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Minimum salary required for Personal Loan eligibility

03 Sep 2021 by IDFC FIRST Bank
Minimum salary required for Personal Loan

What is the minimum salary needed to secure a Personal Loan?


To secure personal loans, you must meet certain eligibility requirements. Your salary is one of the biggest factors that financial institutions consider when processing your loan application. The minimum salary required for a personal loan varies depending on the financial institution.

Before we get into personal loan eligibility based on salary, let us look at some of the other necessary eligibility requirements for getting a personal loan.

Individuals who are salaried and those who are self-employed have different eligibility requirements.

The following are the requirements for obtaining a personal loan:

  • The candidate must work for a private or public company with a baseline minimum turnover, as determined by the corporate policy.
  • The candidate must have at least one year of work experience and six months with their current employer.
  • The age of the candidate should be between 21 and 60 years old.
  • In Mumbai and Delhi, the salary must be at least ₹20,000, and in other regions of India, it must be at least ₹15,000.
  • A self-employed person who has been in business for at least 5 years and has a profit after tax, depending on the industry, can apply for a loan.

IDFC FIRST Bank’s personal loan eligibility criteria is relatively simple. If you are a salaried individual, you must be over 23 years of age to avail of personal loans from IDFC FIRST. Self-employed individuals, meanwhile, must be over 25 years of age and their business should have been in existence for at least 3 years.

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How to check your eligibility to secure a salary personal loan?


The above-mentioned eligibility criteria determine whether a lender will examine your personal loan application. However, the maximum amount you can borrow is calculated based on a different set of parameters.

It is advisable to work on these parameters as they can boost the likelihood of your loan being approved. Your loan eligibility is determined by several variables, including your income, age, repayment capacity, and other factors. You can also use a personal loan eligibility calculator to get an estimate of the maximum loan amount as well as the various offers available to you.

You can get an estimate of the loan amount and the EMIs using a personal loan eligibility calculator in a few simple steps.

  • Enter your current location.
  • Enter your date of birth and age. To qualify for a loan, you must be between 21 and 60.
  • ·If you are a salaried employee, enter your monthly salary. Profit after tax is essential for self-employed professionals.
  • List your existing EMIs, including loans, credit card payments, and so on.
  • You will be given an estimate of the loan amount you are eligible for. You can change the interest rate and the term to suit your needs.

IDFC FIRST Bank’s personal loan EMI calculator is easy to use and understand. Simply enter your loan amount requirement, period for which you want the loan, and desired interest rate. The calculator will use the information to evaluate your EMI.

We offer the best interest rates on personal loans, which helps ease financial burden. You also have flexibility to decide your loan tenure, with the maximum tenure set at 60 months. Additionally, you get:

  • Access to credit up to ₹40 lakhs
  • Flexibility to make up to 40% part payment
  • Top-up facility

Different banks have different limits for what one’s salary should be but remember that the minimum salary for a personal loan is not the only criteria considered for analysing personal loan applications.

 

Banks and financial institutions use a method to determine whether a person is eligible for a personal loan. The factors that are considered for a personal loan for self-employed people are different. The more the income and the bigger the company you work for, the more likely you are to get a larger loan at less interest rate.

The process of checking for loan eligibility involves other eligibility factors as well. If you are thinking of getting a personal loan, apply when the personal loan rates are low.

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.