Emergencies might arise at any time. To ensure you have the money you need during these contingencies, getting a Personal Loan is beneficial. A Personal Loan for salaried is an unsecured funding for working professionals. Simple to get, these loans do not require any collateral as security. Each financial institution has a set of eligibility requirements for providing a Personal Loan. This article will talk about the elements that affect your loan eligibility.
Minimum Salary for Personal Loans
One of the requirements for a Personal Loan is the minimum salary requirement. Based on your salary, the lending institution considers your application for a Personal Loan. Usually, you can get a Personal Loan for a salary of Rs 15000.
Other factors include:
- Employment Record: Working for a reputable firm for some years shows that you are in stable employment. However, to find the approximate loan amount you will receive for your particular situation, utilise an online eligibility calculator for Personal Loans. It will provide the amount you are eligible for based on your income.
- Housing Situation: Whether you live in a rental or your own home, your housing situation plays an important role in ascertaining your minimum salary requirements. This is because living in a rental house causes your disposable income to decrease, which in turn lowers your ability to make payments.
- Location: Compared to towns, living in major cities like Delhi, Mumbai, Chennai etc., can be quite expensive. Furthermore, the minimum salary criterion to get a Personal Loan in these major cities is often more significant. Due to the increased living costs in big cities, the lender anticipates that you will need a larger salary to repay the loan without hassle. This is why the location of your residence is essential in establishing the minimum wage.
- Credit History: A strong credit history demonstrates your ability to make payments, through which your eligibility requirements get relaxed. But if you have a poor credit history, your loan application can be rejected. This is the reason why your credit history is crucial in evaluating whether you qualify for a loan.
- Other Credits: You must take note of other credits to avail of a Personal Loan for a salary of Rs 15000. Your minimum wage requirements will rise if you have other debts, such as credit card debt, two-wheeler loans, or other loans.
If you have previously taken out loans from banks or other lenders, that is another element that lending organisations frequently consider before you sign loan approval paperwork. Understanding your eligibility before approaching a lender puts you in a favourable position to negotiate with the lending institution on the loan’s terms.
Importance of Monthly Income and Credit Score
Your monthly income and credit score play an integral role in determining how much loan you can get. Since a lender wants to be sure that you can repay the EMIs on time and eliminate any chance of default, they will prioritise your income over the other factors. Yet, there is no set income threshold to determine if you qualify for a loan.
Most of the time, borrowers are qualified for the maximum Personal Loans offered by the lender. When accepting a loan, lending institutions consider the borrower’s monthly income and future growth. Ultimately, the lender has the last say on how much you can borrow. Nevertheless, most financial institutions provide Personal Loans up to Rs 5 lakh easily. Also, lenders limit the loan’s EMIs to between 45 and 50 per cent of your monthly income to reduce the chance of default.
Personal Loans have been often granted to borrowers from different income brackets. With a strong credit history and score, you can get a Personal Loan easily. However, your prospects of obtaining the required loan amount for a good tenure and interest rate can be affected by any prior instances of default. Also, to get a Personal Loan for salaried, Rs 15,000 is the minimum monthly salary criteria. You may also check out for any pre-approved Personal Loan offers by providing the lender with basic information about yourself.