Know Maximum Personal Loan Amount Limit in India
There isn't a specific formula to determine one's eligibility, as we consider multiple factors when deciding on the loan amount. Check out this article if you're looking for information on Personal Loans and the maximum loan amounts that NBFCs like us can grant based on your income.
Maximum Personal Loan Amount Limit in India
The maximum Personal Loan amount you can get depends on several factors like your credit history, repayment behaviour, current financial obligations and lender’s policies. So, if you have a good credit score, a low debt-to-income (DTI) ratio, a low credit utilisation ratio and a good repayment history, lenders can quickly sanction your loan with favourable terms.
At Hero FinCorp, you can get a Personal Loan of up to Rs 5,00,000 at competitive interest rates starting from 1.58% per month and flexible repayment tenures of 12 to 36 months. What’s more, you can get approval in less than 10 minutes when you apply online.
| Loan Amount | Interest Rate (per annum) | Processing Fees | Repayment Tenure |
|---|---|---|---|
| Up to Rs 5 Lakh | Minimum 19% p.a. and Maximum 30% | 2.5% of the loan amount + GST | 12 to 36 months |
How Can I Get A Personal Loan In India?
If you're looking to get a personal loan in India, there are a few factors you need to consider. Lenders typically have specific requirements when it comes to age, income, occupation, and work experience. In this table, we've outlined some key factors that can impact your ability to get a Personal Loan in India, whether you're applying for a personal loan in Ahmedabad or any other city.
| Age | Income | Occupation | Work Experience | Loan Amount (in Rs) | Range of Interest Rate |
|---|---|---|---|---|---|
| 23 | Rs 15,000/month | Front Office Executive | 1 year | Rs 0.5 Lakh | 19% - 30% |
| 28 | Rs 35,000/month | Teacher | 3 years | 50,000 - 1.5 Lakh | 19% - 30% |
| 25 | Rs 40,000/month | Software Engineer | 2 years | 3-5 Lakh | 19% - 30% |
| 35 | Rs 60,000/month | Doctor | 5 years | 5 Lakh | 19% - 30% |
Note: The above table is for illustrative purposes only, and the actual loan amounts and interest rates may vary.
How Personal Loan Interest Amount is Determined?
Personal loan interest can be calculated using the Flat Rate or Reducing Balance Method. Here's how each method works:
| Flat Rate Method | Reducing Balance Method |
|---|---|
| Interest is calculated based on the original loan amount; it remains constant throughout the term. | The interest rate is applied to the remaining loan balance after each EMI payment. |
| EMI payments are fixed and include both principal and interest amounts. | EMI payments gradually decrease with the outstanding loan amount, and the interest amount decreases as well. |
| This method may result in a higher interest payout than the Reducing Balance Method. | This method is more commonly used and is more cost-effective for borrowers. |
What Are The Various Payment Methods for a Personal Loan?
Different methods are available when it comes to repayment of a Personal Loan.
| Payment Method | Brief Description |
|---|---|
| Electronic Clearance System or ECS | Automatic deduction from your bank account |
| Post-dated Cheques or PDCs | Issuing cheques with future dates for repayment |
| National Automated Clearing House (NACH) | Automated payment system for loan repayment |
| Debit mandate or standing instruction | Permitting the bank to deduct the EMI |
Also Read : Get a quick and easy instant loan online
Conclusion
Hope this article was helpful in guiding you through the process of obtaining a Personal Loan in India. Please note that the above information is a general guide and may vary from one lending institution to another and applicant to applicant. You should cross-check the details and be sure about various factors, such as credit score for Personal Loans, before applying. Whether you're looking for a small top-up or a 1.5 lakh instant personal loan, our experts are always available to assist you with any queries or concerns.
Frequently Asked Questions
1. What is the maximum amount of personal loan in India?
The loan amount will differ from one lender to the other. Hero FinCorp offers a maximum amount of Rs 5,00,000.
2. What affects the highest personal loan amount in India?
Your credit score, age, debt-to-income or DTI ratio, and lender's rules determine how much Personal Loan you can get.
3. Is there a limit for personal loan amounts in India?
Yes, different lenders have different loan limits, like Hero FinCorp has a limit of up to Rs 5 Lakh.
4. What is the eligibility for the maximum personal loan in India?
The eligibility at Hero FinCorp includes your age (21 58), monthly income (Rs 15,000), credit score (750+) and work experience (between 6 months to 2 years).
5. Can I apply for the maximum personal loan amount in India?
Yes, if you meet the lender’s eligibility criteria and have a good credit score and a low DTI ratio.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.
About Hero Fincorp
Hero Fincorp offers a wide range of financial products including Personal Loans for personal needs, Business Loans to support business growth, Used Car Loans for purchasing pre-owned vehicles, Two-Wheeler Loans for bike financing, and Loan Against Property for leveraging real estate assets. We provide tailored solutions with quick processing, minimal paperwork, and flexible repayment options for smooth and convenient borrowing experience.
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Disbursement
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.