What is the Minimum Salary Required for a Personal Loan?

When a person researches about taking a personal loan the first question that pops up in mind is what is the minimum salary required for a personal loan? Your search engine will display many possible answers to this question. But if you are looking for the exact answer then you have landed at the right place. The minimum salary for a personal loan is Rs. 20000 and a person who is getting at least Rs.20000 in a bank account is eligible for a personal loan. Usually, when we start earning Rs. 20000 is the minimum salary that we get in the companies. But we do not imagine that with this much amount, one can get a personal loan. However, getting a personal loan on 20,000 salary is possible.

This article is a comprehensive guide for you on personal loans. Hence, if you are thinking of getting a personal loan then you should give a quick read to the article. One of the quick tips for getting a personal loan is that you should keep all the documents handy that are required for a personal loan. Also, check the credibility of the lender carefully before taking the loan online or offline.

What is Personal Loan?

A Personal Loan is an unsecured loan that the banks and the NBFCs provide to the eligible borrowers. A person who has a credit score of more than 700 and passes the criteria for the minimum salary required for a personal loan which is 20000 is eligible for getting a loan. Another considerable factor is the availability of the documents, you should have KYC Documents, Income Proof, latest bank statement to avail of the personal loan.

Life is the most unpredictable thing and at some point, it shows you the phase where you shall be facing a financially difficult time. At that point in life, you should have a lender who can help you to pass the financial hurdles easily. Many lenders provide you with the facility of personal loans, but the considerable point here is that all the lenders have different requirements of minimum salary for personal loans. Hence, the borrower should have a clear idea about the eligibility criteria for personal loans set by the lender.

Where You Can Use a Personal Loan?

A personal loan is a financial tool that can be used in various ways to meet your individual needs. Here are some common areas where a personal loan can be beneficial:

• Debt Consolidation: You can use a personal loan to consolidate high-interest debts like credit card balances into a single.
• Home Improvement: A personal loan can cover your home improvement expenses.
• Medical Expenses: In case of unexpected medical bills or surgeries not fully covered by insurance, a personal loan can bridge the financial gap.
• Travel: Whether it's a dream vacation, a honeymoon, or any travel adventure, a personal loan can make it happen.
• Weddings: Personal loans can also help in covering the costs of a wedding, including venue, catering, attire, and more.
• Emergencies: Emergencies like car repairs or unexpected bills can be managed with a personal loan.
• Business Investment: Entrepreneurs can use personal loans to kickstart their small business or cover unexpected expenses.
• Purchase High-Value Items: If you need to buy a new appliance, gadget, or other expensive items, a personal loan can provide the necessary funds.
• Consolidate Multiple Loans: If you have several smaller loans, you can consolidate them into one personal loan for simpler repayment.
  

Eligibility Criteria for Personal Loan

The eligibility criteria for the personal loan are mentioned below. Remember that the personal loan minimum salary requirement is also one of the eligibility criteria for a personal loan. Eligibility criteria for personal loans can vary among lenders, but the following are common factors that lenders typically consider when evaluating loan applications:

• Age: Applicants who are applying for a personal loan should have an age between 21-25 years.
• Income: A stable source of income, such as regular employment or a business, is usually required to get a personal loan. 
• Credit Score: A good credit history is essential for personal loan approval. You should have a credit score above 700 to get a personal loan easily.
• Employment Status: Lenders may require you to be employed for a certain period, often six months to a year. Self-employed individuals might need to provide additional documentation.
• Residency: You may need to be a legal resident or citizen of the country where you're applying for the loan.
• Debt-to-Income Ratio: Lenders look at your existing debts, such as credit card balances and other loans, in relation to your income to assess your debt management capability.
• Minimum Salary: You should pass the minimum salary required for personal loan set by the lender. Usually, the minimum salary required for a personal loan is rs. 20000. However different lenders have different requirements.

Documents Required for Personal Loan

When applying for a personal loan, you'll typically need to provide the following documents:

• Proof of Identity: Submit a valid government-issued ID, such as a passport, driver's license, or Aadhaar card.
• Proof of Address: Recent bills, rental agreements, or residence certificates are required documents to get a personal loan.
• Income Proof: Salary slips, bank statements, or income tax returns for employed individuals. Business owners may need to provide financial statements. Fulfill minimum salary requirements set by the lenders.
• Employment Proof: Employment letter, appointment letter, or business ownership documents.
• Credit Report: Lenders may check your credit history themselves, but it's good to have a copy to review.
• Loan Application Form: Filled out with accurate information.
• Photographs: Passport-sized photographs.
• Bank Statements: Typically the last 3-6 months' bank statements.

Conclusion

The article is a helping hand for the people who are willing to get personal loans and have less knowledge about it. Get a personal loan through My Mudra and pass all your financial barriers. My Mudra is a bridge between you and the correct lender. Their association with many banks and NBFCs help you to get personal loan easily.

Also Read:
- Personal Loan for Government Employees @9.99% Onwards
- Secured vs Unsecured Personal Loans: Which Is Right for You?