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4 factors other than your salary that can decide your Personal Loan approval



When it comes to personal loans, there is no set minimum salary for your application to be approved. Some banks may keep a minimum limit (say Rs. 15,000 – Rs. 20,000 per month). However, this value can differ from one applicant to the other, since salary is not the only criterion.

A lender may consider the following factors to determine the personal loan eligibility criteria.

Residential location

The minimum salary for approving the loan may be higher if you live in the metro cities such as- Mumbai, Bengaluru, Chennai, Hyderabad and Delhi, among others. This is primarily because the living expenses are typically higher in these cities. Comparatively, the expenses are lower in Tier-II cities and towns.

Home ownership

If you live in rented accommodation, a portion of your salary goes towards paying the monthly rent. This reduces your disposable income and may affect your capacity to repay the loan.

Credit history

This is the go-to factor for any bank to approve your loan. If you have a good credit score (typically above 700), then the chances of your loan being approved go up. If your score is less, the bank may reject your application, or if your personal loan is approved, the interest rates would be high.

If the bank thinks your salary is enough to cover your pending loans or credit cards bill, if any, your loan may be approved.

Organization details

The lender may also consider the reputation of the company you are working for and the tenure to check your stability. If it is satisfactory, then the minimum salary requirement for the loan may be relaxed.

Some of the other criteria you must meet are:


The age limit to apply for a loan is from 23 to 60 years for those who are employed. If you have your own business, it can go up to 65 years.

Work status:

You must be working or have been running a business for a minimum of three years.


The income is decided by the bank based on your credit score and history. Usually, the in-hand salary of the applicant or the net income is considered when approving the loan.

These above factors can give you a fair idea of whether you would be eligible for a personal loan. You can use a personal loan eligibility calculator, available online, to know your approximate loan amount. 



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