During unplanned emergencies, opting for an instant personal loan can come handy, instead of withdrawing your investments. Because having a little extra credit can always be a huge boon to working professionals. Many lenders offer an instant personal loan for salaried employees. Whether you are planning for a vacation with the family or organizing your destination wedding or dealing with any medical emergencies, an instant personal loan can only offer you with the required benefits.
You can get access to instant funds with zero collateral. Because of this reason, a personal loan has become the most preferred loan product by working-class professionals who are finding it difficult to manage their basic needs with their monthly salary.
Eligibility for a Personal Loan
Since most of the personal loans available are unsecured, the eligibility criteria differ from that of secured loans like Home loans. While the actual eligibility criteria may vary from one individual to another, depending on the relationship you maintain with your lender. Some of the general eligibility requirements are:
- Age – Should be equal to or more than 21 years.
- Employment status – Can be salaried or self-employed.
- Minimum salary – Few lenders approve a minimum monthly salary of INR 8000 to a few lenders who approve salary of INR 30,000.
Since personal loans are unsecured, your lender will consider your take-home pay to evaluate your eligibility or creditworthiness.
What is the Minimum Salary Required to Qualify for a Personal Loan?
There is no predefined minimum salary requirement to qualify for a personal loan. This is determined on a case-by-case basis, considering several additional factors such as:
- Credit history – Your credit history is one of the prime factors in determining your loan eligibility. If you have an excellent credit history, then it showcases your repayment capacity, which in turn helps relax your eligibility requirements. But if your credit history is bad, then it may sometimes lead to your loan application being rejected.
- Your location – The place where you reside also plays another important role in determining the minimum salary requirement. When you consider applying for a loan in metro cities like – Delhi, Chennai, Mumbai, Bengaluru, Hyderabad, and others, the minimum salary requirement is higher in comparison to Tier-II cities or towns. This is generally because the cost of living in metro cities is higher when compared with Tier-II cities or towns. Hence, a lender expects you to have a bigger income package to be able to pay off your loan comfortably.
- Your employment track record – If you are working with a reputed organization for several years, it indicates that you are in a stable job. When you have a stable job, your lender can lower your minimum salary requirements.
- Other additional credits – If you are already having any other credits such as home loans, credit card debts, car loans, etc. then your minimum salary requirements can increase.
So, knowing your eligibility before approaching your lender can put you in a favourable position to negotiate the personal loan terms and conditions in a better way. If you are in dire need of cash, then consider applying for an instant personal loan with FlexSalary, because they approve instant loans, even if your monthly salary is as low as INR 8000. Make your loan application process seem effortless with FlexSalary!