When a financial emergency strikes, a viable option to get out of this rough spot is through a personal loan for salaried individuals. These loans are popular for the attractive interest rates, flexible tenures, and 100% digital application processes they offer. Additionally, the sanctioned loan amount can be used for multiple purposes – education, weddings, healthcare, home renovations etc.
While applying for a personal loan with most lenders is easy, loan approval will depend on your eligibility and profile. Banks have varying criteria for salaried and self-employed applicants, and the final loan amount you receive depends on factors such as your income, age, employment history and credit score.
Read on to learn more about the factors that can determine the amount of personal loan amount for salaried individuals.
Which Factors Decide Your Loan Amount?
1. Credit Score
Your credit score is an indicator of your creditworthiness or your ability to repay debt, based on your repayment history. Banks consider your credit score as one of the key factors in approving your personal loan amount and deciding on the final rate of interest. A credit score of 700 or more indicates a timely debt repayment history. It shows that you have kept your credit in check, which in turn increases your chances of securing a higher loan amount.
2. Monthly Income
Your monthly income directly reflects your ability to repay the loan. A higher income indicates a higher financial capacity to pay the loan EMIs on time. Naturally, the final loan amount you secure will be affected by your net income.
3. Employment Stability
A stable employment history is another key factor for banks to make a decision on your personal loan amount. A longer tenure in a job and a consistent career progression positively impacts the loan amount you receive.
4. Debt-to-Income Ratio
Most banks also assess your existing debts in relation to your income. A lower debt-to-income ratio indicates a manageable debt liability with respect to your income, and can help you secure higher loan amounts.
Eligibility Criteria – Personal Loan for Salaried Individuals
1. The minimum age requirement is 21 years.
2. The maximum age at maturity should be 60 years or the retirement age, whichever is earlier.
3. The applicant must have a minimum net monthly income of Rs. 25,000 for a personal loan online application.
4. A minimum employment tenure of 2 years, with at least 1 year in the current organisation.
Apply for an Instant Personal Loan Online for Salaried Individuals
While personal loan eligibility varies across banks, there are some general factors that can affect your loan eligibility and amount. Strengthening your credit score, maintaining employment stability and reducing debt are vital steps toward securing a high personal loan amount.
If you are in urgent need of funds, consider applying for an . IndusInd Bank offers instant personal loans online for salaried applicants at competitive interest rates and flexible repayment tenures. Additionally, IndusInd bank offers simple eligibility criteria for salaried individuals, thus ensuring easy access to the necessary funds in times of need.