Regardless of the personal loan amount you apply for, the lender only approves for the sum that is in sync with your salary. NBFCs and other financial institutions believe that it might be hard for a borrower to repay the amount as monthly EMIs if the figure closes in on the overall income. For More Details Visit here: https://www.fullertonindia.com/personal-loan.aspx

Therefore, it is important to understand that the salary-related aspect and other factors can impact your eligibility if you plan to apply online for a personal loan.

• Total Income

Lenders evaluate your primary and secondary income before approving a certain sum. However, to increase the chances of approval, it is advisable to evaluate eligibility and apply for a lesser figure.

• Professional Stability

A higher income is of no use if you have an erratic professional standing. Therefore, job stability is also a factor that lenders take into consideration. The best way to depict the same is by showcasing the appointment letter and minimizing job changes.

• Debt-to-Income Factor

Loans might get rejected if you have multiple liabilities to take care of. Creditors believe that a higher ‘debt-to-income’ ratio renders the credit profile riskier than usual.

• CIBIL Score

If each of the mentioned aspects is in line within permissible limits, it finally comes down to your CIBIL score. Despite higher income and perfect personal loan documents, lenders keep a close eye on your credit profile when it comes to approving on rejecting loan applications. 

Getting approval for a particular loan amount depends on adherence to the mentioned aspects, with your salary having a massive bearing on the process.

Additional Read: How Technology Has Changed the Way we applying for personal loan