Your PAN card is more than an identification document. It is also a gateway to understanding your credit health. With your PAN card, you can get valuable insights into your credit history, including details about your active loans. This can help you stay informed about your outstanding debts, repayment schedules, and other aspects of your credit profile.

So, if you are wondering, ‘How to check all of my loan details?’, it is the PAN card you need to turn to. Let’s go through the various methods to check active loans using your PAN card and explain why it is important to do so regularly.

Ways to Check Active Loans Linked to Your PAN Card

There are mainly three ways you can check your loan details using your PAN card: 

1. Via Credit Bureaus

• Credit bureaus like CIBIL maintain detailed credit reports for individuals. These reports include information about all active loans linked to your PAN. 

• You can create an account, verify with OTP (one-time password) and enter your PAN details. Once you create an account, you can view your active loans, credit card accounts, and repayment history. 

• Credit bureaus regularly update their records. Periodically checking your credit report can help you stay updated about your active loans and any changes in your credit status.

 2. By Contacting the Bank

• You can visit the bank where you have taken loans and request information on your active loans. Provide your PAN card as identification to access your loan details.

• You can also reach out to customer service to get assistance to check loan details or to request a loan statement. Provide your PAN and other relevant information to receive a detailed statement of your active loans.

3. Via FinTech Apps

• Nowadays, many FinTech apps offer services that allow you to check loan details online. These apps often integrate with credit bureaus and banks to provide a view of your financial status.

• All you need to do is create an account and enter your PAN to get access to your active loans and repayment history.

Now that you know the answer to, ‘How to check all of my personal loan details?’, let’s see why it is important to do so. 

Why You Should Check Active Loans Regularly?

By checking your active loans regularly, you can enjoy the following benefits:

1. Better Financial Management

Regularly checking your loan details helps in better financial management. You can plan your expenses and savings better when you are aware of your outstanding debts.

2. Avoiding Default

Staying informed about your repayment schedules helps avoid defaults. Making payments on time improves your credit score and helps maintain a good relationship with banks.

3. Detecting Errors

Regular checks can help you detect any errors or discrepancies in your loan accounts. If you find any mistakes, you can report them to the lender or credit bureau to get them corrected.

4. Credit Health

Knowing your active loans and responsibly managing them leads to better credit health. This is crucial when you are applying for credit facilities in the future. 

Also Read: Is Opting for Pre-Closure of a Personal Loan Right Option?

Conclusion

Staying informed about your loan details helps in managing your debts responsibly and avoiding financial pitfalls. It ensures that you are always aware of your financial obligations and can make informed decisions.

To manage your loans more responsibly, consider using the Personal Loan Calculator from IndusInd Bank. It gives an estimate of EMIs based on the loan amount and tenure you enter. 

IndusInd Bank also offers Personal Loans with benefits such as no collateral requirement, easy application and instant disbursal, competitive interest rates, and more. 

Apply for an online Personal Loan and start enjoying these benefits now! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.

Financial stability starts with understanding where your money goes. This is where monthly budget planning comes in. A well-structured budget helps you to track income, allocate funds for expenses, and work towards your financial goals. Whether you are saving for a particular goal or simply aiming for peace of mind, planning a monthly budget is the first step towards financial well-being. 

This guide will walk you through the basics of planning a monthly budget and how to use financial tools like personal loans to optimise it.

Steps to Plan a Monthly Budget

A monthly budget is a financial plan that outlines your expected income and expenses for over a month. Here’s how to get started with it:

1. Calculate Your Monthly Income

Begin your monthly budget planning by calculating your total income for the month. Include all sources of income, such as salary, freelance work, rental income, and any other earnings. Use this net income (after taxes) as the base for your budget. 

2. List All Monthly Expenses

Next, list all your monthly expenses. This includes fixed expenses such as rent, mortgage, utility bills, any loan EMIs or insurance premiums, and subscriptions. Also include variable expenses like groceries, dining out, transportation, and other types of spending. 

In addition, note any funds allocated towards emergency funds, retirement accounts, and other investments. 

3. Categorise and Prioritise Expenses

Once you have listed your expenses for planning a monthly budget, categorise and prioritise them. Distinguish between essential expenses (needs) and non-essential expenses (wants). 

Prioritise your needs to ensure your basic requirements are met first. Also, make it a priority to set aside money for any financial goal you may have, like saving for a holiday or purchasing a home. 

4. Track Your Spending

Tracking your expenses regularly is crucial for staying within the budget. Use budgeting tools like apps, spreadsheets, or even a notebook to track your expenses. Adjust your budget for the next month if necessary and look for areas where you can cut back or save more.

5. Use Budgeting Tools

Financial planning apps can simplify the budgeting process, which makes it easier to manage your finances.

For instance, if you have or are planning to take a personal loan, consider using the Personal Loan Calculator from IndusInd Bank. It allows you to estimate your monthly EMIs and add them to your budget accordingly. 

If you are falling short on funds to balance your monthly expenses and income, a personal loan can be of great help. 

How to Utilise a Personal Loan for a Monthly Budget?

Here’s how you can use a personal loan to balance your monthly budget:

1. Debt Consolidation

If you have multiple high-interest debts, consolidate them by taking a single personal loan with a lower interest rate. This can reduce your monthly payments.

2. Large Expenses

You can use a personal loan to cover major expenses included in your monthly budget planning, such as home renovations or education costs. This helps to spread the cost over several months and makes it more manageable.

3. Financial Cushion

A personal loan can provide a financial cushion for times when unexpected expenses crop up. This helps you avoid dipping into your savings or emergency funds.

Also Read: How Do You Choose Between a Personal Loan Vs Using Securities As Collateral For A Loan?

Conclusion

Effective monthly budget planning is an essential aspect of financial health and stability. By reviewing your income, tracking expenses, and setting realistic goals, you can create a budget that empowers you to achieve your financial aspirations.

Optimise your budget further with IndusInd Bank’s range of Personal Loans. Whether it is a planned expense or an emergency, you can apply for an Instant Personal Loan and get access to funds quickly. Enjoy competitive interest rates, flexible repayment options, and more. 

Apply for an Instant Loan with IndusInd Bank now! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.

When you’re planning to apply for a personal loan, your income plays a key role in determining whether you’ll get approved, how much you can borrow, and at what interest rate. One term that often pops up during this process is CTC, or Cost to Company. But what exactly does it mean, and why do lenders care so much about it? Let’s break it down in detail and understand how CTC influences the personal loan application process.

What is CTC? What are its Components?

CTC, short for Cost to Company, is the total amount an employer spends annually on an employee. This figure includes not just your in-hand salary but also various perks, allowances, bonuses, and retirement benefits that form part of your compensation package. It’s a comprehensive figure and not necessarily the amount you take home each month.

For lenders, CTC offers a broader picture of your income and financial stability, helping them assess your loan repayment capacity more accurately.

Key Components of CTC

Your CTC is a mix of fixed, variable, and additional perks or retirement benefits. Let’s break it down to understand what each part includes.

Fixed Salary Components of CTC

These are the stable, predictable parts of your salary—paid regularly and often used to calculate your monthly take-home pay.

Basic Salary

This is the core component of your salary. It is fully taxable and forms the basis for other allowances like HRA and provident fund contributions.

House Rent Allowance (HRA)

HRA is given to employees living in rented accommodation. This allowance can offer tax benefits, depending on your city of residence and rent amount.

Special Allowance

This is a broad category that includes various miscellaneous payments, which do not fall under any specific head. It’s fully taxable and varies from company to company.

Variable Salary Components of CTC

These components depend on performance, targets, or other criteria and are not fixed each month.

Incentives or Bonuses

Performance bonuses, sales incentives, or annual appraisals fall under this category. Since they’re not consistent, lenders consider them secondary when evaluating loan eligibility.

Leave Travel Allowance (LTA)/Leave Travel Concession (LTC)

LTA covers travel expenses incurred during holidays within India and can be claimed as a tax exemption under certain conditions.

Other Perks and Benefits

These are non-monetary or additional monetary benefits that form part of the total CTC but may not directly reflect in your take-home salary.

Phone and Internet Allowance

Many companies reimburse your mobile and internet bills, especially in hybrid or remote work settings. These are tax-efficient components of CTC.

Indirect Elements

These include training programs, food coupons, subsidized meals, or wellness programs that enhance your work experience but don’t add to your direct income.

Conveyance Allowance

This allowance is meant to cover your daily commute expenses and is usually a fixed monthly amount. It may also offer some tax benefits.

Medical Allowance

This covers medical expenses up to a certain limit annually and can also be used for claiming tax deductions.

Retirement Benefit Components in CTC

These elements secure your financial future and are calculated as long-term benefits rather than monthly earnings.

• Provident Fund (PF): A mandatory savings scheme where both employee and employer contribute monthly.
• Gratuity: A lump sum paid by the employer as a token of appreciation after five years of continuous service.
• Pension Contributions: If part of your employment contract, these are also factored into your total CTC.

How to Calculate CTC?

Now that you know what CTC is in your salary slip, let’s look at how to calculate it. 

Using a simple illustration for this purpose: 

1. Basic Salary: ₹5,00,000 per annum
2. HRA: ₹2,00,000 per annum
3. Medical Allowance: ₹15,000 per annum
4. Transport Allowance: ₹24,000 per annum
5. Bonuses and Incentives: ₹50,000 per annum
6. Employer’s PF Contribution: ₹60,000 per annum
7. Gratuity: ₹20,000 per annum
8. Perquisites: ₹30,000 per annum

Total CTC = Basic Salary + HRA + Medical Allowance + Transport Allowance + Bonuses + Employer’s PF + Gratuity + Perquisites

Total CTC = ₹5,00,000 + ₹2,00,000 + ₹15,000 + ₹24,000 + ₹50,000 + ₹60,000 + ₹20,000 + ₹30,000

So, here the total CTC = ₹8,99,000 per annum. 

You can use the above illustration to calculate what your current CTC is. 

How Does CTC Affect Your Personal Loan Application?

Your CTC plays a crucial role in determining your loan eligibility and the amount you can borrow. Here’s how:

·         Loan Eligibility

Banks assess your repayment capacity based on what your current CTC is. A higher CTC translates to a higher income. This can increase your chances of loan approval.

·         Loan Amount

Your CTC influences the loan amount you are eligible for. A higher CTC often allows you to borrow a larger sum.

·         Interest Rates

A healthy CTC may sometimes lead to more favourable interest rates on your personal loan.

Hence, when you apply for a personal loan, banks will probably ask, “What is your current CTC?”. This information helps the bank evaluate your financial stability and determine the loan terms it can offer. 

To make your repayment strategy more effective, consider using a Personal Loan Calculator from IndusInd Bank. This tool provides an estimate of your EMIs so that you can choose the loan amount and tenure as per your budget. 

Also Read: Top-Up Loan vs. Personal Loan – Which One is the Best Option?

Summing Up

Understanding your CTC goes beyond just checking your annual salary figure. It plays a crucial role in how lenders perceive your ability to repay loans and manage your finances. Whether you’re planning a big purchase, consolidating debts, or funding a personal milestone, knowing how your salary structure influences your personal loan eligibility can help you make better financial decisions.

Applying for a personal loan is more than just filling out a form and waiting for money to hit your account. Before the funds are disbursed, lenders issue a document called a personal loan sanction letter. While many borrowers overlook this step in the loan process, understanding what a sanction letter is—and why it matters—can save you from surprises later.

Let’s walk through everything you need to know about a personal loan sanction letter, its features, contents, and importance.

What is a Personal Loan Sanction Letter?

• A personal loan sanction letter is an official document a bank issues after it approves your loan application. 

• Receiving a loan sanction letter means the bank has reviewed your application. They have verified your details and will provide the sanctioned loan under the specified terms.

• Note that the loan sanction letter is not the final loan agreement. However, it is a major step towards disbursal. 

• It provides a clear understanding of the loan offer. With its help, you can review and accept the terms before the disbursal of the funds.

Features of Personal Loan Sanction Letter

• Provisional Approval: It is a conditional approval, not the final confirmation of disbursement.
• Time-Bound Validity: The sanction letter is valid for a limited period (usually 15–30 days).
• Non-Transferable: It is issued specifically to the applicant and cannot be used with other lenders.
• Customised Terms: The terms mentioned in the letter are tailored to the applicant’s profile—credit score, income, employer, etc.

Contents of a Personal Loan Sanction Letter

Here are the common contents you can expect to find in a personal loan sanction letter:

1.      Loan Amount

The letter specifies the loan amount the bank is willing to sanction based on your eligibility and creditworthiness.

2.      Interest Rate

It includes the interest rate applicable to the personal loan, which can be fixed or variable. Understanding this helps in calculating the overall cost of the loan.

3.      Repayment Tenure

The loan sanction letter outlines the repayment tenure too, which can range from a few months to several years.

4.      EMI Amount

The letter also includes the Equated Monthly Instalment (EMI) to give you a clear idea of your monthly obligations. 

If you want to get an estimate of the EMI before you receive the sanction letter, use the Personal Loan Calculator from IndusInd Bank. All you need to do is input the loan amount and the tenure to get an approximate EMI amount. 

5.      Processing Fees 

Any applicable processing fees, administrative charges, or other costs associated with the loan are detailed in the letter.

6.      Terms and Conditions

The letter includes various terms and conditions. This can include prepayment charges, penalties for late payments, and other relevant clauses.

7.      Validity Period

The personal loan sanction letterhas a limited validity. You must accept the loan offer and complete the formalities for disbursal within this time frame. 

Why is Personal Loan Sanction Letter Important?

The personal loan sanction letter is important for several reasons:

1.      Formal Approval

It serves as a formal confirmation of your loan application approval. It is an assurance that the bank is willing to provide the funds under specified terms.

2.      Clarity on Loan Terms

The letter provides clear and detailed information about the sanctioned loan. This can include theamount, interest rate, repayment tenure, and other terms.

Having a clear understanding of the loan terms allows you to compare offers from different lenders. You can negotiate better terms if necessary.

3. Planning and Budgeting

You can plan your finances better and ensure timely repayments when you have the requisite details outlined in the letter. This helps to avoid penalties and maintain a good credit score.

4.      Legal Protection

The sanction letter serves as a legal document. You can use it as a reference in case of any disputes or discrepancies regarding the loan terms.

Also Read: What is a Personal Loan NOC and Its Significance?

Personal Loan Sanction Letter v/s Personal Loan Disbursement Letter

Though they might sound similar, sanction and disbursement letters serve different purposes:

Think of the sanction letter as the promise, and the disbursement letter as the delivery.

How to Get Personal Loan Sanction Letter?

Here’s how you can receive your sanction letter:

1. Apply Online or Offline through the bank/NBFC of your choice.
2. Submit KYC documents, income proof, bank statements, etc.
3. Undergo credit assessment.
4. Once eligibility is confirmed, the bank issues the sanction letter, typically by email or downloadable from the bank portal.

In most digital loan journeys, this process is quick and seamless.

Documents Required to Avail Personal Loan Sanction Letter

You’ll typically need to submit:

• Proof of Identity (Aadhaar card, PAN card)
• Address Proof
• Income Documents (salary slips or ITRs)
• Bank Statements (last 3–6 months)
• Employment Proof (ID card or offer letter)

Exact document requirements can vary based on the lender and your profile.

Conclusion

A personal loan sanction letter is more than just paperwork—it’s a crucial checkpoint that gives you clarity, confidence, and control before you commit to a loan. It ensures transparency between you and the lender and provides a legal cushion in case of future conflicts.

FAQ Related to Personal Loan Sanction Letter

Can I reject loan after sanction letter?

Yes. A sanction letter is not binding. You can choose to reject the offer if you’re not satisfied with the terms or if you find a better deal.

What happens after loan sanction letter?

Once you accept the sanction letter, you’ll need to submit any remaining documents and sign the agreement. After final verification, the lender disburses the loan amount to your account.

Can you increase loan amount after sanction?

Usually, no. If you need a higher amount, you’ll have to reapply or request a reassessment. Approval depends on eligibility and creditworthiness.

Can Personal Loan be Canceled after Sanction?

Yes, it can. Either party—the borrower or the lender—can cancel the loan before disbursement. However, any processing fees already paid may not be refunded.

Securing a personal loan can help you in various ways. However, the amount you can borrow depends on your monthly income to a large extent. If you earn a salary of ₹25,000, you might wonder how much personal loan you can get. Understanding your loan eligibility based on your salary is crucial to plan your finances. 

The exact loan amount you qualify for depends on various criteria. However, knowing the basics can help you make informed financial decisions. Let’s explore more. 

How Much Loan Amount Can You Get on a ₹25,000 Salary?

The amount of personal loan depends on various factors. Banks usually consider many factors, and not just your income, to determine your loan eligibility based on salary. 

Banks offer a personal loan amount that is 10-15 times your monthly income. So, for a personal loan with a ₹25,000 salary, the amount can range from ₹2.5 lakh to ₹3.25 lakh. The banks also prefer to lend an amount where the Equated Monthly Instalment (EMI) does not exceed 40-50% of your net monthly income. So, for instance, if your monthly income is ₹25,000, the EMI should ideally be around ₹10,000 to ₹12,500. 

However, as mentioned earlier, this can vary. It is advisable to reach out to the bank through their customer support or other mediums to know how much personal loan you can get for a ₹25,000 salary. 

Factors that Determine How Much Loan You Can Get

Banks look for a variety of factors to determine how much loan you can get. These factors include:

1. Income and Employment Stability

Banks prefer borrowers with a stable job and consistent income. If you have worked with the same company for a significant period, it boosts your loan eligibility. With self-employed individuals, banks may take an average of their monthly earnings to determine loan eligibility based on salary.

2. Credit Score

Your credit score is an important factor when determining your loan eligibility. A high credit score (usually 750 and above) means good creditworthiness. It increases your chances of securing a higher loan amount.

3. Existing Debts and Repayment Capacity 

Banks also look at your debt-to-income ratio to ensure that you can manage additional debt. Existing loans or credit card dues affect your loan eligibility. Hence, it is advisable to clear existing debts or reduce them before applying for a new loan.

Banks may also ask for a few months’ bank statements to get an idea of how well you have met your past repayment schedule. Keeping your monthly obligations low can enhance your loan eligibility.

Using a Personal Loan Calculator to Know Your Loan Eligibility

You can also use a Personal Loan Calculator from IndusInd Bank to get an idea of the loan amount based on your salary. You can enter the loan amount mentioned previously (₹1.5 lakhs to ₹2.25 lakhs) and your preferred tenure. This way, you will get an EMI estimate. 

You can adjust the loan amount and tenure until you reach the EMI mentioned previously (₹10,000 to ₹12,500) or an amount that fits your budget. 

Also Read: How to Use Personal Loan for Career Development

Conclusion

Securing a personal loan for a ₹25,000 salary might be challenging. However, you can pay attention to other aspects of your financial profile to increase your eligibility. If rejected, evaluate the factors that led to it and work on those to improve your chances the next time. 

Remember to borrow responsibly. Choose a loan amount and repayment plan that aligns with your financial situation.

Visit IndusInd Bank’s website to learn more about our online Personal Loan offerings and eligibility criteria. Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.