In today’s time, if there is a sudden need for money, people first resort to personal loan. Whether you want to repair your house, meet wedding expenses or need immediate money for some important work, personal loan from banks and NBFCs has become an easy option. But do you know that your salary and CIBIL score decide how much loan you can get. Let us tell you today how much loan you can get and how you can check it.

How much loan can one get according to salary?

Banks usually set a personal loan limit of 20 times your monthly income. That means, the higher your salary, the more are your chances of getting a loan. In such a situation, if your salary is Rs 25,000 per month then you can get a loan up to Rs 5 lakh. Whereas if your salary is Rs 50,000 then you can get a loan up to Rs 10 lakh. Apart from this, if your salary is Rs 75 thousand then you can get a loan up to Rs 15 lakh. In this way, the higher your salary, the more loan you can get. However, every bank has its own loan cap limit in which some banks give loans only up to Rs 25 lakh, while some banks approve loans up to Rs 40 or even Rs 50 lakh.

How much loan is right to take?

According to financial experts, any person should take such a loan whose EMI is not more than half of his salary. For example, if your monthly salary is Rs 25,000 then your EMI should not be more than Rs 12,500. In this way, there is no problem in repaying the loan and expenses are also not affected.

What factors decide the loan amount?

• Income- Your monthly salary and its source are the biggest factors to decide the loan amount. In this, the bank sees whether your job is stable or not and whether your income comes regularly or not.
• Credit Score- Credit score is a three-digit number that tells you your credit card history. In this, if the score is 750 or more, the loan gets approved quickly and the interest rate is also low.
• Current Loan- If you already have a loan, then while giving a new loan, the bank also keeps in mind which and how much loan you already have.
• Loan Cap- Loan cap means that every bank has a maximum limit. Loans beyond that limit are not approved.

Check your CIBIL score like this

• To check your CIBIL score, go to the official website of CIBIL www.cibil.com.
• After this click on Get Your Free CIBIL Score.
• Now fill the information like your name, PAN card number, date of birth and email.
• After this verify with OTP.
• After verification, your credit report and CIBIL score will be sent to your email ID.

Also read: Has anyone taken a loan on your PAN card? You can check like this