Minimum Personal Loan Amount You Can Avail in the Current Market Scenario


The Covid-19 pandemic changed the way everyone viewed and managed their personal finances. People with steady jobs and reliable incomes also didn’t know when things would take a turn for the worse. This forced many to become more conservative about their finances. Saving took precedence over lending and spending.

Even though the devastating second wave of Covid-19 is behind us and the economy seems to be recovering, the current market scenario is still very volatile. And with the festive cum wedding season upon us, you must also be getting ready for some planned and unplanned expenses. But should that mean that it’s okay to tap into your savings, or is there a better way to manage your finances?

In the current market scenario, taking short to mid-term personal loans for covering major expenses could be the best way to proceed. Here’s why that is.

Personal Loan Interest Rates Are Very Low

Firstly, lenders have reduced their interest rates significantly to bring conservative and hesitant borrowers back into the market and encourage them to lend for major expenses. Personal loan interest rates can range anywhere between 11% to 24% annually, and tenures are available between 3 months to 6 years.

When compared to credit cards that charge 24%-30% annually (or 2%-2.5% per month), these rates are very lucrative. Also, instead of breaking your investment instruments such as fixed deposits, bonds, or funds to cover your short-term expenses, taking out a low-interest personal loan makes much more economic sense.

Personal Loan Eligibility Is Relaxed

Personal loans are unsecured loans and don’t require any kind of collateral to avail. The personal loan eligibility criteria are also much more relaxed when compared to other forms of debt. Typically, lenders only consider the following parameters to check your eligibility:

  • Whether you are between the age of 21-60 years (service) or 21-65 years (self-employed)
  • Whether your monthly income is above Rs. 15000
  • Whether you have been employed for at least 6 months (1 year for some lenders)
  • Whether your CIBIL score is above 700 to show good creditworthiness

Thus, even if you don’t plan to take a personal loan well in advance, you can easily avail of them when the time arises. In a turbulent market scenario like the current one, that is highly reassuring.

Personal Loan Repayment Can Be Planned and Flexible

Lenders also check your repayment ability before extending the loan to you. They check your fixed expenses or obligations, outstanding debts or loans, and disposable income that you will have on a monthly basis to pay back your personal loan. This helps them in defining the loan amount to be approved and the EMI amount to be set.

But before even applying for a loan, you can easily check your EMI amount by using a personal loan EMI calculator. In fact, by using a personal loan EMI calculator, you can also plan the loan tenure, the EMI amount you wish to bear every month, and the minimum or maximum personal loan amount you should take.

The Minimum Personal Loan Amount You Can Avail

With all these favorable conditions, taking a personal loan to cover major expenses in the current market scenario is much better than tapping into your savings or investments. Typically, lenders can offer a minimum amount of Rs. 75000 and a maximum of Rs. 25 lakhs in personal loans.

Even if your current requirement is less than or equal to Rs. 75000, it’s better to apply for and avail of this minimum amount. That way, you can easily pay for your visible and planned expenses but still have some surplus to cover any contingencies or unplanned expenses.

Finally, once the market scenario stabilizes and you have taken care of your financial needs, you can easily pay off the personal loan in structured installments. All this time, your savings and investments will remain untouched and grow as planned.


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