Individuals usually seek out personal loans when they encounter financial difficulties and their own savings are insufficient to meet their needs. As such, the decision to pursue a personal loan is not made lightly and often reflects a serious consideration of the available options for securing necessary funds. However, before applying for a personal loan, it's essential to know the minimum salary requirement. In this blog, we will discuss the minimum salary to get a personal loan from Shriram Finance
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Why is the Minimum Salary for Availing a Personal Loan Important?
A personal loan is a very popular financing option, especially among salaried individuals. It is very common to use a personal loan as a backup option. But it is very important to understand the eligibility criteria.
One of the most critical factors that determine your eligibility for a personal loan is income. A personal loan is an unsecured loan, which means that the lending institution does not require collateral to secure the loan. Instead, they rely on the borrower's creditworthiness, which is determined by their income, credit score and other factors.
For example, a borrower makes a decision to buy an expensive product based on the assumption that they could bank on a personal loan. After the purchase, however, they realise that they are not eligible for a personal loan on the basis of the minimum salary criteria. It can be extremely inconvenient to find oneself in this situation.
The only solution to this problem is to make sure we understand the full procedure and the complete information. Take the personal loan offered by Shriram Finance, for instance. Shriram Personal Loan offers a range of benefits, including competitive interest rates, flexible repayment terms, quick approval and disbursal.
Let’s take a look at the eligibility criteria for a personal loan in India.
Personal Loan Eligibility Criteria
To be eligible for a personal loan, one needs to meet certain criteria set by the lending institution. In addition to the minimum salary for a personal loan, here are some of the other eligibility criteria for Shriram Personal Loan:
- Age: The borrower must be at least 21 years old and not more than 60 years old when applying for the loan.
- Employment: The borrower should be a salaried individual or a self-employed professional with a steady source of income.
In addition to these criteria, the lending institution may also look at work experience, current employer and the current city of residence when assessing the borrower’s eligibility for a personal loan.
Lending institutions also look at parameters like credit score, employment history and other financial obligations. If the borrower has a low credit score or a high debt-to-income ratio, for example, they may not be eligible for a personal loan, even if they meet the minimum salary requirement.
The eligibility criteria may also be slightly different in certain specific cases. Based on the lending institution’s discretion, the borrower may be asked to provide more or less documents.
Personal Loan Eligibility Calculator
It may be difficult to understand the eligibility for a personal loan. After all, every situation is different. It is best not to rely on assumptions and be absolutely sure when it comes to determining our eligibility for a personal loan.
But how can we do that?
Shriram Finance offers an easy and convenient method to check the eligibility criteria for a personal loan. All one needs to do is fill out the following details on the Shriram Personal Loan online application and they will receive a call back from the Shriram Finance team.
When applying for a personal loan, it's important to keep in mind that this is a form of debt. No matter what kind of loan tenure is opted for, the amount will eventually have to be repaid. Not only that, the interest charges will also be included. It is important to judge the financial situation and determine whether we can afford to repay the loan.
In conclusion, a personal loan can be a useful financial tool to meet any short-term financial needs. However, to be eligible for a personal loan, the borrower needs to meet certain eligibility criteria set by the lending institution. In addition to the minimum income required for a personal loan, lending institutions also look at other factors such as credit score, employment history and financial obligations.
Shriram Personal Loan has been designed for maximum convenience. It is possible to complete the process entirely online and get the loan disbursement at a rapid rate. Visit Shriram Finance Website today to get started!
FAQs
1. My credit score is 650, can I get a personal loan?
It might be possible to get a personal loan with a credit score of 650. But this will depend on the lending institution.
650 is quite a low credit score and the disbursal of a personal loan, in this case, will be purely at the discretion of the lending institution. It is advisable to increase your credit score as much as possible before applying for any more loans.
2. What is the maximum repayment tenure I can get for my personal loan?
Generally, most lending institutions offer flexible tenures for personal loans. Shriram Personal Loan has been designed to fit the needs and requirements of the borrowers. It offers flexible loan tenures ranging from 1 year to 5 years.
The maximum repayment tenure that you can get for Shriram Personal Loan is 60 months.
3. What can you use the personal loan amount for?
This is one of the biggest advantages of a personal loan — the loan amount can be used for a variety of purposes. Unlike home loans and education loans that are earmarked for specific purposes, personal loans are more flexible in nature. From weddings and vacations to the purchase of expensive consumer durable products, a personal loan can be the answer.
