Unsure if Your Income is Enough to Get a Personal Loan? Here’s how your income affects your loan application
11 December, 2024
Synopsis
- Personal Loans are collateral-free loans where one of the eligibility criteria you must fulfil is minimum income.
- Typically, salaried employees with a minimum net monthly salary of ₹25,000 are eligible for Personal Loans.
- Self-employed individuals can provide their income tax returns as income proof.
Personal Loans are meant for your personal use, but your income plays a critical role in determining the eligibility and approval of your Personal Loan application. Banks have fixed criteria to check the minimum salary eligibility for Personal Loans to ensure the borrower is financially capable of repaying the borrowed funds. Let us see some vital points that encompass the Personal Loan eligibility criteria.
Why Income Eligibility Matters
A Personal Loan is an unsecured loan. This means that you are not required to pledge collateral to apply for the loan. Banks ascertain your ability to return your borrowed funds based on your income.
What is the Minimum Salary for Personal Loan Eligibility?
Banks have a set requirement for minimum salary for Personal Loan applications. For instance, HDFC Bank has a minimum salary requirement of net ₹25,000 per month. Meeting the minimum salary for a Personal Loan may increase the chances for loan approval.
Factors That Influence Your Personal Loan Application
While income is critical for loan eligibility, crucial parameters like employment stability, existing loans and most importantly the credit score of an individual are determining factors of Personal Loan eligibility.
Apply for an HDFC Bank Xpress Personal Loan
Customers can avail of Xpress Personal Loans up to ₹40 Lakh for flexible tenures of up to 5 years. What’s more, the entire process is digital. If approved, the loan amount will be disbursed to your bank account within 4 working days. To check your loan eligibility, click here.
Apply for Xpress Personal Loan
FAQs
What is the minimum salary required for a Personal Loan?
The minimum salary requirement for a Personal Loan is typically upwards of ₹25,000. For Instance, HDFC Bank’s minimum salary eligibility for Personal Loan is ₹25000.
What is the lowest salary for a Personal Loan?
Typically, the lowest salary threshold for a Personal Loan differs across banks as well as the geographical location of the bank and the borrower.
Can I get a loan if my salary is low?
Several banks like HDFC Bank give loans to low-income individuals contingent to them meeting all eligibility criteria.
Can I get a Personal Loan with a 25k salary?
Yes, ₹25,000 minimum salary qualifies for the minimum salary eligibility for Personal Loan with most lenders like HDFC Bank.
Can I get a Personal Loan with a 15k salary?
Typically, lending banks have a criteria for minimum salary for Personal Loan. If the minimum salary required by your preferred lender is ₹15,000, your loan application may be approved.
Apply for Xpress Personal Loan
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
