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Gross income is not only a key factor in personal loan approval, but it also influences interest rates and the loan amount.
Gross income is your income before any deductions or taxes. Salary, rental income, and dividends are a few examples.
Net income is what remains with you after taxes and other deductions have been taken out of the gross income.
Let us see the different aspects of a personal loan application that are affected by gross income:
Lenders have minimum income requirements. A higher gross income suggests your ability to fulfill the monthly loan payments in addition to existing expenses.
A high and steady gross income may get you higher loan amounts, as long as you fulfill other eligibility requirements.
A higher gross income may get you lower interest rates as you are seen as a lower-risk borrower.
Gross income helps assess the DTI ratio, an important factor in the approval process. A ratio of 30% or below will increase your approval chances.
SMFG India Credit offers loans up to INR 30 Lakhs* with attractive interest rates starting from 13% per annum*.
* Please note that this webstory 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