- Income tells lenders about your capacity to repay a personal loan
- But what is the minimum income that lenders ask to approve a personal loan - Read this post to know the same
Getting a personal loan is easy for salaried individuals earning high income as that boosts their repayment capacity. Banks and Non-banking Financial Companies (NBFCs) usually provide loans to the applicants whose income meets the criteria set by them. They determine your ability to pay by calculating the EMI to Net Monthly Income (NMI) ratio. They also check your expenses by going through the bank statement. But are there personal loans for low-income groups? Yes, there are lenders which provide loans to the customers whose income is INR 10,000 as well. Read the post below and know about the minimum income sought by banks and NBFCs to approve a personal loan.
State Bank of India (SBI)
To borrow a personal loan from SBI, your minimum monthly income should be INR 15,000 per month. And every PSU, public, or private sector employee can apply for the loan. If you are an existing bank customer and getting your salary disbursed to the SBI bank account, you can use the YONO app to apply for the loan online. The loan process involves the submission of a few documents that prove your monthly income, such as salary slips, salary certificate, Form 16 or bank statement for the last 6 months.
SBI charges a processing fee of 1.5% of your loan amount and then disburses the loan to the bank account. You can use the loan for medical, marriage, education, or any other financial emergency. You can borrow up to INR 20 lakh from SBI at an interest rate of 11.00% - 14.00% per annum which is dependent on the income you earn.
A personal loan can be borrowed from the HDFC bank if you have a minimum monthly income of INR 25,000. Employees of public or private sector companies, PSUs, local bodies and MNCs can apply for the loan. If you have a salary account in HDFC Bank, you can easily avail of the personal loan based on your income and credit history. And if you are not the customer of the bank, the minimum income criterion is different for you. In that case, you need to have a minimum monthly income of INR 50,000.
HDFC Bank lends you money based on your employer status, income, credit score, and work experience. And you can borrow money at an interest rate of 10.75% - 14.50% per annum.
ICICI Bank offers you a personal loan up to INR 40 lakh and you need to earn the minimum income to get a loan from the private lender. See the following monthly income criterion you need to meet to borrow a loan from ICICI Bank.
- The net monthly income of the applicant should be INR 25,000 per month if he/she lives in Delhi or Mumbai.
- Applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata can apply for the loan with a minimum salary of INR 20,00 per month
- Others can get the loan if they have a monthly salary of INR 17,500 or more.
An applicant with a minimum work experience of 2 years in the current job profession with 1-year experience with the current employer is eligible for ICICI personal loan. The bank charges an interest rate of 10.75% - 19.00% per annum.
Kotak Mahindra Bank
You can apply for a personal loan at Kotak Mahindra Bank if your minimum monthly income is INR 20,000. Working individuals of private or public sector employees, PSUs, MNCs and local bodies are eligible for the loan if they have a minimum experience of 1 year and reside in the current state for 1 year. You can borrow a maximum INR 20 lakh from the bank based on your credit score and monthly income. Kotak Mahindra Bank Personal Loan Interest Rate ranges from 10.99% Onwards per annum.
You can borrow a personal loan from the RBL Bank if your monthly income meets the loan eligibility. To get a loan from RBL Bank, you need to have a minimum monthly salary of INR 20,000. And if you live in Delhi or Mumbai, the minimum income criterion for a personal loan is INR 25,000 per month. You need to have a minimum work experience of 3 years with 1 year of experience in the current company or organization.
RBL Bank charges an interest rate of 14.00% - 23.00% per annum that is dependent on the income and credit history of the borrower.
Standard Chartered Bank
To get a personal loan from Standard Chartered Bank, your monthly salary should be a minimum of INR 25,000 if you are an existing customer of the bank. Otherwise, the required minimum income for the loan is INR 50,000 per month. Your eligible loan amount will be decided based on your income, credit score, and monthly expenditures.
You can borrow a loan maximum of INR 50 lakh from the bank at an interest rate of 11.49% Onwards per annum. And you don’t even need to pay a processing fee for your loan when you borrow money from Standard Chartered Bank.
Salaried employees, doctors, and individuals working at PSUs or local bodies can apply for the Axis bank personal loan if they have a minimum net monthly income of 15,000. Applicants aged between 21 to 60 years can apply for this loan and borrow up to INR 15 lakh from the bank based on their income and credit score.
You don’t need to provide any type of collateral to the bank, just submit your application with KYC and income proof for the loan approval. Axis Bank charges a processing fee from the customer which is 1.50%-2.00% of the loan amount. And you get an attractive rate of interest on your loan that ranges from 10.49% - 21.00% per annum.
Bajaj Finserv Ltd.
The NBFC provides you a personal loan if you earn a minimum monthly income of INR 25,000-35,000. Bajaj Finserv personal loans can be given up to INR 25 lakh, and based on your income and repayment capacity, the lender calculates the loan amount you can get. The interest rate on your loan amount ranges from 11.00% Onwards per annum.
You need to pay a processing fee up to 3% of your loan amount to borrow a loan from Bajaj Finserv Ltd. And to apply for the loan, you need to submit the ID, income and address documents along with the duly filled application form.
You can borrow a personal loan from the IndusInd bank if you earn a minimum monthly salary of INR 25,000. IndusInd Bank provides you the loan based on your income and credit score. The monthly expenditures and savings are taken into account to calculate the loan eligibility. A maximum amount of INR 25 lakh can be borrowed from the bank at 10.25% - 26.00% per annum.
To apply for the loan, your age should be 21 to 60 years and you must have a minimum work experience of 2 years.
YES BANK provides you a personal loan up to INR 40 lakh based on your income and credit score. The minimum required income for the loan is INR 25,000 per month. And any salaried individual with a work experience of 2 years can apply for the loan without any hassle. Just submit your KYC, address and income proof to the bank and borrow a loan from it. YES BANK personal loan interest rate ranges from 11.05% - 20.25% per annum.
IDFC First Bank
To borrow personal loan from IDFC First Bank, you need to take care of your current obligations, monthly income and credit score. Based on all these factors, your eligible loan amount and interest rate are decided. With a minimum monthly income of INR 20,000, you can apply for the loan at an attractive rate of interest 10.50% - 25% per annum.
Salaried individuals of Public or Private companies, MNCs, Corporates, PSUs and local bodies can apply for the loan. You can borrow a maximum amount of INR 25 lakh from IDFC First.