Minimum Salary Required to Get a Personal Loan: Your monthly income or salary is one of the most important factors to qualify for a personal loan. However, there is not one set income to get a personal loan; monthly income required for a personal loan varies from lender to lender and depends on how much money you want to borrow. Income criteria are laid down to find out if the borrower draws a sufficient monthly income for handling a loan.
Minimum Salary Required to Get a Personal Loan
Required monthly income also varies by cities in which a borrower wants to get the personal loan. In Tier I cities, the minimum income for a loan is higher due to higher living expenses in these cities. The minimum income criteria decrease in Tier II and Tier III cities accordingly. For instance, in Tier I cities, for an HDFC personal loan, the minimum monthly income required is Rs. 20,000, whereas in other cities, it is Rs. 15000 per month.
Here is the minimum income required for personal loans from prominent banks and NBFCs:
| Personal Loan | Minimum Income (per month) | Interest Rate (p.a.) | Tenure |
| State Bank of India Xpress Credit Personal Loan | Rs. 5000 | 12.50% to 16.60% p.a. | Up to 60 months |
| SBI Xpress Power | Rs. 5000 | 12.00% – 13.65% | Up to 60 months |
| HDFC Bank Personal Loan | Rs. 15000 (20K for Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Cochin) | 15.50% to 21.50% | 12 to 60 months |
| Punjab National Bank Personal Loan | Metro Centres: Rs.15000/-
Urban Centres: Rs.12500/- Semi- Urban/ Rural Centres: Rs.10000/- |
12% to 15% p.a. | Up to 60 months |
| Axis Bank Personal Loan | Rs. 15,000 | 15.75% to 24% p.a. | Up to 60 months |
| Tata Capital Personal Loan | Rs. 15,000 | 11.25% | Up to 72 months |
| Canara Bank Consumer Loan | Rs. 12,000 | 13.15% to 14.15% | Up to 36 months |
| Canara Teachers Loan | Rs. 10,000 | 12.55% | Up to 48 months |
| Canara Budget Loan | Rs. 10,000 | With salary tie-up: 12.90%
Without salary tie-up: 13.90% For BSNL employees: 10.90% |
Up to 60 months |
| ICICI Bank Personal Loan | Rs.17,500 (Rs.25,000 for Mumbai & Delhi; Rs.20,000 for applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata area) | 11.25% to 17.99% | 12 to 60 months |
| Allahabad Bank Personal Loan | Rs. 15,000 | 13% | Up to 60 months |
| Indian Overseas Bank | Above Rs. 5000 | 12.17% to 15.25% | Up to 60 months |
| IDBI Bank Personal Loan | Rs. 15,000 | 10.15% to 12.90% | 12 to 60 months |
Personal loan for pensioner
If you are a pensioner, there are banks that offer a personal loan for retired and retiring person based on the per month pension they are getting.
State Bank of India pension loan
Center and state government pensioner who get their pension through SBI account can avail SBI personal loan for pensioners.
Key features of SBI pension loan
| Interest rate | 11.85% to 12.35% p.a. |
| Maximum age | 76 years |
| Loan amount | Rs. 25,000 to Rs. 14 lacs |
| Loan tenure | Upto 84 months |
Punjab National Bank personal loan for pensioners
Punjab National Bank personal loan is meant for all pensioners drawing pension through its branches.
Key features of PNB personal loan for pensioners
| Interest rate | TL/DL: BR+2.50% |
| Maximum age | 75 years |
| Loan amount | Rs. 25,000 to Rs. 10 lacs |
| Processing charges | NA |
| Documentation charges | Rs. 500+ GST |
Bank of India personal loan for pensioners
Regular pensioner or family pensioners who get their pension through its branches can stand to benefit from BOI Star Pensioner Loans.
Key features of BOI Star Pensioner Loan
| Type of Advance | DL/TL/OD |
| Maximum age | 75 years |
| Loan amount | 15 times of monthly pension subject to Max. Rs. 5 lakh |
| Rate of interest | 1 Year MCLR +2.50% |
| Repayment tenure | 60 EMIs |
| Processing charges | One time 2% of the loan amount subject to Min Rs. 500 to Max Rs. 2,000 |
Apart from income, you need to fulfill other eligibility criteria like:
Eligibility for a personal loan
Age Limit: Anyone within the age limit of 21-58 years can apply for a personal loan.
Employment Status: Any salaried/self-employed individual who has been getting a regular income for minimum past 2 years can get a personal loan. The applicant must be receiving regular income from the current employer or current business for the last 1 year.
Good Credit Store: CIBIL score has decisive role to get your loan application approved. A good credit score starts from 750. Higher the credit score, the better it is for you.
Please note: All lenders have their own set of criteria with respect to credit score, age, income etc. and it may vary from bank to bank.
Documents required
Here is the list of documents you need to apply for a personal loan. You can submit the documents either online or by visiting the bank.
- Complete loan application form and photographs
- Age proof (birth certificate, PAN card, voter’s identity card, passport, Aadhaar card etc.)
- Address proof (electricity bill, telephone bill, ration card etc.)
- Income proofs for salaried applicants: Latest 3-month salary slips and salary certificate with the latest Form 16
- Last 3 months bank statement
- Documents for self-employed applicants: Latest Income Tax Returns certificate or Form 16 and the latest bank statement
- Credit report
If your monthly income or salary is not sufficient to qualify for a personal loan, you can explore other options like:
Add a co-applicant:
If you don’t qualify for a personal loan due to low income, you can apply with a co-applicant with a good credit score and high income to improve your eligibility. Lender will consider your and co-applicant’s income to check your eligibility. If you default on the loan, lender will approach the co-applicant to recover the outstanding amount.
Apply for a Secured Loan
When you are not eligible for a personal loan due to low income, you can apply for a secured loan by keeping some assets as collateral. Secured loans are available at a relatively lower interest rate as there is less risk for the lender if you fail to make repayment. Lenders typically offer a loan amount up to 75% of the asset value in this case.
