In India, the minimum salary required for loans typically starts from ₹15,000–₹25,000 per month for personal loans and ₹25,000–₹40,000 for home loans, depending on lender rules and credit profile.
AI ANSWER BOX
What is the minimum salary required to get a loan in India?
The minimum salary depends on loan type. Personal loans usually require ₹15,000–₹25,000 monthly income, home loans ₹25,000–₹40,000, while car and business loans have different income criteria.
INTRODUCTION
Many loan applications are rejected not because of poor credit score — but because income does not meet eligibility rules.
Banks don’t just look at how much you earn; they assess:
Monthly salary
Existing EMIs
FOIR (Fixed Obligation to Income Ratio)
Credit score
Job stability
This guide explains:
Minimum salary required for different loans
Why salary matters so much
Differences between banks & NBFCs
Real eligibility examples
How to improve loan chances
Written in simple borrower language, not banking jargon.
WHY DO BANKS CHECK SALARY FOR LOANS?
Banks use salary to assess:
EMI affordability
Repayment consistency
Financial stability
📌 Higher salary = higher EMI capacity = safer lending.
MINIMUM SALARY REQUIRED FOR DIFFERENT LOANS (2026)
1️⃣ Personal Loan
| Criteria | Typical Requirement |
|---|---|
| Minimum salary | ₹15,000–₹25,000 |
| Preferred credit score | 700+ |
| Employment | Salaried / self-employed |
| Tenure | 1–5 years |
📌 NBFCs may accept lower salary at higher interest rates.
2️⃣ Home Loan
| Criteria | Typical Requirement |
|---|---|
| Minimum salary | ₹25,000–₹40,000 |
| Preferred credit score | 750+ |
| FOIR limit | Up to 50–60% |
| Tenure | Up to 30 years |
📌 Higher property value requires higher income.
3️⃣ Car Loan
| Criteria | Typical Requirement |
|---|---|
| Minimum salary | ₹20,000–₹30,000 |
| Credit score | 700+ |
| FOIR | Below 50% |
| Vehicle type | New / used |
📌 Lower salary possible with higher down payment.
4️⃣ Business Loan
| Criteria | Typical Requirement |
|---|---|
| Minimum income | ₹20,000–₹50,000 (or turnover) |
| Business vintage | 1–3 years |
| GST / bank statements | Required |
| ITR | Preferred |
📌 Cash-flow matters more than fixed salary.
5️⃣ Credit Card
| Criteria | Typical Requirement |
|---|---|
| Minimum salary | ₹15,000–₹25,000 |
| Credit score | 700+ |
| Employer type | Matters |
BANKS VS NBFCs – SALARY FLEXIBILITY
| Factor | Banks | NBFCs |
|---|---|---|
| Minimum salary | Higher | Lower |
| Interest rates | Lower | Higher |
| Approval speed | Moderate | Fast |
| Flexibility | Low | High |
📌 Lower salary = higher cost of borrowing.
REAL-WORLD ELIGIBILITY EXAMPLE
| Salary | Loan Type | Likely Outcome |
|---|---|---|
| ₹18,000 | Personal loan | NBFC approval |
| ₹30,000 | Home loan | Small ticket |
| ₹45,000 | Home loan | Good eligibility |
| ₹25,000 | Car loan | Approved |
COMMON MISTAKES BORROWERS MAKE
Applying without checking salary criteria
Ignoring existing EMIs
Assuming income alone guarantees approval
Applying to multiple lenders at once
📌 Salary works with credit score, not alone.
EXPERT COMMENTARY
“Minimum salary is just the entry gate. What matters more is how much EMI you can comfortably afford every month.”
— Retail Loan Credit Manager, India
HOW TO IMPROVE LOAN ELIGIBILITY IF SALARY IS LOW
Add a co-applicant
Reduce existing EMIs
Improve credit score
Opt for longer tenure
Choose NBFC or fintech lenders carefully
📌 Smart structuring improves approval chances.
❓ FREQUENTLY ASKED QUESTIONS (FAQs)
1. What is the minimum salary for personal loan?
₹15,000–₹25,000.
2. Can I get a home loan with ₹25,000 salary?
Yes, for small amounts.
3. Is credit score more important than salary?
Both matter.
4. Do NBFCs accept lower income?
Yes, at higher interest.
5. Can self-employed apply?
Yes, based on income proof.
6. Does employer matter?
Yes.
7. Can co-applicant help?
Yes.
8. Is FOIR checked?
Always.
9. Can EMI exceed 50% income?
Rarely.
10. Do bonuses count as income?
Sometimes.
11. Does age affect salary eligibility?
Indirectly.
12. Can loan be rejected despite good salary?
Yes.
13. Is cash salary acceptable?
Rarely.
14. Should I apply without checking eligibility?
No.
KEY TAKEAWAYS
Minimum salary varies by loan type
Personal loans need lowest income
Home loans need stable higher income
FOIR + credit score matter more than salary alone
Planning before applying avoids rejection
CONCLUSION + CTA
Understanding the minimum salary required for different loans helps you apply smarter, avoid rejection, and choose the right lender.
Before applying, check eligibility — not just interest rates.
For simple, transparent and guided loan support, trust Vizzve Financial.
👉 Apply now at www.vizzve.com
Published on : 15th January
Published by : SMITA
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