Introduction
Personal loans have become a popular financial tool for individuals looking to meet immediate financial needs such as medical emergencies, home renovations, travel, or debt consolidation. ABFL PL, one of India’s leading private sector banks, offers personal loans with flexible repayment options and competitive interest rates. If you have a salary of ₹100,000 per month and are considering a personal loan in India, this guide will help you understand the maximum loan amount you may be eligible for, the eligibility criteria, and factors affecting loan approval.
How ABFL PL Determines Loan Eligibility
ABFL PL evaluates personal loan eligibility based on various factors, including income, employment status, existing liabilities, and credit history. The general formula used to determine eligibility is the Fixed Obligation to Income Ratio (FOIR), which considers the portion of your income committed to existing obligations.
Basic Eligibility Criteria:
- Age: 21 to 60 years
- Employment Type: Salaried employees of government institutions, private companies, or MNCs
- Minimum Monthly Income: ₹25,000 (varies by location)
- Work Experience: At least 6 months with the current employer
- Credit Score: 700 and above preferred
- Loan Tenure: 12 to 60 months
- Processing Fee: 1.5% to 2% of the loan amount
- Prepayment Charges: 2% to 5% of the outstanding loan amount
Maximum Loan Eligibility Based on a ₹100,000 Salary
The loan amount eligibility primarily depends on your monthly income and existing liabilities. ABFL PL typically offers personal loans with a loan-to-income (LTI) ratio of 15 to 20 times your net monthly income.
Loan Calculation Example:
- Without Existing Liabilities
- If your net monthly salary is ₹100,000 and you have no other loans, you may get:
- Loan Amount: ₹15 to ₹20 lakhs
- Tenure: Up to 5 years
- Interest Rate: 10.49% – 22% p.a.
- EMI Estimate for ₹20 Lakhs at 12% Interest for 5 Years: ₹44,491 per month
- With Existing Liabilities
- If you have ongoing EMIs (e.g., home loan, car loan, credit card debt), your loan eligibility calculator will show a reduced amount.
- ABFL PL follows the FOIR method, where 50% of your salary can be used for EMIs.
- Suppose you pay ₹30,000 in EMIs already, your available EMI affordability will be around ₹50,000.
- This may reduce the eligible loan amount to around ₹12 to ₹15 lakhs.
Factors Affecting Loan Approval
- Credit Score: A score above 750 increases the chances of approval and lower personal loan interest rates.
- Debt-to-Income Ratio: Lower existing EMIs ensure higher eligibility.
- Job Stability: Longer tenure in a stable job boosts credibility.
- Employer Category: Working in a reputed company or government job enhances approval chances.
- Loan Repayment History: Timely repayments on previous loans improve loan approval chances.
- Location: Metro city applicants may get higher loan limits than applicants from smaller towns.
How to Apply for a Personal Loan with ABFL PL
- Online Application: Visit the ABFL PL website and fill out the ABFL PL loan application form.
- Submit Documents: Provide KYC documents, salary slips, bank statements, and proof of employment.
- Loan Processing: ABFL PL will verify your creditworthiness and financial background.
- Approval & Disbursal: If approved, the loan amount is credited within 24-48 hours, making it an instant loan approval process.
Benefits of Taking a Personal Loan from ABFL PL
- Quick Approval & Disbursal: Funds are credited within 48 hours of approval.
- No Collateral Required: Unsecured loans in India do not require any security.
- Flexible Loan Amounts: Loan limits up to ₹40 lakhs, depending on eligibility.
- Competitive Interest Rates: Best personal loan interest rates starting from 10.49% per annum.
- Minimal Documentation: Easy and paperless application process.
- Prepayment Facility: Allows early repayment with nominal charges.
Conclusion
If you earn ₹100,000 per month, you can get a personal loan of up to ₹20 lakhs from ABFL PL, depending on your credit profile and existing financial obligations. By maintaining a good credit score and minimizing existing debt, you can maximize your loan eligibility and enjoy favorable ABFL PL personal loan terms. ABFL PL provides easy and quick loan disbursals, making it a great option for urgent financial needs. For accurate details, personalized offers, and real-time eligibility checks, visit ABFL PL’s official website or consult a bank representative.