Personal Loan for Salary ₹ 1 Lakh

Turn your dreams into reality with a Personal Loan For Salary Rs 1 Lakh. Whether it’s for higher studies, home renovation, or a dream vacation, quick financial support is within reach. Enjoy affordable interest rates and flexible eligibility, specially designed for individuals earning ₹1 lakh monthly. Achieve your goals and secure your financial future with ease.

Personal Loan Options

Following are some of the personal loan options available for individuals earning up to Rs 1 Lakh / Month:

1) State Bank of India (SBI) – SBI Xpress Credit Personal Loan

This scheme offers quick disbursal of funds with minimal documentation requirements. It can be an ideal fit for individuals earning Rs 1lakh/month at competitive interest rates.

2) HDFC Bank – HDFC Bank Personal Loan

HDFC Bank offers personal loans to salaried individuals with flexible repayment options and attractive interest rates. Borrowers can use loans for various purposes, including wedding expenses, travel, home renovation, etc.

3) ICICI Bank – ICICI Bank Personal Loan

ICICI Bank provides personal loans with competitive interest rates, flexible repayment options, and quick approval processes. Borrowers can choose from various loan amounts and tenure options to suit their needs.

4) Axis Bank – Axis Bank Personal Loan

Axis Bank offers personal loans with attractive interest rates, minimal documentation, and fast disbursal of funds. Borrowers can avail of loans for various purposes, including medical emergencies, education expenses, etc.

Features & Benefits for Rs 1 Lakh Salary Personal Loan

Here are some common features and benefits of personal loans suited for individuals earning Rs 1 lakh per month:

• Flexible Loan Amount: Individuals earning up to Rs 1 Lakh/month are offered a range of loan amounts to choose from, allowing borrowers to borrow as per their requirements and repayment capacity.
• Attractive Interest Rates: The loan options have attractive and competitive interest rates, which make them affordable and cost-effective for borrowers.
• Minimal Documentation: Compared with other kinds of loans, a personal loan does not require documentation, and the disbursement process is usually very quick.
• No Collateral Required: Personal loans are typically unsecured, meaning you don’t need to provide any collateral or security to obtain one. This reduces the risk to your assets.
• Use for Various Purposes: You can use the loan amount for various purposes, including debt consolidation, home renovation, medical emergencies, education expenses, and wedding expenses.
• Easy EMI Options: Many lenders offer flexible EMI (Equated Monthly Installment) options, allowing you to repay the loan conveniently over the chosen tenure.
• Online Account Management: With the digitalisation of banking services, most lenders provide online account management facilities, allowing you to track your loan status, make payments, and access statements conveniently.
• Prepayment and Foreclosure Options: Some lenders offer the flexibility to prepay or foreclose the loan partially or entirely before the end of the tenure, helping you save on interest costs.
• Flexible Tenure: Personal loans often come with flexible repayment tenure, usually 1 year to 5 years. This allows you to choose a tenure that suits your financial situation and repayment capacity.
• Improved Credit Score: A higher credit score unlocks lower interest rates and better loan terms, saving you money. It signals financial reliability to lenders, increasing approval chances for loans and credit.

Personal Loan: Eligibility & Documents Required

The eligibility criteria and documents for getting a personal loan vary among lenders, but the criteria and requirements of different banks are typically similar. Here are some eligibility requirements you might need to fulfil and the documents you need to keep handy when applying for a personal loan:

Eligibility

• Age: Typically between 21 to 65 years, although this varies from bank to bank.
• Employment Status: Salaried or self-employed individuals may be eligible.
• Income: A minimum income threshold, such as a monthly or annual income, is usually required.
• Credit Score: A good credit score demonstrates creditworthiness and enhances eligibility. Most banks find credit scores between 720 and 750 worthy of a loan.
• Employment Stability: Lenders may prefer applicants with stable employment or business continuity.

Documents Required

• Identity Proof: Passport, Aadhar card, Voter ID, or government-issued photo ID.
• Address Proof: Utility bills, rental agreement, or any official document showing your residential address.
• Income Proof: Salary slips, bank statements, income tax returns, or Form 16 for salaried individuals. Business financial statements for self-employed individuals.
• Employment Proof: Employment certificate, appointment letter, or business registration documents.
• Bank Statements: Usually for the last 3 to 6 months, showcasing your financial transactions.
• Passport Size Photographs: A few recent passport-size photographs may be required.
• Additional Documents: Additional documents may be requested depending on the lender’s requirements.

Interest Rates on Personal Loans

The interest rates on a personal loan when you earn up to Rs 1 lakh per month can change. They depend on where you’re borrowing from, your credit history, how much you’re borrowing, and for how long. People with higher salaries usually get lower rates because they’re more likely to pay back the loan. But it’s smart to compare rates from different lenders to find the best deal. Having a good credit score and showing you’re financially stable can also help you negotiate lower rates.

The table below showcases a few examples of the interest rates provided by different lenders:

How Much Amount Can I Demand For a Personal Loan?

The personal loan amount you can receive with a salary of Rs 1 lakh or less depends on factors such as your monthly expenses, existing debts, credit score, and the lender’s criteria. 

Lenders often consider a debt-to-income ratio (DTI), aiming for your total monthly debt payments, including the new loan instalment, not to surpass a certain percentage of your monthly income, typically around 40-50%.  For example, if your salary is Rs 1 lakh per month and the lender follows a 40% DTI ratio, your total monthly debt payments, including the new personal loan instalment, should not exceed Rs 40,000. The maximum loan amount you might qualify for depends on your existing debt obligations and the specific terms offered by the lender.

Therefore, your eligibility for a loan amount will be influenced by your current debt commitments and the specific terms set by the lender. It’s recommended that you contact lenders directly to understand how much you could qualify for based on your unique financial circumstances.

Maximum Amount of Personal Loan

Let us take a look at the eligible amount of personal loan a loan applicant can avail of depending on their salary:

The table shown above aims to give an understanding of the maximum loan amount an applicant can avail of depending on his monthly income. To determine the maximum loan amount you qualify for, you’ll need to contact your lending institution and inquire directly.

How to Apply for a Personal Loan?

Here’s a simplified guide to applying for a Personal Loan:

• Go to the official Urban Money website.
• Choose the “Loan” section and click “Personal Loan.”
• You’ll be taken to a page dedicated to Personal Loans, featuring top lenders across India.
• Click on “Apply Now”.
• An online form will ask for your name, mobile number, and city.
• You’ll receive a 6-digit OTP on your mobile device; enter it into the form and click “Submit.”
• Expect a call from one of Urban Money’s loan specialists soon after.