Personal loans are popular unsecured loans owing to their immense benefits like flexible use options, quick and hassle-free process and minimal documentation required to apply. If you’re a salaried individual and meet the personal loan eligibility criteria specified, you can avail it online instantly.
Your eligibility criteria is largely determined by the combination of factors such as employment details, type of loan and its tenure you wish to opt for, credit scores and the rate of interest charged on that. Out of all eligibility factors, your monthly salary is the most important component that determines the outcome of your personal loan application. The reason being that your income determines your repayment capacity which is crucial for Clix Capital.
And your repayment capacity is determined by your monthly net income versus the fixed financial obligations. Ideally, such a ratio should be 50% and above to indicate a healthy pattern of income and a solid loan repayment capacity.
How Much Personal Loan Can I Get on 20000 Salary in India?
The reason behind going for an instant personal loan can be diverse – debt consolidation, medical emergency, wedding, higher education, luxury travel, home renovation, and more.
When you opt for a personal loan, it implies that your savings are either inadequate to meet the expenses for a specific purpose or you wish to keep your savings and investments intact for future use. Whatever may be the case, your personal loan amount sanction is largely based on your income and credit score.
If you’re taking home a monthly salary of 20000 INR, you’re eligible to apply for a personal loan from Clix Capital (also depending on their eligibility conditions). Here are the eligibility conditions set by Clix Capital for applicants who wish to apply for an instant personal loan:
- You need to be between 21 and 58 years of age to be eligible for a personal loan.
- You should be a residing citizen of India.
- Your minimum monthly salary should be 20000 INR from all sources
- For salaried individuals, you should be employed with your current organisation for a minimum of 6 months and have a total work experience of 12 months.
Based on the above-mentioned eligibility conditions, your loan application is screened and evaluated by Clix Capital.
However, the general criteria say that the minimum Fixed Obligation to Income Ratio (FOIR) shouldn’t go over 40-50% of your net income after taking into consideration the EMI of your current proposed loan. For the unversed, Fixed Obligation to Income Ratio (FOIR) stands for the ratio of your net monthly income versus the fixed financial obligations like other loan EMIs, expenses, credit card commitments, and more.
If this ratio is successfully met and you qualify for the eligibility criteria, you stand higher chances of getting instant personal loan approval.
Step-wise Process to Avail Instant Personal Loan on 20000 Salary
Step 1: Check Your Credit Score for FREE & Get a pre-approved offer
Check your credit score for free to get pre-qualified offers from Clix. A good credit score is essential for your financial flexibility, creditworthiness and can result in swift approval and disbursals. You may also use the personal loan EMI calculator for finding what EMI plan is best suited for you.
Step 2: Apply for a Personal Loan from Clix
If you’re eligible for an offer, once you receive the credit score, Clix Capital’s system will share an offer with a link for you to apply. Click on Apply Now or visit the “Personal Loan” section, complete the online application form that only takes 3 minutes, and upload your valid documents. And done!
Depending on your credit score, if you’re eligible, we will suggest the most comfortable personal loan plans and provide in-depth details about repayment tenure, EMI amount, and interest rates. Always check your pre-empted EMI with a personal loan EMI calculator to know the EMI amount based on the loan amount, tenure, and rate of interest.
Step 3: Wait for Confirmation & Disbursal
Once you’ve submitted the application and uploaded all required documents, Clix Capital’s customer representative may call you for a quick conversation. If everything goes well, your personal loan will be approved. Congratulations! The availed amount will get disbursed to your account quickly.
Also Read: How to Avail of a Personal Loan Without Salary Slip?
How to Improve Your Eligibility for Personal Loan Approval?
To improve your eligibility and have higher chances of instant personal loan approval, you should deliberate the following pointers:
- Improve Your Credit Score: Your credit score plays a crucial factor in determining your personal loan approval chances as well as the rate of interest to be charged on your loan. Though you can avail of a personal loan even at a lower credit score, the subsequent rate of interest will be higher to cover the risk of loan default.
While, on the flip side, a credit score of 630 and above is considered good for personal loan approval and availing affordable interest rates.Applicants with a higher credit score are perceived as low-risk borrowers and vice versa. Check your credit score periodically and make sure your credit report is free of errors. Always be on time with your loan or credit card payments, don’t close your old credit accounts, and fix any errors in your credit report to improve your credit score.
- Avoid Applying for Multiple Loans at Once: Every time you apply for a personal loan, Clix Capital checks your credit score, which is termed a hard enquiry. If you apply for multiple loans at the same time, a large number of hard enquiries will make your credit score dip. Always ensure that you apply to just one lender at once and wait for the response before deciding the next course of action.
- Pay Off Existing Loans and Credits: As discussed above, the FOIR or debt-to-income ratio is a major determinant of your personal loan approval. To improve this ratio, it is always advised to pay off your existing debts before applying for a new loan. This will reduce your current obligations and improve your disposal income at hand to pay for the proposed loan EMIs.
- Declare Your Income from All Sources: If you’re a salaried individual, your monthly income from the employer is the most crucial one. However, if you’ve other sources of income like rent from property, interests on dividends, interests on deposits, and others; you should totally declare the sources. This increases your income and improves your personal loan eligibility.
- Add a Co-Applicant: If you have an average credit score or lower income, you can always add a co-applicant to your loan application. The co-applicant should have a higher credit score and regular income to add to yours. The co-applicant can either be your spouse, parents, or child.
At Clix Capital, we offer personal loans of up to ₹ 10 lakhs at competitive interest rates. You can choose a loan term from 12 to 48 months according to your budget and repayment capacity. Once you make up your mind to apply for a personal loan , follow this step-by-step guide to complete the online loan application procedure without any confusion.
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