Get a Personal Loan for Salary of Rs. 12000

personal loan salary 12000

Are you a salaried employee earning a monthly income of 12,000? Are you looking for financial assistance to manage an emergency or cover unexpected expenses? If yes, then personal loans can be a great option for you.

In today’s fast-paced world, financial stability is a top priority. Whether you are a young professional just starting out or an experienced worker looking for a boost, personal loans can be a great way to help you achieve your goals. In this post, we’ll explore the basics of personal loans for Indians with a monthly income of 12,000.

personal loan

What is a Personal Loan??

First, let’s look at what personal loans are and how they work. Personal loans are a type of loan that you can use for any purpose, from consolidating debt to paying for a wedding or home renovation. They are typically unsecured loans, which means that you don’t need to put up any collateral to get approved. Instead, your credit score and financial history will be the main factors considered. Now, let’s dive into the details of personal loans for Indians with a monthly income of 12,000. The first thing you need to know is that eligibility requirements vary depending on the lender you choose. However, there are some general guidelines that most lenders follow.

Eligibility Criteria for a Personal Loan with a 12,000 Salary:

To be eligible for a personal loan with a 12,000 salary, you need to meet the following criteria:

  • Minimum Age: Usually, you should be between 21 to 60 years old.
  • Employment Status: You should be a salaried employee or a self-employed individual.
  • Credit Score: Generally, your credit score should be above a certain threshold, which varies from lender to lender.
  • Monthly Income: Your monthly income should meet the lender’s minimum requirement.

Also, Read: How to Get a Personal Loan with a Salary of ₹20,000?

Documents Required for a Personal Loan with a 12,000 Salary:

To apply for a personal loan, you need to submit the following documents: –

  • Identification Proof: Aadhaar card, PAN card, passport, or voter ID.
  • Income Proof: Salary slips, bank statements, or income certificates.
  • Address Proof: Utility bills or rental agreement.
  • Employment Proof: Employment certificate or appointment letter.

Interest Rate On A Personal Loan For Salary 12,000 Earners:

The interest rate on personal loans for salary 12,000 earners can differ between lenders. We have curated a table with the interest rates our lending partners offer so that you can get a better understanding:




0% to 48.0% per annum


2.50% per month


1.08% per month onward


24.0% to 30.0% per annum


10.75% to 19.0% per annum

Bajaj Finance

11.0% to 39.0% per annum


10.50% to 24.0% per ammum

Axis Bank

10.49% to 22.0% per annum

Kotak Mahindra Bank

10.99% per annum onward


10.49% to 36.0% per annum

Calculate EMI of a Personal Loan with a Salary of Rs. 12000

Steps to Apply for a Personal Loan with a 12,000 Salary:

Follow these steps to apply for a personal loan:
1. Research: Compare lenders offering personal loans for your income bracket. Look for lenders that offer flexible repayment plans, low interest rates, and fast disbursal of funds.

2. Check Eligibility: Before applying for a personal loan, check your eligibility using online calculators or by directly contacting the lender.

3. Gather Documents: Collect all the necessary paperwork to streamline the application process. Make sure you have all the required documents, including identification proof, income proof, address proof, and employment proof.

4. Apply Online or Offline: You can apply for a personal loan online by visiting the lender’s website or by visiting a branch near you. Make sure you fill in all the required details accurately and attach all the necessary documents.

5. Await Approval: After submitting your application, wait for the lender’s decision. The approval process can take anywhere from a few hours to a few days, depending on the lender.

How Much Can I Get a Personal Loan If My Salary Is 12,000?

If your monthly salary is 12,000, you might be eligible for a personal loan, but the amount you can borrow and the terms of the loan will vary significantly depending on the lender and other factors such as your credit score, existing financial obligations, and employment status.

1. Loan Amount: Depending on the lender and your financial profile, you could potentially be eligible for a loan ranging from ₹50,000 to ₹3,00,000.

2. Interest Rates: The interest rates can vary widely based on the lender and your credit profile. For instance, interest rates for personal loans can range from about 10.49% to as high as 48% per annum, depending on the financial institution and your credit health.

3. Eligibility Criteria: Key factors affecting your eligibility include your credit score, debt-to-income ratio, and the stability of your employment. Maintaining a good credit score (preferably above 750), a low debt-to-income ratio, and stable employment can improve your eligibility and the terms of the loan​​.

When lenders evaluate how much loan an individual can afford, they commonly use two methods: the Fixed Obligation to Income Ratio (FOIR) and the Multiplier Method. Both methods help lenders assess the risk and determine the maximum loan amount that a person is capable of repaying based on their income and other financial commitments.

Examples of FOIR and Multiplier Methods

FOIR Method Example

Let’s assume Rupesh earns a monthly salary of ₹12,000 and has existing monthly obligations (like EMIs for other loans) of ₹2,000.

Calculation of FOIR:

Assuming lenders prefer a maximum FOIR of 50%, the amount available for new EMI payments would be:

  • Available for new EMI=50% of income−Current obligations
  • Available for new EMI=(50%×12000)−2000=6000−2000=₹4000

Assuming a loan with an interest rate of 12% per annum and a term of 5 years, the maximum loan amount Rupesh could afford under FOIR method (using an EMI calculator) would roughly be around ₹75,000.

Multiplier Method Example

In the multiplier method, if the bank uses a conservative multiplier of 3 for Rupesh’s income bracket:

Calculation using Multiplier:

  • Maximum loan amount=Annual Income×Multiplier
  • Maximum loan amount=(12000×12)×3=432000

This calculation assumes that Rupesh has no other debt obligations, and the bank considers his full annual income potential without considering his existing debts.

From the Above Examples:

Under the FOIR method, if Rupesh has ₹4,000 available monthly for new EMI, and based on typical lending rates and tenure, he could be eligible for a loan of approximately ₹75,000.

Under the Multiplier method, theoretically, he could be eligible for up to ₹4,32,000. However, this is an optimistic figure and does not consider any other financial obligations or his ability to actually service such a large loan on his salary.

Realistically, lenders would be cautious and possibly offer a lower amount than the maximum calculated by the multiplier method, taking into consideration Rupesh’s total financial profile, including his ability to repay without financial distress.

Benefits of Personal Loans for 12,000 Salary Earners:

Personal loans offer several benefits, including: –

  • Flexible Financial Assistance: You can use personal loans to cover unexpected expenses or manage immediate financial needs.
  • Manageable Repayment Plans: You can choose a repayment plan that suits your budget. Lenders offer flexible EMI options that allow you to repay the loan in easy installments.
  • Build Credit: Responsible repayment of personal loans can boost your credit score. This, in turn, can help you get better interest rates on future loans and credit cards.
  • Quick Disbursement: Lenders offer fast disbursal of funds for urgent requirements. You can get the loan amount credited to your bank account within a few hours of approval.

Also, Read: How Much Personal Loan Can I Get On Rs 25,000 Salary?

Tips Before You Apply For Personal Loans for 12,000:

Now that you know the basics of personal loans for Indians with a monthly income of 12,000, let’s talk about some tips for borrowing responsibly.

First, make sure to only borrow what you need. It can be tempting to take out a larger loan, but this will only increase your monthly repayments and could lead to financial problems down the road.

Second, make sure to read the terms and conditions carefully before signing the loan agreement. This will help you understand the interest rate, repayment period, and any other fees or charges that may apply.

Third, make sure to budget for your monthly repayments. This means taking into account your other expenses, such as rent, utilities, and groceries, and making sure that you can afford to make your repayments on time.

Finally, if you’re struggling to make your repayments, don’t hesitate to reach out to your lender. Many lenders offer repayment assistance programs that can help you manage your debt and avoid defaulting on your loan.

To sum up, personal loans can be a great way to achieve your financial goals, but it’s essential to borrow responsibly. As an Indian with a monthly income of 12,000, you may find it challenging to get approved for a personal loan, but there are lenders who are willing to work with you. You can also visit Credmudra, we are loan matchmakers and will make your loan approval process very easy.

Just remember to do your research, gather the necessary documents, and budget for your repayments, and you’ll be on your way to financial stability in no time!

Also, Read: How To Get A Personal Loan On Aadhaar Card?


1. What’s the Minimum Credit Score Required?

The minimum credit score required varies from lender to lender. However, generally, a credit score of 650 or above is considered good.

2. Can I Apply with a Co-Applicant to Increase My Eligibility?

Yes, you can apply with a co-applicant to increase your eligibility. However, make sure that your co-applicant has a good credit score and meets the lender’s eligibility criteria.

3. How Long does the Approval Process take?

The approval process can take anywhere from a few hours to a few days, depending on the lender.

4. Are there Penalties for Early Repayment?

No, there are no penalties for early repayment. In fact, repaying the loan early can help you save on interest payments.

5. Can I get a Loan without a Credit History?

It’s difficult to get a loan without a credit history. However, some lenders offer loans to individuals with no credit history, but the interest rates may be higher than usual.

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