Minimum Salary for Personal Loan: Features, Eligibility & How to Apply

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18 OCTOBER, 2023

Do you need financial assistance for several personal expenses but wonder if your income is sufficient to qualify for a Personal Loan? You have to come to the right place. This blog will help you know the minimum salary for a Personal Loan in India. It will also help you understand the difficulties of everything, including the Personal Loan application process, Personal Loan eligibility, features, charges, etc. So, let's begin!

Minimum Salary Required for Personal Loans in India

Personal Loans are one of the most preferred choices for individuals searching for an option to fund several financial needs. But are you considering how much salary is required for a Personal Loan in India?

Every bank requires the applicant to have a minimum monthly earning. So, you must learn about the minimum loan amount you can get depending on your salary.

Remember, the required salary amount to avail of a Personal Loan differs from bank to bank. So, the minimum salary required for a Personal Loan at Kotak Mahindra Bank is mentioned below.

For a Kotak Bank Salary Account holder: Minimum net monthly income of Rs. 25,000
For a non Kotak Bank Salary Account holder: Minimum net monthly income of Rs. 30,000
For Kotak Bank Employees: Minimum net monthly income of Rs. 20,000

However, a higher salary allows an individual to get a larger loan amount from any bank. So, it is better to take notes of everything and keep everything handy, like Personal Loan required documents, to ensure a seamless loan application process.

Features of Personal Loans in India

Now that you know how much salary is required for a Personal Loan in India, you must know its unique features. It will help you understand its benefits and why it is popular in India.

Zero Collateral

One of the best features of a Online Personal Loan is that, as it is an unsecured loan, you do not need to mortgage any of your property. Financial institutions will approve your loan if you meet the eligibility criteria and have a high credit score.

Fixed Interest Rates

Fixed Personal Loan interest rates are another significant feature that grabs people's attention. Kotak Mahindra Bank offers its customers an attractive interest rate of 10.99% p.a., making it simpler to budget for repayments.

Flexible Repayment Tenure

Another feature of a Personal Loan is its flexible repayment tenure. After knowing the minimum salary for a Personal Loan, you can select the repayment tenure that suits you best. Kotak Mahindra Bank's loan tenure is between 1 and 6 years.

How do you Apply for a Personal Loan in India?

You must know the application process if you have the minimum salary required for a Personal Loan. Applying for a Personal Loan is easy and hassle-free and can be done online. You need to follow the steps below to get instant approval.

Step 1: Visit the official website and select the 'Personal Loan' option.

Step 2: Click the 'Apply Now' option after reading the eligibility criteria, Personal Loan fees and charges, etc.

Step 3: Share all the basic information like bank details, email addresses, required documents, bank statements, etc.

Step 4: Receive your offers by quickly authenticating your bank statement. Then, verify your email ID through OTP.

Step 5: After reading everything, e-sign the loan agreement paper and get your loan as soon as possible. You can even set up the auto-repayment option.

Must Read : Calculating Personal Loan EMI with Excel: Formula and Function Guide

Eligibility Criteria and Documentation Needed to Apply for a Personal Loan

Before checking the minimum salary for a Personal Loan in the bank, you must learn about the basic eligibility criteria. It will help you know whether your loan will be approved or not. So, to qualify for a Personal Loan, you must meet the following Personal Loan eligibility criteria.

Your age must be 21 years to 60 years
You must be working under a private limited company, public limited company, or MNC
The minimum education qualification must be graduation
You must have work experience of at least 1 year

While applying for a Personal Loan, you must submit the following Personal Loan required docs.

Aadhaar card
PAN card
3 months' bank statement
A copy of valid residential proof
2-3 copies of current passport-sized photographs

Interest Rate and Other Charges Associated with Personal Loans

Whatever bank you choose to get a Personal Loan from, closely evaluate their Personal Loan fees and charges with interest rates. There will be different charges, including loan processing, stamp duty, bounce, foreclosure, pre-payment, etc.

However, you must know that every bank's Personal Loan interest rates and charges differ.

How Do Banks Calculate Personal Loan Eligibility?

All banks calculate eligibility for a Personal Loan based on your credit score, monthly income, and existing financial commitments. The minimum loan amount you will receive greatly depends on the aforementioned factors.

A good credit score and high income can help you get a larger loan. The banks use a formula that ensures that your loan EMI never exceeds a specific percentage of your monthly income. Hence, you will find that several banks have their own Personal Loan EMI calculator for their customers to help them calculate their EMI quickly.

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Key Takeaways

The minimum salary for a Personal Loan in a bank varies greatly in India. You can compare banks to see which offer Personal Loans for your monthly salary. Always select a bank that offers Personal Loans at competitive interest rates, fees, and charges.

Understand their eligibility criteria to know whether you can take a Personal Loan. Also, be careful while filling out the online application and submitting documents, as a small mistake can hamper your chances of getting approved for a loan.