How Do I Get a Loan Amounting To Rs. 1 Lakh?

How Do I Get a Loan Amounting To Rs. 1 Lakh? – FinanceTillEnd

The small personal loan is in huge popularity in India. These loans are useful to meet immediate needs, whether that is purchasing a pricey item, paying for utility bills, or in financial issues such as paying fees for higher education or obtaining medical care.

The loan’s unsecure nature and flexibility when choosing the term of repayment makes small loans the most preferred choice of those who need to borrow. But, if you’ve not had the opportunity to apply for these loans prior to now and are wondering if I can receive a loan of one lakh, here’s the information you need to be aware of.

How do I get a loan amounting to Rs. 1 Lakh?

Many factors affect the likelihood of approval for personal loans. Here is the list of a few of these.

Employment history and income

Your earnings and employment background aids the lender in assessing your ability to repay. The income minimum requirements vary based upon the lending institution and amount required. For instance, if you only require 1 lakh, or Rs. 1 lakhfor your loan, the income requirements will be significantly smaller than an amount of that is Rs. 5 lakh.

Additionally, you will need to prove your reliability when you are employed. Most financial institutions expect that borrowers possess a minimum of 6 months of experience with their current employer , and having a total work knowledge of one full year.

Ratio of debt-to-income

This factor is connected to the prior aspect. The debt-to-income (DTI) ratio shows how the majority of your income is used to pay current debts. Financial institutions typically prefer an DTI that is less or equivalent to 50.

The reasoning behind this limit is that having a lower DTI suggests that you still have some funds in savings, even after you’ve paid off the current obligations to your debt.

In the example above, suppose you need to borrow Rs 1 lakh, with a 12 month payment plan. In the event of obtaining this loan, the lender will charge 12.5 percent interest on your credit card and an EMI of 8,908. In this instance the lender will require that you earn an income per month in the range of Rs.17,000 or more in the event that you don’t have any debts.

Credit score

The credit score as well as the history of your credit play an essential factor in loan approval. Many factors are taken into account by credit bureaus in order to determine your score on credit. 

One of them is the credit utilisation ratio, your the debt portfolio, your previous and present debt repayment pattern and so on. The lender is likely to approve the loan of Rs. 1 lakh immediately if you have good credit and no past history of defaults. 

You should however, check your credit report at least each year to look for any discrepancies and devise the best way to deal with any issues that could be affecting the score of your credit.


Your age is a reflection of your future and present earning potential. Many people lose their earnings when they retire and are dependent on pension or children. In the same way, if you’re too young and in the high school years, you may not have a source of income, and depend on the parents to meet your necessities. 

Based on these assumptions, a number of institutions have set minimum and maximum ages of 58 and 21 respectively, to accept personal loans.

Also Read

What Is Times Interest Earned?

What Is Put Call Parity?

What Is Effective Gross Income?


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