Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.


Personal loans are unsecured loans which can tide us over in situations where we need quick funds. These can be planned or unplanned requirements such as marriage expenses, education expenses or medical expenses etc. and a small personal loan can alleviate the financial stress of the occasion.  Every financial institution has certain eligibility criteria for giving out personal loans. These vary from one lender to another.

What is the Minimum Salary?

The minimum salary required for a personal loan varies among lenders and is contingent on multiple factors. Generally, it is the lowest monthly income a borrower needs to qualify for a loan. Lenders set diverse minimum salary thresholds based on the loan amount, the borrower's creditworthiness, and lender’s policies. This criterion is pivotal in assessing the applicant's repayment capacity, aligning with responsible lending practices. Prospective borrowers should check with specific lenders to determine the minimum salary requirements applicable to their desired loan amount and ensure their income meets or exceeds the stipulated threshold for eligibility. Minimum salary requirement for individuals living in cities other than Mumbai or Delhi is INR 20,000 and minimum salary requirement for individuals living in Mumbai or Delhi is INR 25,000. 

What is the Role of Monthly Salary in Defining Personal Loan Eligibility?

The monthly salary plays a pivotal role in defining personal loan eligibility. Lenders assess the borrower's income to evaluate their capacity to repay the loan. A higher monthly salary with zero or very few obligations generally enhances eligibility, signaling greater financial stability and repayment capability. The salary amount influences the sanctioned loan amount and interest rates. A substantial income often leads to more favorable loan terms.

Conversely, a lower salary, or a high salary with high monthly obligations may impact eligibility, resulting in either a lower loan amount or higher interest rates. The monthly salary, therefore, acts as a key determinant in shaping the borrower's eligibility for a personal loan and significantly influences the loan terms offered by the lender.

Importance of Minimum Salary for Personal Loans

The minimum salary requirement holds paramount importance in personal loan approval processes. It serves as a crucial criterion for lenders to assess the borrower's financial capability to repay the loan. 

A minimum salary threshold helps ensure that the borrower has a stable income stream, reducing the risk of default. Lenders use this benchmark to align the sanctioned loan amount and interest rates with the borrower's ability to comfortably meet monthly repayments. Setting a minimum salary requirement is a prudent practice that safeguards both the borrower and the lender, ensuring responsible lending and minimizing the likelihood of financial strain on the borrower.

Impact of Credit Score and Minimum Salary

The impact of both credit score and minimum salary is substantial in the context of personal loan approvals. A good credit score is crucial for favorable loan terms. It reflects the borrower's creditworthiness and financial responsibility. A higher credit score often leads to lower interest rates, higher loan amounts, and better overall terms. Conversely, a lower credit score may result in higher interest rates or rejections. The minimum salary requirement helps lenders gauge the borrower's ability to repay the loan. It ensures a baseline of financial stability. A higher minimum salary can positively influence loan eligibility, sanctioned amounts, and interest rates, reducing the risk of default. 

Conversely, a lower minimum salary might limit loan approval or lead to less favorable terms. In summary, both a good credit score and a sufficient minimum salary contribute positively to personal loan approval, offering borrowers chances of getting better loan terms and increased financial flexibility.

Factors Affecting Instant Personal Loan Eligibility

Several factors influence instant personal loan eligibility, determining whether a borrower qualifies for rapid loan approval. Key factors include:

  • Credit Score: A higher credit score indicates creditworthiness and positively impacts eligibility.
  • Income Stability: Lenders assess the borrower's monthly income to ensure repayment capacity.
  • Employment Status: A stable employment history enhances eligibility, demonstrating a secure income source.
  • Debt-to-Income Ratio: Lenders evaluate the ratio of existing debts to income to gauge the borrower's financial health.

Features of Personal Loans in India

  • Unsecured Nature: Personal loans in India are typically unsecured, requiring no collateral, making them accessible without risking assets.
  • Flexible Usage: Borrowers can use personal loan funds for various purposes, including medical expenses, travel, education, or debt consolidation.
  • Quick Approval: SMFG India Credit offers swift approval processes for personal loans, enabling borrowers to access funds promptly.
  • Repayment Tenure: Personal loans offer repayment tenures between 12 and 60 months, allowing borrowers to select a loan tenure that is aligned with their financial capabilities.

How do you Apply for a Personal Loan?

  • Check Eligibility: Review the lender's eligibility criteria, considering factors like age, income, and credit score.
  • Gather Documents: Collect necessary documents, such as proof of identity, address, income statements, and employment details.
  • Online or In-person Application: Choose between applying online through the lender's website or visiting a branch in person. Online applications are often more convenient and offer faster responses.
  • Fill Application Form: Complete the application form, providing accurate information about personal, financial, and employment details.
  • Submit Documents: Upload or submit the required documents as required.
  • Verification Process: The lender will verify the provided information and documents, which may include a credit check.
  • Loan Approval and Disbursement: Upon successful verification, the lender will approve the loan, specifying the sanctioned amount, interest rate, and repayment terms.After approval, the loan amount is disbursed to the borrower's bank account within 30 minutes*.
  • Post-Disbursement Support: Stay informed about your repayment schedule, and reach out to the lender's customer support for any queries or assistance.

Eligibility Criteria and Documentation Needed to Apply for a Personal Loan

Eligibility Criteria for a Personal Loan:

Here are some of the basic eligibility criteria for a personal loan. Please note that depending on the lender’s policy, additional criteria may also apply.

  • Age: Applicants typically need to be within a specified age range, often between 21 and 65 years (not more than 65 years by the time of loan maturity).
  • Income: Lenders set minimum income requirements to ensure the borrower's ability to repay the loan. Minimum salary is Rs. 25,000 for residents of Mumbai and Delhi; and Rs. 20,000 for residents of other cities.
  • Credit Score: A good credit score of at least 750 enhances eligibility, showcasing the borrower's creditworthiness.
  • Employment Status: Stable employment or a regular source of income is crucial for loan approval. 
  • Work Experience: Lenders may require a minimum period of work experience, demonstrating stability. At SMFG India Credit, applicants must have an overall work experience of at least 1 year, with at least 6 months in their current organisation.

Documentation Needed for a Personal Loan:

  • PAN Card
  • Proof of Identity: Aadhaar card, passport, or driver's license.
  • Proof of Address: Utility bills, rental agreement, or Aadhaar card.
  • Income Proof: Salary slips, bank statements, or income tax returns.
  • Signature proof (Passport, PAN card, etc.)
  • Bank statements of the past 6 months

Please note that these are just the basic documents. Depending on your profile and the lender’s policy, additional documents may be requested.

Reasons Why Lenders Have to Set Minimum Salary Requirements

Lenders set minimum salary requirements for personal loans to mitigate risks associated with defaults and ensure borrowers possess the financial capacity to meet repayment obligations. This criterion acts as a crucial indicator of a borrower's stability, reducing the likelihood of financial strain and ensuring responsible lending practices. Lenders also evaluate the applicant’s existing obligations such as credit card debt, other loans and so on to determine the borrower’s repayment capacity. Some lenders like SMFG India Credit also do not accept applications from individuals who receive their salary in cash.

By aligning the sanctioned loan amount with the borrower's income, lenders prevent over-leveraging and adhere to regulatory guidelines.

SMFG India Credit Personal Loan Overview   Check Your Eligibility  

Page also available inहिन्दी - Hindi

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us


Is it possible to get a personal loan online with a low salary?

It may be challenging to secure a personal loan online with a low salary, as lenders typically consider income for loan approval. At SMFG India Credit, minimum salary criterion is Rs. 25,000 for applicants from Mumbai & Delhi, and Rs. 20,000 for applicants from other Indian cities.

What is the age limit for a personal loan?

The age limit for a personal loan varies among lenders but typically ranges between 21 and 65 years. Some other lenders may have flexibility within this range based on individual policies. At SMFG India Credit, one must be at least 21 years of age while applying for a personal loan, and not more than 65 years of age by the time of loan maturity.

How do lenders verify my income when applying for a personal loan?

Lenders verify income through documents such as salary slips, bank statements, Form 16 and / or income tax returns to assess the borrower's income.

Can I get a personal loan if I have a low salary but a high credit score?

While a high credit score positively influences loan approval, a low salary which does not meet the lender’s minimum salary criteria could lead to a rejection. Lenders usually consider both factors to determine eligibility and terms. Hence, before applying, one must always check the lender’s website to ensure they meet the lender’s eligibility criteria for a personal loan in terms of minimum salary as well as other factors.

12 Months60 Months

Your Calculated EMI*


Reasons to buy

You can take our personal loan for a variety of reasons.

Wedding Expenses

Wedding Expenses

Higher Studies

Higher Studies

Exotic Vacations

Exotic Vacations




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