New Delhi, Dec. 16 -- Banks and NBFCs have various eligibility criteria for personal loans. Some of these include having a good credit score, being within a specified age range, meeting the minimum income requirement, a favourable debt-to-income ratio, employment status, among others. The bank uses the applicant's income to assess their personal loan repayment capacity. In this article, we will understand the minimum income requirement for various banks to be eligible for a personal loan.

When a bank or an NBFC gives a loan, they need to assess whether the borrower has the repayment capacity. They also need to assess whether the borrower will be able to pay the loan EMIs on time without stretching their finances. Assessing the borrower's...