Personal loans are one of the most famous and high-demand financial products offered by various financial institutes like banks, NBFCs, fintech platforms, etc. Because personal loan eligibility criteria are less stringent compared to other types of loans, which increases the reach of individuals, a few basic documents are required for the loan application. In comparison with other loan types, this type of loan requires much less documentation.
A personal loan can be disbursed in a shorter time, and most importantly, it can be taken for any personal reason, such as house renovation, a wedding ceremony, tuition fees, or exam fees. This article will lead you to all the necessary details regarding the 20 Lakh Personal Loan Salary Eligibility.
Understanding of 20 Lakh Personal Loan Salary Eligibility
A personal loan is a beneficial financial product, and obtaining one is simple due to an easy application process, but the procedure may vary depending on the loan amount. If the loan amount is smaller than the requirement needed to meet for a personal loan, the salary is also low. However, if individuals wish to obtain a personal loan of a high amount, such as a 20 lakh personal loan, the salary eligibility requirements are very high, along with other prerequisites.
These requirements vary from lender to lender. The higher the loan amount, the higher the salary required because this salary shows the repayment capacity of an individual. A higher-salaried individual will be able to pay off a big loan amount, but a low-salaried individual will struggle or not be able to pay off a big loan amount.
Factors Affecting the Approval Rate of 20 Lakh Personal Loan Salary Eligibility
✅ Monthly Income: The higher an individual’s income, the greater the chance of a higher loan approval rate because it shows the lender that this individual can repay the loan. For 20 Lakh Personal Loan Salary Eligibility, the requirements must be very high.
✅ Credit Score: A good score, such as 700 or above, increases the chance of getting a loan by demonstrating a better credit history of the individual’s ability to repay the loan.
✅ Employment Type: It helps lenders to know what kind of source of income an individual has. Like a salaried individual, they will have a limited amount of finance coming after a specific period, and a self-employed individual can have an unlimited amount of finance, but it depends on the market forces, which are immensely fluctuating.
✅ It is recommended that applicants be 21 to 60 years of age to apply for a personal loan
Documents Required For Student Credit Card Without FD
- Identity Proof: Aadhaar card, PAN card
- Address Proof: Aadhaar card, Utility bills
- Age Proof: Birth certificate, 10th marksheet
- It is important to have documentation of your education, including a college ID, bonafide certificate, and admissions receipt
- Proof of income: Letter of scholarship or stipend, Income statements for parents, Bank statements
Key Feature of 20 Lakh Personal Loan Salary Eligibility
| Feature | Detail |
| Loan Amount | ₹20,00,000 |
| Repayment Duration | 1 to 7 years |
| Processing Time | 24 to 48 hours |
| Interest Rate | 9% to 14% |
| Prepayment Option | Available (Charges may be applied) |
| Usage | Medical, wedding, travel, renovation, business, etc. |
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Conclusion
A 20 lakh personal loan is beneficial in case of the requirement of a big fund, but getting this large loan needs some high-standard eligibility criteria, like a high salary per month, a good credit score, and many more, but this fund can be used for any personal reason. There is no need to use this fund for any specific reason, meaning individuals can use the fund on their own.
Frequently Asked Questions
What is the 20 Lakh Personal Loan Salary Eligibility?
Lenders typically require applicants to have a monthly income of ₹50,000 to ₹60,000, especially for salaried individuals, although this range can be adjusted based on the applicant’s credit history or profile. Lenders also have their own rules, policies, and eligibility criteria, which is why you should always check properly about the specific section of the 20 Lakh Personal Loan Salary Eligibility from RBI-verified financial institutions.
Can lower-income individuals get a 20 lakh personal loan if there is no existing debt on the individual?
Yes, if the applicant’s income is low compared to the standard of 20 lakh for personal loan salary eligibility, then other factors can affect the approval rate of a personal loan, such as having zero liabilities, which can slightly improve an individual’s chances of getting a personal loan.
