A salaried individual with a monthly income of ₹50,000 is likely to get a loan from most lenders.
But getting approval for a personal loan for 15,000 salary per month may not be easy. This kind of difference may exist as many banks tend to draw their approval line towards the income level.
A non-banking financial company’s priority is this kind of work. They ensure to check employee’s salary consistency and employer type to offer the best to them. Several lenders may reject the loan based on the salary. Some others may promise instant approval. It is not necessary that all of them may be legit. This is why it is important to know and understand your options. Read the blog further to understand the eligibility and practical tips.
What is the Eligibility for a Personal Loan for 15,000 Salary
When it comes to knowing the eligibility, several banks prefer a salary of ₹20,000 to ₹25,000 per month. A higher salary plays an important role in loan approval. Therefore, applying for a ₹15,000 loan can be a lost cause in most cases. Some lenders list this figure as the minimum salary for a personal loan. But they may check other factors like credit score and employer profile as well. The income criteria also depend on the city from where the applicant has applied for the loan.
There are many lenders who will offer to reduce their income bar for the same city loan applicants. For example, a Mumbai or Bengaluru salary of ₹15,000 may stretch differently than the same number in a different city. Many may not consider that distinction and apply one national threshold regardless of pin code. Salary alone won’t get anyone approved, though.
There are many employers who carry real weight. For example, a government job or a listed company or maybe five years at the same employer can tend to reduce the risk to an underwriting model than someone two months into a new role at an unregistered small firm.
When it comes to a CIBIL score, know that above 700 helps more than enough. But several non-banking financial companies, Finnable being one of them, will ensure to consider a person who is a first-time borrower with no score at all. It has a fast process and simple application procedure. Such options might be great for applicants who are looking for quick approval. They should also be aware that lenders also consider existing debt obligations while evaluating a loan. It holds as much importance as their monthly income.
Is there any Limitations on a Loan That a Person Can Borrow?
Lenders usually check their applicants’ existing debt obligations while evaluating loan applications. This helps them assess an individual’s capacity to repay the loan. An applicant whose total EMI obligation is up to 40-50% of net monthly income has a higher chance of getting loan approval. Suppose an individual’s net monthly income is ₹15,000. Then his total EMIs should not be more than ₹6,000-7,500 per month.
Apart from debt obligations, the final loan amount depends on other factors. This includes the applicant’s credit score, income and job stability, employer profile, etc. First-timers with no credit file tend to sit at the lower end until a repayment of history exists.
Which Lenders Work at This Income Level
Many NBFCs consider applications of someone with a monthly salary of ₹15,000. But such applicants should also fulfil other criteria based on job stability, employer profile, etc. Finnable, an RBI-licensed NBFC, offers personal loans of up to 10 Lakh. It has a minimum salary requirement of ₹15,000 per month. The lender also prefers applicants with CIBIL score of 675 and above. But it also considers applications of first-time borrowers with no score. The lender weighs their income stability and employer profile instead.
The lender offers interest rates starting from 16% p.a. with tenures of up to 60 months. The loan disbursal for eligible salaried applicants can happen in 60 minutes. Several other app-based lenders operate in the same space. They usually offer faster loan disbursal and lower income criteria than traditional lenders.
Documents Needed for a Personal Loan
Lenders usually ask for identity, address, and income proof documents for a loan. The documents required for a personal loan are usually similar across lenders. It does not change much at this income level. The main documents for a personal loan for 15000 salary are:
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Aadhaar and PAN
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Salary slips of last 3-6 months
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Bank statements of last 6 months, showing regular salary credits.
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Employment letter.
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ITR filings of last 2 years.
Practical Tips to Improve Approval Chances
Applicants can improve their chances of loan approval by taking just a few steps. They can should first check their credit scores. Several platforms offer free CIBIL score checks. Most lenders have a minimum score criteria below which they reject applications. Hence, checking the score in advance helps avoid applying with lenders asking for higher scores.
Repaying EMIs regularly and clearing past loan or credit card dues can also help improve credit scores. Lenders prefer applicants with no past dues. It is a signal of their creditworthiness.
Having a lower credit utilisation ratio also helps. This ratio measures the percentage of outstanding credit card balance against the available credit limit. A ratio lower than 30% improves the chances of loan approval. Lenders consider this to assess an applicant’s repayment capacity. In some cases, it can also help you get a higher sanctioned amount or lower interest rates. Salaried applicants should also keep their salary credited in the same bank account for at least 6 months. This helps to create a more stable transaction history.
Adding a co-applicant can also improve the chances of loan approval. This is useful if the primary applicant has a lower income. Adding a spouse or family member, with an independent income, is a good option. A co-applicant helps when the primary applicant’s salary is lower than the lender’s minimum requirement. Applicants should avoid applying for loans with multiple lenders. Every loan application creates a hard inquiry on your credit profile. Multiple hard inquiries in a short time can reduce your credit score. It also signals financial stress to lenders.
