Everyone benefits greatly from having a little extra credit. Whether you’re organising your dream wedding, taking a much-needed family trip, buying the newest smartphone your loved one has requested, or dealing with medical problems, a personal loan can fund it all.
Personal loans also work in times of emergencies which can arise at any time without warning. So, a personal loan is an excellent choice to assist you in meeting your immediate financial demands rather than prematurely withdrawing your investments (with penalties).
With a personal loan, you can use the funds however you see fit, making it easier to fulfil all your financial commitments. In addition, it offers no-collateral fast access to money and is the most popular lending solution for dealing with challenging monetary needs.
Learn about the minimum salary requirements for personal loans as it affects your loan eligibility.
A personal loan is an effective way to raise money to cover scheduled expenses or unexpected bills. As a result, numerous online and offline non-banking financial companies (NBFCs) have created a simple loan application process. However, there are some qualifying requirements, particularly regarding the minimum salary criterion.
Personal Loan Requirements
Personal loan requirements differ from those for secured loans like home loans. The following are the broad needs and limitations, while the specifics may vary on an individual case basis:
- You should be between 21 to 60 years
- You should be a Resident Indian
- You should be a salaried or self-employed professional
- You should have a minimum work experience of one year
- You must have a minimum salary of INR 20,000
What is the Minimum Salary for Personal Loans?
There is no exact minimum salary requirement for obtaining a personal loan fixed by RBI for every NBFC. However, it differs among lenders on an individual basis after taking into account several elements. For residents of Mumbai and Delhi, the minimum monthly salary requirement for personal loans is INR 25000, and the minimum monthly salary requirement for those living in other locations is INR 20,000. Lenders might not take applicants with cash salaries into account.
The lender considers many aspects when you apply for a personal loan based on your salary to evaluate whether your income satisfies the eligibility standards. One of the deciding factors is:
1. Other Credits
Your minimum salary for personal loan will rise if you owe money on credit cards, loans, or car loans.
2. Credit History
Your credit history heavily influences your loan eligibility. A strong credit history (usually over 700) demonstrates your ability to repay loans, which supports your eligibility requirements. On the other hand, if your credit score is low, the NBFC can reject your application, or the interest rate on your personal loan will likely be high if it is approved.
3. Employment Track Record
Working for a reputable organisation for a long time suggests that your position is secure. Unlike self-employed professionals, salaried applicants probably have a lower criterion for a minimum salary. The justification for this is that salaried employees have a steady and predictable source of income for repayment security. However, those who are self-employed may not have a consistent monthly income.
4. Age
For employed people, the age limit to apply for a loan is between the ages of 21 and 60. The maximum age is 65 if you run your own business.
5. Work status
You must be employed for one year or have owned a business for at least two years.
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Conclusion
To check your loan eligibility, use a personal loan eligibility calculator on the websites of leading NBFCs, like Fullerton India, to calculate the exact amount that applies to your particular situation. You must enter a few facts, such as your age, location, current pay, years of employment, etc., and the calculator will tell you how much of a personal loan you may get based on your income.
Knowing your eligibility (considering the minimum salary for a personal loan) before you contact a lender puts you in a better position to bargain with the lender about the terms and conditions of the loan.
