The Relation Between your Salary and Personal Loan Approval
A personal loan can be used for foreign travel, education, marriage, or any other reason when you need financial help in terms of a big amount. An interesting data by RBI tells that the amount of money that individuals borrow in the form of personal loans has increased significantly over the past couple of years. The reason being that these are unsecured loans that do not require any mortgage or collateral. Getting a personal loan isn’t difficult if you have a decent credit score and repayment capacity, but your salary plays a big role in the approval of the personal loan. Let’s address some curious topics on the relation between your salary and personal loan. Read on.
How Much Personal Loan Can You Get?
When we apply for a personal loan, we have an amount in mind. However, the maximum personal loan you can get depends on meeting the eligibility criteria, which varies for salaried and self-employed individuals. Let’s look at the eligibility criteria:
- The minimum age should be 21 years and the maximum age should be 60 years or retirement age, whichever is earlier
- Minimum net monthly income of 15,000
- The borrower should have completed minimum of 2 years in employment and 1 year in the current organisation
- Borrower should have completed a minimum of 1 year of stay (if living in a rented accommodation)
How to Check your Eligibility Criteria for Personal Loan?
The lender will decide the maximum limit of amount to approve depending on the eligibility criteria. Before applying for the personal loan, it is suggested that you work on the above-listed eligibility criteria to increase the chances of loan approval. You can also use a personal loan eligibility calculator to find out the maximum amount that may be approved. IndusInd Bank has a personal loan eligibility calculator, wherein, you can find the maximum amount of loan that will be approved and the EMI to be paid on a monthly basis.
How to Improve Eligibility for a Personal Loan?
- Pay off existing debts
- Work on improving credit score
- Do not apply for more than one loan at a time
- Have the required documents in place
Applying for a personal loan is easy as you don’t need to go to the bank to apply for a loan. IndusInd Bank enables you to apply for a personal loan from the comfort of your home or office. The entire process is 100% online and paperless, making it a preferred option in the current scenario. However, it is important that you evaluate all your requirements before taking a personal loan. Know the rules and regulations to ensure sound financial health and timely payment of the loan.