Personal loans can be a lifesaver when you’re facing financial challenges, whether it’s for medical emergencies, education, home repairs, or even debt consolidation. But what if your monthly income is ₹25,000? Is it still possible to get a personal loan? The answer is yes, though it comes with certain considerations. Here’s a practical guide on how to get a personal loan with 25,000 monthly salary.
1. Understand Lender Criteria
Banks and NBFCs (Non-Banking Financial Companies) assess your repayment ability before approving a loan. If your salary is ₹25,000 per month, lenders will look at factors such as:
- Fixed Obligations to Income Ratio (FOIR): This is the portion of your income that goes towards existing EMIs. Ideally, your FOIR should be under 40-50%.
- Employment stability: Working with a reputable company or having a steady job for at least 6–12 months increases your chances.
- Credit score: A good credit score (usually 700 or above) helps you get better loan offers.
2. Choose the Right Lender
Not all lenders have the same eligibility criteria. Some traditional banks may have a higher minimum income requirement (₹30,000 or more), while many NBFCs and digital lending platforms offer loans to those earning ₹15,000–₹25,000.
Some lenders to consider:
- Bajaj Finserv
- PaySense
- MoneyTap
- CASHe
- KreditBee
- EarlySalary (now Fibe)
These fintech lenders often provide smaller-ticket personal loans and may approve lower income applicants, provided they meet other criteria.
3. Apply for a Lower Loan Amount
With a salary of ₹25,000, expecting a large loan might not be realistic. A general rule is that lenders offer a personal loan amount where the EMI does not exceed 40–50% of your monthly income. That means:
- Maximum affordable EMI: ₹10,000–₹12,500
- Based on the EMI and tenure (say 2–3 years), you could get a loan amount between ₹50,000 and ₹2 lakh, depending on interest rates.
If you apply for a loan amount that matches your income profile, your chances of approval go up.
4. Maintain a Good Credit Score
If your credit score is poor or non-existent, lenders may hesitate to approve your loan. Here’s how you can improve or maintain a good credit score:
- Pay existing EMIs and credit card bills on time.
- Keep your credit utilization low.
- Avoid applying for multiple loans or credit cards in a short span.
A credit score above 700 can make a huge difference in your loan approval and interest rate.
5. Provide Complete and Accurate Documentation
For salaried individuals, lenders generally ask for:
- Identity proof: Aadhaar card, PAN card
- Address proof: Utility bill, Aadhaar card, etc.
- Income proof: Salary slips (last 3 months), bank statements
- Employment proof: Offer letter or employee ID
Ensure all documents are up-to-date and correctly submitted to avoid delays or rejections.
6. Improve Eligibility with a Co-applicant or Guarantor
If you’re finding it difficult to get approval on your own, consider applying with a co-applicant (like a parent or spouse) who has a higher income or better credit profile. This significantly boosts your eligibility and might even help you get a better interest rate.
7. Compare Interest Rates and Terms
Don’t accept the first offer you get. Use online comparison tools or aggregator platforms like BankBazaar, PaisaBazaar, or LendingKart to compare interest rates, processing fees, and other terms across different lenders.
Final Thoughts
Getting a personal loan with a ₹25,000 salary isn’t impossible, but you need to be smart about it. Focus on smaller loan amounts, keep your credit history clean, and consider alternative lenders if traditional banks say no. Always borrow responsibly and ensure that the EMI fits comfortably within your budget.
