Looking for a personal loan? You won’t get one if your monthly income is below…

financialexpress.com:

Did you apply for a personal loan and receive a rejection from the bank despite having a good CIBIL score? Though there are several grounds on which a bank can reject a loan application, one reason might be your repayment capacity.

While considering a loan application, the foremost thing that lenders see is the applicant’s monthly income. So, basically, your loan eligibility mostly depends on your repayment capacity. This applies to all loans, including personal loan. For personal loan seekers, the income level is one of the key factors because good monthly earnings, from salary or business, reduce risks for the lender.

You might find yourself in a situation where your CIBIL score is good, yet your loan application is rejected by the bank. In such instances, the threshold income becomes significant, as the lender may have assessed that your repayment capacity does not meet their expectations. All banks and non-bank lenders adhere to set guidelines when considering loan applications, and the threshold income level is a key component of these rules. The minimum income requirement for sanctioning a loan may vary from lender to lender as they use various methods and have different criteria to consider a loan application.

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If your monthly income is less than Rs 20,000, the chances are that your loan application will be turned down by the bank. This threshold limit further increases as your loan amount rises. In case of non-bank lenders, this threshold income requirement is low.

“Lenders have a threshold income below which they will not lend. Usually, this limit is set at around Rs 20,000-Rs 30,000 a month, however, if your loan is of higher