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minimum salary for personal loan

Minimum Salary Required to Get a Personal Loan

A personal loan is an unsecured loan. You don’t have to show any collateral to the creditor in order to get the loan. The creditor’s risk is always higher for an unsecured loan. There’s no assured way for the creditor to recover the amount. Therefore, the creditors assess multiple factors about the borrower before approving a personal loan application. These factors include credit score, payment history, debt ratio, minimum salary, employment status, and more. The minimum salary is one of the most significant factors considered by creditors before approving a personal loan application. Every bank has its own policy when it comes to the minimum salary for a personal loan. We will talk about this factor in detail in this article.

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What is minimum salary?

The minimum salary is the amount that an individual gets in hand every month after all tax and PF deductions. It is the amount that an individual can actually spend on utilities, EMIs, etc. If you are taking a personal loan, you will be paying EMI from your in-hand minimum salary.

Why is the minimum salary considered by a creditor for a personal loan application?

As mentioned above, when it comes to a personal loan, the risk lies with the creditor. If the borrower defaults on the payment, the creditor has no guarantee to recover the loan amount. Therefore, it is very important for the creditor to approve a personal loan for individuals who can afford to pay monthly EMIs regularly.

Your income decides if you can pay the loan EMI amount regularly or not. If your monthly income is almost 80% of the EMI amount, you might default on your payments from time to time. Ideally, the EMI amount for all your financial commitments shouldn’t exceed 40% of your salary.

Also Read: Personal Loans for Self-Employed in India

Minimum salary required for a personal loan

Therefore, the creditors have set certain ceilings when it comes to the borrower’s minimum salary. The minimum salary to get a personal loan is set at Rs. 15,000 – Rs. 20,000 per month after all deductions. Metro cities (Delhi and Mumbai) creditors might consider Rs. 25,000 per month minimum salary for a personal loan.

Note: Minimum salary is set by individual banks/lending companies. The values can differ for every lender. The above-mentioned minimum salary is an average value. Please check with the lender to know more.

Minimum salary for Airtel Personal Loans

Airtel Flexi Credit provides you a personal loan from multiple lending partners. Each lending partner has its own set of policies when it comes to the minimum salary. For instance, Money View (a lending partner for Airtel Flexi Credit) requires applicants to have a minimum salary of Rs. 15,000. You can check with other lending partners about their criteria during the application process.

Remember, the minimum salary is not the only factor that is considered for a personal loan.

Other factors considered for a personal loan

Following are the other significant factors that are considered by the creditor for a personal loan:


Your age plays a significant role in the approval of a personal loan. Most lenders expect the borrower to be at least 21 years old. Some even have an age limit of 23 years. The ceiling goes up to 60 or 67 years depending on the lender.

Also Read: What is credit score and its importance?


Creditors usually check your overall work experience and your current work experience with the organization to see how stable you are. If you switch many jobs or are new to a company, it doesn’t show the stability of income. An individual with a new job or multiple job switches might not be able to pay monthly EMIs on time. The applicant should be at least employed for 1 year with the current employer.

Some creditors also check the reputation of your employer company. A company listed in the creditor’s database is always good for the applicant. If the company is reputed, the minimum salary requirement can be relaxed according to the creditor’s discretion.

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Other loans/credit

If you have other loans or a credit card with a huge bill, your loan application will be likely rejected. Other EMIs or credit card bills reduce your in-hand salary. This becomes a risk for the lender. Therefore, keep your credit utilization to a minimum for personal loan approval.

Home ownership

In case you live in a rented place, a portion of your salary goes towards the rent. This will reduce your disposable income and affect your ability to pay the loan.

Consider these factors before applying for a personal loan from Airtel Flexi Credit. Also, visit the personal loan EMI calculator page to see how much EMIs you will have to pay back each month.

Also read: Benefits of a personal loan