 3,000Existing Fixed Obligations @ Rs. 5,000Existing Fixed Obligations @ Rs. 7,500Existing Fixed Obligations @ Rs. 10,000Existing Fixed Obligations @ Rs. 15,000
 Rs. 30,000Rs. 6.48 LakhRs. 6 LakhRs. 5.4 LakhRs. 4.8 LakhNot Eligible

Eligibility Criteria to Avail Personal Loan on Rs. 30000 Salary

Every lending company has pre-set conditions to check the eligibility of its applicants. The applicant needs to meet all conditions to be eligible for the maximum amount of personal loan that too at the most favourable loan terms.

General RequirementsConditions and Limits
Age

The age of the borrower must be between 21 and 65 years.

The maximum loan term for which the loan will be approved will depend upon the age of the borrower, as the personal loan should be repaid within the productive years of the applicant.

Work Profile
  • Salaried
  • Self-employed professional
  • Self-employed non-professionals
  • Student
  • Retired officer

 

Anyone can avail of a personal loan. However, every category of applicants has different eligibility criteria.

Work Experience

Applicant’s work experience is mandatory. The work experience may range between 2-5 years for salaried and self-employed respectively.

The last 1 year should be with the existing employer or in the same profession.

Income

Salaried Individuals - Minimum monthly income of Rs. 15,000

Self-employed individuals - Minimum monthly income of Rs 20,000  

Credit Score

Minimum credit score - 600

Recommended Credit Score - 750

Fixed Obligation To Income RatioDebt-Income Ratio must be below 50%. It is used to gauge the repayment capacity of the applicant.

Documents Required to Avail Personal Loan

Identity Proof

Mandatory

  • PAN Card

Any one of the following

·         Aadhaar Card

  • Valid Indian Passport
  • Valid Voter ID
  • Valid Driver’s License
Address Proof

Any one of the following

  • Aadhaar Card
  • Valid Indian Passport
  • Valid Voter ID
  • Utility Bills (Electricity, Water, Gas) not more than 2 months old
  • Valid Driver’s License
Income Proof

Salaried

  • 3-month salary statement
  • A 3-month bank account statement showing salary credit
  • 2-year ITR copy

Self-Employed

  • 3-month bank account statement of business account
  • 2-Year ITR
  • 2-Year Balance Sheet and Profit and Loss Account audited by CA

Best Personal Loan Interest Rates in India 2021

The best personal loan interest rates available in India are:

Name of Lending CompanyRate of InterestProcessing Fee
Best Bank Personal Loan Interest Rate and Charges
SBI Bank08.50% p.a. onwards1% of the loan amount subject to a minimum of Rs. 1,000 and a maximum of Rs. 10,000 (GST extra)
UCO Bank
  • 10.05% p.a. onwards for women applicants
  • 10.30% p.a. onwards for male applicants
1% of the loan amount + GST, subject to a minimum of Rs. 750
IDFC First Bank                    10.49% p.a. onwards3.5% of the loan amount + GST
ICICI Bank10.50% p.a. onwardsUp to 2.5% of the loan amount + GST
HDFC Bank10.50% p.a. onwardsUp to 2.5% of the loan amount + GST, subject to a maximum of Rs. 25,000 for salaried individuals
Kotak Mahindra Bank10.75% p.a. onwardsUp to 2.5% of the loan amount + GST
Yes Bank                               13.99% p.a. onwardsUp to 2.5% of the loan amount + GST, subject to a minimum of Rs. 999 + GST
Best NBFC Personal Loan Interest Rate and Charges
Tata Capital10.99% p.a. onwards2.75% of the loan amount + GST
Aditya Birla Finance11% p.a. onwards1% of the loan amount + GST
Fullerton India11.99% p.a. onwardsBetween 0% and 6% of the loan amount
Bajaj Finance13.00% p.a. onwardsUp to 4% of the loan amount + GST
IIFL Finance13.00% p.a. onwardsUp to 2% of the loan amount + GST
India Bulls13.99% p.a. onwards3% of the loan amount + GST
    

Steps to Avail Personal Loans with Salary up to Rs. 30,000

Looking for how to avail a personal loan with a salary up to Rs. 30,000, here are simple steps to guide you through:

  • Eligibility check – The personal loan process starts with an eligibility check. Visit the official website of the lending company from which you wish to take a loan. Use the personal loan eligibility calculator and key in the required information regarding age, occupation, and income, etc. Once you submit the information, the personal loan eligibility amount will appear on the screen.
  • Choose a loan plan – Once you know the loan eligibility limit, select the loan plan that works best for you. Read through the terms and conditions, rate of interest, and other charges. Choose the loan term prudently
  • Submission of documents – The list of required documents to process the selected loan plan will appear on the screen. If you are applying online, upload images of the necessary documents and if you are applying offline, attach the required documents with the loan application form. In case required, the lending company may ask for additional documents.
  • Loan approval and disbursal – Once the document verification is complete and the lending company is satisfied with the loan application, your loan will be approved. You will get an intimation of the same. The loan disbursal will happen after loan approval. The loan proceeds will be credited into the bank account.

How can I Improve my Eligibility for a Personal Loan in India?

To improve your loan eligibility, one needs to fulfil all the eligibility conditions set by the lender. This will enable the borrower to get the personal loan approved on favourable terms and conditions. The ways to improve your eligibility for a personal loan are:

  • Work towards building credit score – The higher your credit score, the better will be your loan eligibility. Strive towards building a good credit score. This can be done by paying off existing debts and financial obligations diligently. 
  • Apply for a loan after thorough research – Apply for a loan only after you have read the fine prints of the lender. Every rejection of a loan application reduces your credit score.
  • Apply for one loan at a time – Applying for several loans at one time is considered as ‘credit hungriness’. This is not preferred by lenders and therefore leads to loan rejection which further causes a dip in the credit score.
  • Keep documents ready – The information used to check eligibility must be validated through proper documents. Keep your documents ready before you apply for the loan.
  • Club income from all sources – The higher the income, the higher will be the loan eligibility. The personal loan eligibility is dependent on the repayment capacity of the applicant. Therefore, to be eligible for a higher loan amount, add incomes from all other sources. However, keep the supporting documents ready to validate your position.
  • Apply with a co-applicant – A co-applicant with a good credit score can help improve personal loan eligibility.
  • Opt for a smaller loan term – A loan requirement for a shorter loan term has higher odds of qualifying loan eligibility. 
  • Opt for a low principal amount – The higher the principal amount, the higher will be the chances of loan rejection. Use a personal loan eligibility calculator to know ‘how much personal loan can I get on Rs. 30000 salary?’. 
  • Provide collateral – Personal loans are unsecured loans, but applying for a personal loan with collateral can improve the eligibility. 
  • Choose the right lender – As different lending companies have different eligibility conditions, find the lender with eligibility criteria you can fulfil. This improves personal loan eligibility.  

 FAQs

✅How much personal loan can I get on Rs. 30,000 salary?

The amount of personal loan you are eligible for on Rs. 30,000 salary is:

Multiplier Method – No ongoing liability

On an Rs. 30,000 monthly salary, the maximum loan eligibility will range between Rs. 8.10 lakh and 9 lakh for a loan tenure of 60 months.  

FOIR Method – With existing liability (Loan term 60 months)

  • Existing Fixed Obligations @ Rs. 3,000 - Loan Eligibility Rs. 6.48 Lakh
  • Existing Fixed Obligations @ Rs. 5,000 - Loan Eligibility Rs. 6 Lakh
  • Existing Fixed Obligations @ Rs. 7,500 - Loan Eligibility Rs. 5.4 Lakh
  • Existing Fixed Obligations @ Rs. 10,000 - Loan Eligibility Rs. 4.8 Lakh

✅ At what rate of interest can I get a personal loan for Rs. 30,000 salary?

SBI Bank levies the lowest rate of interest @ 08.50% p.a. on a personal loan for Rs. 30,000 salaries. It is followed by UCO Bank charging 10.05% p.a. onwards for women applicants and 10.30% p.a. onwards for male applicants.

✅How can I improve my eligibility for a personal loan?

The best way to improve personal loan eligibility is to build and maintain a high credit score.

✅How can I check my loan eligibility?

You can use a personal loan eligibility calculator to check your loan eligibility. The calculator is available online at both bank websites and third-party aggregator websites.

✅What are the eligibility conditions to avail of a personal loan on Rs. 30,000 salary?

To avail a personal loan on Rs. 30,000 salaries, the eligibility conditions are: 

  • Age between 21 - 65 years
  • Salaried or self-employed
  • At least 2-year work experience for salaried employees with last 1 year with the same employer
  • At least 5-year work experience for self-employed with last 1 year in the same profession
  • Credit score above 750
  • A debt-income ratio lower than 50%