What Is the Minimum Income Required to Be Eligible for a Personal Loan?
Written by Dev Sethia
3 min read | Updated on November 12, 2025, 17:38 IST
Minimum Income Requirement for Personal Loan
The Basic Income Requirements
For salaried individuals
For self-employed individuals
Why Does Your Income Matter?
Beyond Income Levels
Other Factors That Matter
How to Improve Your Chances of Getting a Personal Loan
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Minimum Income Requirement for Personal Loan
Planning to take a personal loan but worried if your salary is enough to qualify for a loan? Or if you qualify, what is the maximum loan amount you can avail? This is one of the most common questions people ponder when they need quick funds for a wedding, medical emergency, home renovation or any other unexpected expense.
But income level alone does not make you eligible for a certain loan amount. It also depends on whether you have existing loans, how sustainable your income is, whether you are salaried or self-employed and what your credit score is.
For now, for income, let’s break it down in simple terms.
The Basic Income Requirements
Most banks and NBFCs (Non-Banking Financial Companies) in India have different minimum income criteria depending on where you live. We can safely assume below income levels below.
For salaried individuals
Scenario 1
If you live in a metro city like Mumbai, Delhi, Bangalore or Chennai, banks usually require a minimum monthly income of ₹15,000 to ₹25,000
Scenario 2
For those living in smaller cities and towns, the requirement is slightly lower, around ₹12,000 to ₹15,000 per month
For self-employed individuals
Scenario 1
Business owners and self-employed professionals in general need to show an annual income of at least ₹2 lakhs to ₹3 lakhs
Scenario 2
Some lenders may ask for higher income proof, depending on the loan amount you are applying for
But as said, having the minimum income does not guarantee approval. Banks look at several other factors, too.
Why Does Your Income Matter?
When someone borrows money from you, before obviously think about your moneys security. You try and gauge by when will this person return the money or if at all he or she will even return. You analyse this by understanding the borrowers' present and possible future income levels.
The same is with banks, but just that it happens in a systematic way. When banks or financial institutions lend you money, they want to be confident that you can repay it comfortably without struggling. Your income is the primary source from which you will repay the loans in the form of an EMI (Equated Monthly Installment).
If your income is too low compared to the loan amount you are asking for, the banks will simply reject the loan because they doubt your repayment capacity.
Beyond Income Levels
Even if you meet the minimum income requirement, banks will calculate something called your ‘debt-to-income ratio’. This means they will check how much of your income is already going toward existing loans or credit card bills.
For example, if you earn ₹30,000 per month but already pay ₹18,000 in EMIs for other loans, banks will hesitate to give you another loan. The lenders usually prefer that your total EMI obligations do not exceed 40-50% of your monthly income.
Other Factors That Matter
Your income is important, but not the only criteria. Banks also look for
Your credit score
A good CIBIL score (750 or above) qualifies you as a good borrower and can increase your loan qualification amount.
Job stability
If you have been working with the same company for at least a year, it shows stability and here lenders become confident about your employment status.
Company profile
Employees of reputed companies or government organisations often get better terms
Age
Younger applicants might face stricter scrutiny as they have less work experience
How to Improve Your Chances of Getting a Personal Loan
Check with the lender if they can sanction your desired amount. If not, ask them what can be done. They will usually suggest one or more of the following,
-
Apply for a lower loan amount
-
Add a co-applicant to boost eligibility
-
Improve your credit score by paying off existing debts and clearing any pending bills
-
Choose a longer tenure to reduce your monthly EMI burden
While most lenders require a minimum monthly income of ₹15,000 to ₹25,000 for personal loans, remember that this is just one piece of the puzzle. Your overall financials, credit history and repayment capacity matter equally.
Before applying, use online EMI calculators to check your eligibility and also if you can comfortably afford the monthly payments. After all, a loan should help solve your financial needs, not create new problems.
About Author
Dev Sethia
Sub-Editor
a journalism post-graduate from ACJ-Bloomberg with over three years of experience covering financial and business stories. At Upstox, he writes on capital markets and personal finance, with a keen focus on the stock market, companies, and multimedia reporting. When he’s not writing, you’ll find him on the cricket pitch
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