The relationship between your salary and the approval of your personal loan

A personal loan can be used for travel abroad, study, marriage, or any other reason when you need a large amount of financial assistance. Interesting data from RBI indicates that the amount of money individuals borrow in the form of personal loans has increased dramatically over the past two years. The reason is that they are unsecured loans which do not require any mortgage or collateral. Getting a personal loan is not difficult if you have a decent credit rating and repayment capacity, but your salary plays an important role in the approval of the personal loan. Let’s address some curious topics on the relationship between your paycheck 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 eligibility criteria, which vary for employees and the self-employed. Let’s see the eligibility criteria:

  • The minimum age must be 21 and the maximum age must be 60 or retirement age, whichever comes first
  • Minimum net monthly income of 15,000
  • The borrower must have completed at least 2 years in employment and 1 year in the current organization
  • The borrower must have spent at least 1 year of stay (if he lives in rented accommodation)

How to check your personal loan eligibility criteria?

The lender will decide the maximum limit of the amount to be approved based on the eligibility criteria. Before applying for the personal loan, it is suggested to work on the eligibility criteria listed above to increase the chances of loan approval. You can also use a personal loan eligibility calculator to find out the maximum amount that can be approved. IndusInd Bank has a personal loan eligibility calculator, where you can find the maximum loan amount that will be approved and the IME to be paid on a monthly basis.

How to improve eligibility for a personal loan?

  • Pay off existing debts
  • Work on improving your credit score
  • Do not apply for more than one loan at a time
  • Have the required documents in place

Final words

Applying for a personal loan is easy because you don’t have to go to the bank to apply for a loan. IndusInd Bank allows you to apply for a personal loan from the comfort of your home or office. The whole process is 100% online and paperless, making it a preferred option in the current scenario. However, it is important that you assess all of your requirements before taking out a personal loan. Know the rules and regulations to ensure good financial health and prompt loan payment.

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