How much personal loan can you get with a ₹20,000 salary? Find out how much loan you can secure based on your income.
How much of a personal loan can you get with a salary of ₹20,000? Here, you can learn about loan eligibility for salaries ranging from ₹25,000 to ₹1 lakh, how the EMI is calculated, and the essential conditions set by banks.
Often, there is a sudden need for funds—whether for urgent household matters, weddings, medical expenses, or repaying existing debts. In such situations, people consider taking a personal loan. But if your salary is ₹20,000, how much will a bank lend you? Is it possible to get a personal loan with a modest salary?
The answer is yes; it is possible to get a personal loan with a lower salary, subject to certain conditions. However, banks do not offer the same loan amount to every customer. The loan amount is determined based on factors such as your monthly income, employment, credit score, existing EMIs, and the bank's specific terms and conditions.
What is the loan limit?
If your monthly salary is ₹20,000, you can easily secure a loan ranging from ₹2 lakh to ₹3 lakh, provided you have a good credit history and low existing financial liabilities.
However, every bank has different criteria regarding the minimum salary. For instance, under SBI's rules, the required salary is ₹20,000 for certain government and defense sector customers, whereas it is ₹25,000 for corporate sector customers. HDFC Bank also sets a minimum monthly income requirement of ₹25,000 for its personal loans.
How much personal loan can you get based on your salary?
| Monthly Salary |
Loan Amount |
|---|---|
| ₹20,000 |
₹2 lakh to ₹3 lakh |
| ₹25,000 |
₹2.5 lakh to ₹3.75 lakh |
| ₹30,000 |
₹3 lakh to ₹4.5 lakh |
| ₹40,000 |
₹4 lakh to ₹6 lakh |
| ₹50,000 |
₹5 lakh to ₹7.5 lakh |
| ₹75,000 |
₹7.5 lakh to ₹11.25 lakh |
| ₹1,00,000 |
₹10 lakh to ₹15 lakh |
What would the EMI be for a ₹20,000 salary?
If you obtain a personal loan of ₹2 lakh for a tenure of 3 years at an annual interest rate of 15%, your EMI would be approximately ₹6,933 per month. This means that ₹6,933 out of your ₹20,000 salary will go towards loan repayment each month. You will then be left with approximately ₹13,067 for other expenses. From this amount, you will have to cover costs such as house rent, groceries, electricity bills, and other necessities.
