All Information about Minimum Income to have a Personal Loan

Whenever you’re scouting for a competitive personal loan, it is intelligent to know the requirements before applying for a personal loan. It is always referred to as get quick approval within minimum documentation. However, the greatest concern here is how much do you actually have as the minimum loan amount.  With most banks, the mandate is to keep the eligibility at about a minimum income of Rs.15,000.

Now, it is crucial to understand the rationale behind this threshold as minimum income. Although, the minimum salary needed for a personal loan depends completely on the lender. Let’s say if you’re looking for an HDFC personal loan, then the income required will range easily between 15000-20000, also based on the location of the individual.

So, it is okay to say that an instant personal loan of an amount 2 lakhs can easily be procured with a basic salary of Rs. 10000.

The loan approval and disbursal completely relies upon the following mentioned factors: 

• One needs to be an individual
• One needs to be above 25 years
• One needs to have a good credit score

However, it’s extremely crucial to know well about all personal loan options!

So, what is the minimum salary for taking a personal loan?

The minimum salary required for an instant personal loan is at the discretion of financial institutions and banks (NBFCs too). So, depending on the chosen financial institution, you can base your loan decision. All the relevant institutions have unique eligibility criteria and to which one must abide. So, yes this will also be determined by the place of sanction.

How does the minimum income threshold vary?

In a Tier 1 location, the minimum income clause is much higher owing to the spiraling high standard of living. An income in the range of about Rs.30000-40000 can be estimated. However, for a Tier II location. The minimum required income would be about Rs. 30000 and Rs. 25000 in the Tier 3 cities.

Since, we realize instant personal loans are quite insecure which does not need any pledging or mortgaging. Therefore, a credit score of over and above 750 must be an add-on. This high score determines the repaying capacity of the borrower and how his credit standing looks in the market. This will be helpful for the financial institution to know whether it’s feasible to lend money or not.

Read More: Which loan app in India can give an instant personal loan?

What matters over and above the minimum income criteria?

Also, once you have the minimum income criteria fulfilled, it is still not guaranteed to have the personal loan approved. The sustained liabilities and debt-income ratio plays a huge role. There exists a correlation between income and other credit rules also. A personal loan request with minimum income matched and not paid installments will not have his loan approved. A huge debt proportion can eat up a significant proportion of income, which in turn will impact the repayment capacity.

In nutshell

Being an unsecured loan, it requires individuals to meet all eligibility criteria and utilize for any stated purposes. Lenders generally look at a credit score of 750+ and a potential source of income. For salaried individuals, income plays an integral role in a loan approval.