Personal Loans are used by people for a wide variety of reasons. Most lenders stipulate a minimum income that must be met in order to apply for a Personal Loan. On the other hand, some other lenders need to assess your repaying capacity to be able to afford the loan. Here, we help you to know of Personal Loan minimum requirements and your eligibility for a Personal Loan based on your salary.
Low Income Personal Loan
If you are hesitant to approach a lender for fear of being rejected, because of a low income, here is some good news. Now, You can get a Low Income Personal Loan from lenders. The minimum income for Personal Loan varies from Rs. 15,000 to Rs. 40,000, depending upon your location. Personal Loan minimum income requirements are generally higher in metropolitan cities as compared to Tier II or Tier III cities.
The eligibility of Personal Loan for salaried individuals differs from lender to lender. Lenders look at various factors:
●Your age (the younger you are, the higher are the chances of your eligibility)
●Credit rating, (an indication of your credit record),
●Financial situation (inclusive of current income, assets, and liabilities)
●Employer (employer reputation and track record of paying employees)
How is your Eligibility Calculated?
Lenders usually deploy one of these two mathematical methods to arrive at your loan eligibility.
●Multiplier method – Loan eligibility = Your net salary x a number between 9 and 18 (depending upon the stability, growth, and turnover of the company)
●FOIR – Fixed Obligations to Income Ratio= (Sum of existing obligations/net take a home monthly salary) x 100
Among the two, FOIR is a commonly used methodology to determine one’s eligibility criteria for any loan. FOIR is calculated to assess your remainder budget for daily expenses after monthly repayments on debt obligations. Most lenders are comfortable with a FOIR of 35-40%, but if the FOIR exceeds 50%, chances of getting a loan, including a Personal Loan become less.
Before you make an application, use an Personal Loan Eligibility calculator to assess your eligibility. Most leading financial services providers provide a simple and easy-to-use online tool that estimates your eligible loan amount, along with interest rates and tenure.
Personal Loan application procedure
Once eligibility criteria is met, you can apply for a Personal Loan online, to get faster loans . Leading financial services providers such as Bajaj Finserv offer instant pre-approved loans through an easy-to-apply online application procedure. All you have to do is apply with basic Personal Loan documents such as income and address proof. Get instant approval on low salary Personal Loans, and choose to repay the loan in easy instalments over a fixed tenure.
Avail of a pre-approved loan offer up to Rs. 25 lakhs when you complete your loan application. All terms and conditions are disclosed upfront, without any worry of hidden loan charges.
Applying for a Personal Loan with NBFCs is quicker, easier, and convenient than most traditional lenders. With a speedy online approval on your Personal Loan, you receive instant relief to all your urgent financial needs. All you have to do is share a few basic details and check out your pre-approved offer.
