A personal loan is one of the easier options for availing of credit in India. It makes sure you have the funds when you need them. This financing option is unsecured, which means lenders would not require you to pledge any asset as security for the loan. This is also why such loans carry a comparatively higher interest rate than secured loans, which can have simple interest or compound interest.
Having said that, while applying for a personal loan is undoubtedly easier, getting it approved and sanctioned can be challenging. How much of the amount is ultimately approved will depend on a mix of factors – your monthly income and credit score probably being the most important factors among them. The reason why your income is given precedence over the other determinants is that a lender would want to be sure of your ability to pay back the EMIs on time, thus removing any risk of default.
Before extending you a personal loan, there are other reasons behind considering your monthly income as a vital standard. Some of them are:
- The higher your income, the more will be your scope of borrowing.
- You will then be flexible with the chosen loan tenure as well.
- Higher the CIBIL Score, the more the chance of getting lower interest rates on a personal loan.
How much personal loan can I get on my salary?
Again, there is no standard income parameter to judge your suitability for a loan. However, to be eligible for getting a Bajaj Finserv Personal Loan, the minimum salary of Rs. 25,001 is required. While availing of a personal loan, the lender will check whether you have defaulted in the past or currently servicing any loan besides the one you are applying for.
The amount you are eligible to borrow is at the lender’s discretion. However, with Bajaj Finance Limited, the maximum personal loan amount you can get is up to Rs. 40 lakh. Lenders evaluate the monthly income of loan applicants and the potential growth in it before approving a loan. While these are general guiding principles for lenders, ensure that you have a good credit score and credit history. Any instance of previous default will hamper your chances of getting the desired loan amount or a favourable tenure and interest rate.
What are the eligibility criteria for personal loans for salaried individuals?
The eligibility criteria for our personal loan are as follows -
- Nationality: Indian
- Age: 21 years to 80 years*
- Employed with: Public, private, or MNC
- CIBIL score: 685 or higher
- Monthly salary: Starting Rs. 25,001, based on the city you live in
You should be 80 years* or younger, at the end of the loan tenure.
Documents required while applying for a personal loan
For a personal loan from Bajaj Finance, you have to submit documents such as:
- KYC documents such as Aadhaar, passport, driving licence, voter’s ID, or a Letter of National Population Register
- PAN card
- Cancelled cheque
- Bank account statements for the last 3 months
- Salary slips for the last 3 months
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