Personal Loan for ₹20,000 Salary

Applying for a personal loan with a ₹20,000 salary is straightforward and stress-free on Bajaj Markets. All you need is a smartphone or computer to finish the easy online application process quickly. Fill in basic details, verify your eligibility, and instantly view your personalised loan offers. You can select loan terms that fit comfortably into your monthly budget, ensuring you avoid financial strain. With quick approvals and fast disbursals, getting funds to meet your financial goals is simple, even with a moderate salary.

Here are essential features and benefits that make personal loans ideal for those earning a ₹20,000 salary:

Instant Fund Availability

Access quick loan approvals and immediate disbursal, ensuring urgent financial requirements are handled without delay.

Lowest Interest Rates

Benefit from attractive interest rates starting from 9.99% p.a., reducing overall borrowing expenses.

No Collateral Required

Secure your loan without pledging any assets or requiring guarantors, making borrowing simple and risk-free.

Flexible Repayment Period

Enjoy comfortable repayments with flexible tenures up to 8 years, tailored to your budget and financial capability.

Transparent Fee Structure

Gain clarity on repayment obligations from the start with transparent processing fees and no hidden charges.

Easy Online Application

Apply conveniently through a quick online process with minimal documentation, all from the comfort of your home.

Diverse Loan Options

Select from various loan offers by more than 20 reputed lenders, ensuring you get the ideal loan terms.

Multipurpose Financial Solution

Use your loan for diverse needs such as medical bills, education costs, weddings, travel, or consolidating debts.

The amount you may borrow with a salary of ₹20,000 depends on your financial profile and the lender’s evaluation methods. Two standard methods are the Multiplier Method and the Fixed Obligation to Income Ratio (FOIR) Method.

Multiplier Method

In this approach, lenders calculate your personal loan eligibility by multiplying your Net Monthly Income (NMI) by a predetermined factor, typically ranging from 10 to 24. The exact multiplier varies based on the lender's policies and your financial health.

Example Calculation:

• Monthly Salary (NMI): ₹20,000

• Assumed Multiplier: 15

• Eligible Loan Amount: ₹20,000 × 15 = ₹3,00,000

This means, with a ₹20,000 salary and a multiplier of 15, you could be eligible for a personal loan of up to ₹3,00,000.

Estimated Personal Loan Eligibility for Salaries up to ₹20,000 Using the Multiplier Method

Here is a table showing estimated personal loan amounts based on monthly salaries up to ₹20,000 using the multiplier method:

Key Notes:

• Loan amounts are calculated using a multiplier of 15 times the monthly income

• This assumes there are no existing financial liabilities or ongoing loan repayments

Fixed Obligation to Income Ratio (FOIR) Method

Through the FOIR method, you can assess your loan eligibility based on your existing financial obligations relative to your income. Lenders prefer that a borrower's total monthly obligations, including the new loan EMI, do not exceed a certain percentage of their NMI, commonly around 50-55%.

Example Calculation:

• Monthly Salary (NMI): ₹20,000

• Maximum Allowable Obligations (50% of NMI): ₹20,000 × 50% = ₹10,000

• Existing Monthly Obligations: ₹3,000

• Available for New Loan EMI: ₹10,000 - ₹3,000 = ₹7,000

Based on the available amount for the new loan EMI, lenders will determine the loan amount you are eligible for, considering the interest rate and loan tenure.

Your CIBIL score plays a vital role in securing personal loan approval, especially with a salary of ₹20,000. Lenders generally look for a minimum CIBIL score of 650, indicating good financial discipline. However, maintaining an ideal score of 700 or higher is recommended, as it enhances your loan eligibility and offers better interest rates. If your current score is below 650, regular and timely repayments can help you gradually improve it, increasing your likelihood of qualifying for a personal loan and obtaining favourable terms.

Here is an easy-to-follow checklist outlining key eligibility criteria to secure a personal loan on a ₹20,000 salary:

• You must be an Indian citizen

• You should either be a salaried employee or a self-employed professional

• Your age must be between 21 and 60 years at the time of applying

• You must have a regular and consistent income

• Your total work experience must be at least one year

• Maintaining a minimum CIBIL score of 650 improves your loan approval chances

Here are other critical factors lenders consider beyond your salary and credit score when evaluating personal loan eligibility:

Income Stability

Lenders prefer borrowers with a regular monthly income that comfortably supports loan repayments along with basic living expenses.

Outstanding Debts

Having fewer existing debts improves your eligibility as lenders view manageable debt levels positively, ensuring you can repay new loans easily.

Employment History

Longer employment history, ideally two years or more with the same employer, boosts your approval chances by demonstrating steady and secure income.

Age of the Borrower

Lenders typically favour applicants between the ages of 21 and 55 years, as they are considered financially stable with enough working years remaining.

Ongoing Financial Obligations

Existing financial responsibilities like home loans or car loans can impact eligibility, as lenders assess your ability to manage additional repayments responsibly.

Debt-to-Income Ratio

A low debt-to-income ratio significantly enhances eligibility by indicating that your monthly income sufficiently covers your current debts.

Banking Relationship

Having an established banking relationship can improve your chances for loan approval, potentially leading to better loan terms and faster processing.

Knowing exactly which documents you need helps speed up your personal loan approval process. Here is a simplified table of documents required to apply for a personal loan on Bajaj Markets:

Note: Document requirements for a personal loan on a ₹20,000 salary may differ from one lender to another. Always check with your chosen lender directly to confirm specific eligibility criteria and necessary documentation.

Here is a simplified and efficient guide to quickly apply for your personal loan through Bajaj Markets:

1. Visit the Bajaj Markets personal loan application page

2. Select your profession type from the dropdown menu

3. Provide your mobile number and residential PIN code

4. Agree to the provided terms and conditions

5. Click on the ‘Proceed’ button

6. On the next application page, enter or select these details:

• PAN number

• Full name (as per PAN card)

• Date of birth

• Monthly net salary

• Employer category

• Employer or company name

• Valid email ID

• Gender

• Mode of salary credit (Bank or Cash)

1. Click on the ‘Submit’ button

2. View the personal loan offers available based on your eligibility

3. Choose your preferred personal loan offer

4. Provide additional information or documentation, if requested

5. Complete KYC verification, e-mandate setup, and loan disbursal on the lender’s website