Personal loan eligibility: What is the minimum income required?

Core Insights - The article discusses the importance of income criteria for personal loan eligibility set by various banks and NBFCs, emphasizing the need for a good credit score, age range, minimum income, and debt-to-income ratio [1][2][17] Income Criteria for Personal Loans - Banks and NBFCs assess borrowers' repayment capacity based on their income and existing debt obligations, particularly for unsecured personal loans [2][3] - A debt-to-income (DTI) ratio of 35% or lower is generally considered favorable for loan approval, although some banks may accept higher ratios [4][5][6] Minimum Income Requirements by Bank - HDFC Bank: Requires a minimum monthly net income of Rs. 25,000 for its XPRESS Personal Loan, with no mention of self-employed eligibility [8] - Axis Bank: Sets a minimum monthly income of Rs. 15,000 for existing customers and Rs. 25,000 for non-customers [9][10] - Kotak Bank: Requires Rs. 25,000 for salary account holders and Rs. 30,000 for non-holders, with a lower requirement of Rs. 20,000 for Kotak employees [11][12] - State Bank of India: Requires Rs. 20,000 for Government employees and Rs. 25,000 for corporate sector employees [13] Variability in Income Requirements - Minimum income requirements can vary by bank, city of residence, and employment status, with higher requirements in metropolitan areas due to the cost of living [14][15] - Government and PSU employees may have lower income requirements compared to private sector employees due to perceived lower risk [15] Strategies to Improve Loan Approval Chances - Applicants with low salaries can improve approval chances by including a co-applicant or guarantor, reducing the loan amount, or extending the loan tenure [16]