Many people in India believe that personal loans are only for high-income earners. But the truth is, you can get a personal loan even if your monthly salary is ₹20,000, provided you meet certain basic conditions.
In this blog, we’ll explain how to get a personal loan on ₹20,000 salary, eligibility criteria, documents required, best lenders, and a real-life example to help you understand the process clearly.
Can You Get a Personal Loan on ₹20,000 Salary?
Yes, most banks and NBFCs in India offer personal loans starting from ₹15,000–₹20,000 monthly salary.
However, the loan amount may be limited, usually between ₹50,000 to ₹2.5 lakh, depending on your profile.
Basic Eligibility Criteria
If your salary is ₹20,000 per month, you should meet the following conditions:
Age: 21 to 58 years
Employment: Salaried (private company / MNC / reputed firm)
Monthly Salary: Minimum ₹20,000
Work Experience:
Total: At least 1 year
Current job: Minimum 6 months
Credit Score: 650 or above (important)
✅ A higher credit score increases approval chances and reduces interest rates.
Documents Required
You’ll need the following documents:
Aadhaar Card / PAN Card
Salary slips (last 3 months)
Bank statement (last 6 months)
Employment ID card or offer letter
Passport-size photograph
Best Banks & Apps Offering Loans on ₹20,000 Salary
Here are some popular options:
Banks
HDFC Bank
ICICI Bank
Axis Bank
Kotak Mahindra Bank
NBFCs & Loan Apps
Bajaj Finserv
Tata Capital
MoneyTap
PaySense
KreditBee
EarlySalary
NBFCs are more flexible but may charge slightly higher interest.
Interest Rate You Can Expect
Banks: 10.5% – 18% per annum
NBFCs / Apps: 16% – 30% per annum
Interest rate depends on:
Credit score
Employer reputation
Existing loans or EMIs
Real-Life Example
Example: Rakesh, Age 26, Private Job Employee
Monthly Salary: ₹20,000
Company: Small IT firm
Work Experience: 2 years
Credit Score: 720
City: Guwahati
Loan Applied:
Bank/NBFC: Tata Capital
Loan Amount Approved: ₹1,50,000
Interest Rate: 17% per annum
Tenure: 36 months
EMI Calculation:
Monthly EMI: Approx. ₹5,300
Approval Time: 2 days
Disbursal: Within 24 hours after approval
👉 Because Rakesh had a good credit score and stable job, he got the loan easily despite a modest salary.
Tips to Increase Loan Approval Chances
Maintain a good credit score (700+)
Avoid multiple loan applications at once
Clear or reduce existing EMIs
Apply with your salary account bank first
Choose a shorter loan tenure if possible
Things to Keep in Mind
Don’t take a loan if EMI exceeds 40% of your salary
Compare interest rates before applying
Read foreclosure and prepayment charges carefully
Avoid unknown loan apps
Conclusion
Getting a personal loan on a ₹20,000 salary in India is absolutely possible. With the right credit score, stable job, and proper documentation, banks and NBFCs are willing to lend.
Before applying, always compare lenders, check EMI affordability, and borrow only what you truly need.
