What Is The Minimum Salary Required For A Personal Loan?
Seeking to Get a Personal Loan? Read out the article that highlights the required minimum salary for personal loans along with the factors that impact your eligibility!
Expenses for unplanned emergencies can occur at any time. To meet your immediate financial needs, a personal loan is a great alternative to prematurely withdrawing your investments (with penalties), savings and taking informal loans. This article highlights the required minimum salary for personal loans and the factors that impact your eligibility.
Who Is Eligible For A Personal Loan?The basic criteria may vary depending on the lender, the relationship with your bank, and individual circumstances. But the general requirements are:
• Minimum CIBIL score of 750
• Applicants must be at least 23 years old
• For salaried employees, the maximum age is 58 years old, and for self-employed individuals, it is 65 years old
• At least two years of experience in business or as an employee
• Minimum salary – typically determined based on several factors, including credit score, relationships with banks, etc.
What Is The Minimum Salary For Personal Loans?The predefined minimum salary required for personal loans varies with each lender. A loan officer determines whether you are eligible for a personal loan based on your salary and several other factors. Among the deciding factors are:
1. Your LocationYour resident location plays a critical role in determining your minimum salary. Metro cities such as Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, and others usually have higher minimum salary requirements than Tier-II cities and towns. Considering that these cities have higher costs of living, the lender expects you to have a larger salary to pay back the loan comfortably.
2. Housing SituationWhether you live in your own home or rent a place affects your minimum salary requirement. A rental property reduces your disposable income. Therefore, your repayment capacity decreases as well.
3. Other CreditsYour minimum salary requirements will increase if you already owe money on other credit, such as a home loan, car loan, or credit card debt.
4. Credit HistoryYou must have a good credit history to qualify for a loan. An excellent credit history demonstrates your repayment capability, allowing you to relax your eligibility requirements. If your credit history is poor or bad, your loan application will have strict criteria or may even be rejected.
5. Your Employment Track RecordWhen you work for a reputable company for several years, you may have a stable career. The lender will likely lower the minimum salary requirement if you have a stable job.
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Using our advanced loan eligibility calculator, you can find out how much loan you qualify for within a few minutes. Additionally, IIFL provides an EMI calculator for personal loans that allows you to estimate how much you can borrow based on your monthly income and expenses. IIFL Finance makes it simple to apply for a personal loan.
Frequently Asked Questions
Q1. Is it possible to get a personal loan online with a low salary?
Ans. Personal loans are available to people of all income levels, even those with low salaries. Not all lenders stipulate a minimum salary requirement for personal loans. You may be charged a high interest rate with a low loan amount.
Q2. What is the age limit for a personal loan?
Ans. An applicant must be between 23 and 65 years of age to apply for a personal loan.