Different Personal Loan Offers at Same Salary Explained

Why Same Salary Doesn’t Guarantee Same Loan Terms

You and your colleague earn ₹50,000 monthly, work at similar companies, and are the same age. Yet when you both apply for a personal loan, they get approved for ₹8 lakhs at competitive rates, while you’re offered ₹5 lakhs at higher EMIs.

According to RBI data, India’s personal loan market grew 25% to ₹10.18 lakh crore in 2024, but approval rates vary drastically even for similar profiles. This happens because lenders look beyond salary to assess your complete financial picture.

Credit Score Goes Beyond the Three-Digit Number

Your CIBIL score might show 750, the same as your friend’s, but the underlying factors create different personal personal loan offers in the same salary situations. Credit bureaus weigh payment history at 35%, which means a single 30-day delay two years ago still impacts your profile.

Consider two profiles: Raj has a 750 score with consistent payments, while Priya also scores 750 but had two credit card delays last year. TransUnion CIBIL data shows this difference can increase personal loan rates by 3-5% annually. For a ₹5 lakh loan over 36 months, Raj might pay a ₹16,600 EMI, while Priya faces ₹17,800.

Length of Credit History Matters

• Raj: 7-year credit history with multiple products.
• Priya: 3-year history with only one credit card.
• Impact: Longer history signals stability, improving loan terms.

Debt-to-Income Ratio Creates the Real Difference

Two people earning ₹60,000 monthly can have vastly different borrowing capacities. Your existing EMIs, credit card dues, and other obligations determine how much additional debt you can handle.

Profile A: ₹60,000 salary, ₹15,000 existing EMIs (25% utilization)
Profile B: ₹60,000 salary, ₹30,000 existing EMIs (50% utilization)

Lenders prefer debt-to-income ratios below 40%. Profile A qualifies for larger amounts and better rates, while Profile B faces restrictions or rejections. This explains different personal loan offers at the same salary scenarios where income appears identical but financial obligations vary significantly.

Credit Utilisation Impact

High credit card utilisation above 30% signals financial stress. Even with the same salary, someone using 20% of their credit limit gets better offers than someone at 60% utilisation. Check your credit score regularly to monitor this crucial factor.

Lender Algorithms Assess Beyond Basic Details

NBFCs and digital lenders use sophisticated algorithms that analyse employment stability, bank statement patterns, and recent financial behaviour. Your salary certificate shows ₹50,000, but your bank statements reveal the complete picture.

Employment Stability Factors:

• Time with current employer (minimum 1 year preferred).
• Industry type and company reputation.
• Salary growth trajectory over 6-12 months.

Recent financial behaviour heavily influences offers. Multiple loan inquiries within 6 months signal desperation to lenders. RBI data shows 30% of users report “similar profile” discrepancies in offers from NBFCs, largely due to these hidden assessment factors.

Digital Footprint Analysis

Modern lenders analyse your digital behaviour through app usage, transaction patterns, and even social media presence. This creates personalised risk profiles that explain why identical salaries yield different terms.

How to Improve Your Loan Profile

Understanding these factors helps you optimise your profile for better personal loan offers. Start by addressing the most impactful areas:

Immediate Actions (1-3 months):

1. Pay down credit card balances below 30% utilisation.
2. Avoid multiple loan applications within 6 months.
3. Maintain consistent salary credits in your primary account.

Medium-term Improvements (3-6 months):

• Build an emergency fund to show financial stability.
• Close unnecessary credit cards to improve credit mix.
• Ensure all EMIs and bills are paid on time.

Long-term Profile Building (6-12 months):

• Diversify credit products (mix of secured and unsecured loans).
• Increase credit limits without using them.
• Maintain stable employment and residence.

Airtel Finance offers personalised personal loan solutions from ₹10,000 to ₹9 lakhs with competitive rates, helping you understand exactly what you qualify for before applying.

Smart Application Strategy for Better Offers

Getting different personal loan offers at the same salary becomes less frustrating when you approach applications strategically. Research multiple lenders, but avoid applying to all simultaneously. Use pre-qualification tools that perform soft credit checks without impacting your score.

Time your applications when your profile is strongest – after salary hikes, bonus payments, or debt reductions. This positions you for better terms and higher approval amounts. The key is understanding that salary is just one piece of the lending puzzle, and optimising other factors can significantly improve your offers.

FAQs

1. Why do I get different offers than my colleague with the same salary?

Credit scores, existing debt levels, and recent financial behaviour create unique risk profiles even with identical salaries, leading to varying personal loan terms.

2. What credit score ensures the best personal loan rates?

Aim for 750+ for prime rates; scores below 700 often result in higher rates or rejection despite good salary levels.

3. How does existing debt affect my new loan approval?

High debt-to-income ratios above 40% limit approval amounts and increase rates, even with sufficient salary to support additional EMIs.

4. Can multiple loan applications hurt my chances?

Yes, 3+ hard inquiries within 6 months drop scores by 10-20 points, signalling financial stress to lenders regardless of income.

5. How quickly can I improve my loan profile?

Basic improvements like reducing credit utilisation take 1-3 months to reflect, while building a comprehensive credit history requires 6-12 months of consistent behaviour.