Personal Loan Minimum Salary Required by 33 Banks/NBFCs in India
Income of the personal loan applicant (salaried or self employed) is the most important criteria checked by the lender when approving 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 33 banks/financial services companies in India:
|Name of Bank||Minimum Monthly Salary Required|
|The West Bengal State Co-operative Bank Ltd.||Rs. 2,000|
|The Andaman and Nicobar State Co-operative Bank Ltd.||Rs. 5,000|
|City Union Bank (Consumer Loan) for Salaried||Rs. 5,000|
|Indian Overseas Bank||More than Rs. 5000|
|Oriental Bank of Commerce||More than Rs. 6000|
|City Union Bank||Rs. 6,500|
|HDB Financial Services (part of HDFC)||Rs. 6,250|
|Jammu and Kashmir Bank||Rs. 6,500|
|City Union Bank (Consumer Loan) for Professionals||Rs. 6,250|
|Abhyudaya Co-operative Bank||Rs. 8,000|
|State Bank of India (Xpress Credit Personal Loan)||Rs. 7,500. This loan is only for the employees of state and government, PSUs, selected companies|
|HDB Financial Services (part of HDFC)||Rs. 8,333|
|Karnataka Bank||Rs. 10,000|
|Karur Vysya Bank||Rs. 10,000|
|Canara Bank||Rs. 10,000|
|Axis Bank||Rs. 15,000|
|South Indian Bank||Rs. 15,000|
|Dena Bank||Rs. 15,000|
|AEON Credit||Rs. 18,000 and above|
|HDFC Bank||Rs. 20,000 – Urban
Rs. 15,000 – Rural and semi-urban
|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|
|IDBI Bank||Rs. 20,000|
|State Bank of India||Rs. 24,000 – Urban
Rs. 10,000 – Rural and semi-urban
|Nainital Bank||Rs. 25,000|
|Ratnakar Bank||Rs. 25,000|
|Kotak Mahindra Bank||Rs. 25,000|
|IndusInd Bank||Rs. 25,000|
|Deutsche Bank||Rs. 25,000|
|Bank of Maharashtra||Rs. 25,000|
|Punjab National Bank||Rs. 30,000|
|Bajaj Finance Limited||Rs. 30,000 – Rs. 40,000 (Depending on the city)|
|Dhanlaxmi Bank||Rs. 35,000|
|Federal Bank||Rs. 50,000|
Apart from the salary; banks or financial services companies also consider following eligibility criteria
CIBIL score: This is a score given out of 900 to every borrower depending on the credit history. Score above 750 is considered good and indicates the applicant is credit worthy. Anything below that increases the chances of loan application rejection. In order to get high CIBIL score, few of the recommended tips 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 utilization 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.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries. He has authored many articles on this site (allonmoney.com).