Life is full of ups and downs and when it comes to finances, there are chances for an emergency expense to arise anytime. In such scenarios, you can fulfil the lack of funds with a personal loan. A personal loan being an unsecured borrowing can avail you cash up to Rs. 20-25 lakhs, depending on the lending institute. You can spend the funds on any personal need, barring a speculative and illicit purpose.
Many people use the loan to pay for an expense rising from medical treatment, travel, home repair, big-ticket purchase, education, wedding, and many more. To know more about personal loans, you can check the offers from top banks and NBFCs in your country/city. While the flexibility of personal loans may seem fetching, the scheme itself comes with stringent eligibility criteria, given the loan being collateral-free.
The bank/NBFC will check on the income drawn by the borrower. Usually this loan is given to salaried persons and not self-employed individuals. The salary drawn must follow a monthly cycle, and should reflect in your bank account. Thus, those drawing salary in cash will not be eligible to apply for this loan.
Credit Score, Documents, and Other Requirements
Apart from income, you should have proof of identity, proof of residence, and recent passport-sized photographs. As a proof of salary draw, you will have to submit salary slips and bank statements. The financial institution will also access your credit report to understand your financial behaviour such as if you repay loans and pay credit card bills on time or not.
To get a personal loan, you should have at least 700+ credit score, or you may be at a risk of having your loan application rejected. For low credit score loans, the interest rate charged would be high.
Minimum Salary Require for a Personal Loan
So, what is the minimum salary required to avail a personal loan? Usually, banks may mandate the minimum salary requirement as Rs. 25,000 net, per month. However, there have been instances of personal loans being approved to those with lower salary. Below are some of the banks and their schemes for low salary personal loans.
- HDFC Bank personal loan offers quick loans to women. They can get pre-approved loan amounting to Rs. 3 lakhs under the scheme personal loan Diva loan. Even first-time borrowers are allowed to apply for the funds. Minimum income needed is Rs. 12,000 – Rs. 15,000 in a month.
- ICICI Bank also offers loans to salaried persons who are at least 23 years of age. Minimum loan amount is Rs. 50,000 and maximum is Rs. 20 lakhs. Minimum salary required ranges from Rs. 17,500 to Rs. 25,000 depending on the place of residence and other factors.
- SBI Saral personal loan is up to Rs. 10 lakhs. Minimum income needed is Rs. 10,000 to Rs. 24,000 depending on the repayment capacity of borrower and the loan amount.
- Punjab National Bank can offer a loan up to Rs. 4 lakhs to those with net monthly income between Rs. 10,000 and Rs. 15,000. This loan has to be repaid in maximum 60 EMIs. There is no margin applicable. Processing fee is up to 1.80% of the total loan amount.
- Axis Bank provides a loan from Rs. 50,000 to Rs. 15 lakhs. The applicant should be of 21 years at least, and not older than 60 years. Loan tenure is between 12 months and 60 months. Minimum net income for a month should be Rs. 15,000.
Thus, you may not need a huge monthly salary to get a personal loan, especially if the borrowing amount is low. Check for best personal loan schemes by loan providers, and choose the one that suits your needs the most.