Your income is the most important criteria checked by the lender when approving personal loan application. Every lender has minimum income requirement below which loans are straight away rejected.
Here’s the table showing income required for personal loan by over 27 banks/financial services companies in India:
|Name of Bank||Minimum Monthly Salary Required|
|City Union Bank||Rs. 6,500|
|Jammu and Kashmir Bank||Rs. 6,500|
|Abhyudaya Co-operative Bank||Rs. 8,000|
|The Andaman and Nicobar State Co-operative Bank Ltd.||Rs. 5,000|
|The West Bengal State Co-operative Bank Ltd.||Rs. 2,000|
|Karnataka Bank||Rs. 10,000|
|Karur Vysya Bank||Rs. 10,000|
|Indian Overseas Bank||More than Rs. 5000|
|Oriental Bank of Commerce||More than Rs. 6000|
|State Bank of India||Rs. 24,000 - Urban
Rs. 10,000 - Rural and semi-urban
|HDFC Bank||Rs. 20,000 - Urban
Rs. 15,000 - Rural and semi-urban
|Axis Bank||Rs. 15,000|
|YES Bank||Rs. 25,000|
|ICICI Bank||Rs. 20,000-25,000 - Urban
Rs. 17,500 - Rural and semi-urban
|Allahabad Bank||Rs. 20,000|
|Canara Bank||Rs. 25,000|
|Dena Bank||Rs. 15,000|
|Punjab National Bank||Rs. 30,000|
|Dhanlaxmi Bank||Rs. 35,000|
|Federal Bank||Rs. 50,000|
|Nainital Bank||Rs. 25,000|
|Ratnakar Bank||Rs. 25,000|
|South Indian Bank||Rs. 25,000|
|Kotak Mahindra Bank||Rs. 25,000|
|IndusInd Bank||Rs. 25,000|
|Deutsche Bank||Rs. 25,000|
|Bajaj Finance Limited||Rs. 30,000 - Rs. 40,000 (Depending on the city)|
Apart from the salary; banks or financial service providers also look for following eligibility criteria:
CIBIL score: This is a score given out of 900 to every borrower depending on the credit history. A good score is typically above 750. Anything below that increases the chances of loan application rejection. In order to get high CIBIL score, few of the solutions are –
- You should never keep credit balance
- No late or missed payments
- Pay EMIs fully. No minimum balance to be paid.
- Limited loan/credit card applications
- Not spending above the credit limit i.e. credit utilisation should be low.
Type of income: Whether you have a regular or irregular income matters a lot. Even if you have a high income but if it is irregular, then chances of personal loan disapproval increases.
Read on getting personal loan from co-operative bank.
Company you work for: The market reputation of the company you work for carries importance.
How many years you have been in the present job? Lenders also look for the applicant’s job stability. And if the applicant is self- employed then years in the business is considered. Although this criteria is considered by very few lenders.
Age: Most lenders do not offer loan to applicants below the age of 21 years. This is because, it is assumed that such individuals will not have repayment capacity due to no income.
Qualification: If the applicant is not a graduate then getting a loan becomes difficult. However if such individuals have a steady income, then banks can consider such applications.
Other options to get personal loan, if you are denied because of low income are:
Against fixed deposit: It’s a big money saver as the rate of interest charged by the bank is low compared to traditional personal loan. Moreover banks typically skip criteria such as monthly salary, CIBIL score etc. as mentioned above.
You can also get personal loan against LIC policy, securities such as mutual funds, shares, gold. Peer to peer lending is another good option to get loan.
So for a low income earning person, there are multiple options to get personal loan. But always remember to pay-off your EMIs before every due date.