Personal Loan

Factors Other Than Salary That Decide Your Personal Loan Amount


A personal loan is the support system in times of emergency and even on your big days. The importance of personal loans is well-known to many of you. A personal loan is not given as per the personal desire of the lender. Apart from the salary, the availing of personal loans depends on many factors. In this article, you will find the factors that decide the amount of your personal loan other than salary.

What exactly is a personal loan?

personal loan is an amount that you borrow from banks or other Non-Banking Financial Companies (NBFCs). A personal loan needs you to pay an interest rate till the repayment period for the principal amount. Generally speaking, there is no need to provide security or collateral when applying for a personal loan. Unlike an educational loan, you can use this money to finance any of your needs.

Factors Other Than Salary That Decide Your Personal Loan Amount

Many factors decide your personal loan amount other than your salary. They include your age, credit score, occupation, etc. They are discussed in detail below.

Employment status: 

This is the prime factor in getting a personal loan. Banks and other institutions will hardly provide loans for an unemployed person. This is because of their inability to repay the loan. But you can either be a salaried employee or a self-employed individual.


The lenders (banks) will consider your age for fixing the principal amount. It is generally from 21 years to 60 years. The age criteria are different for different lenders. The minimum is your age; the maximum will be the chance for you to get a personal loan. This is because of the number of working years before retirement. Sometimes, if you are more than 60, you will be asked to submit collateral or security.


This is one of the important factors that lenders consider. The number of years of experience working in the same industry will be considered. For instance, person X has a working experience of 3 years and has changed three different fields. But person Y has a work experience of 10 years in the same industry. Without a doubt, the lender will prefer person X to person Y for a personal loan.

Credit (CIBIL) score:

A credit score is important for a personal loan and other financial activities. CIBIL Score is a three-digit number that shows your credit history. This scale ranges from 300 to 900. It is always advised to have a minimum score of 700 to obtain a personal loan. If you have a low credit score, don’t panic. It is possible to improve your CIBIL score. So it is better to check your credit (CIBIL) score online free of cost before planning for a personal loan.

Financial discipline: 

The lenders will see your past repayment history for a personal loan. This will make your profile low-risk. The timely payment of EMIs and interest will also be considered.

A good relationship with the lender: 

Transactions or any good financial record with the lending institution matters. This will help lenders to have good trust in your repayment. This will sometimes decide the interest rate for the personal loan. Because lenders won’t be stringent in this case.

Present market conditions and Government’s steps: 

The market conditions and the government’s steps directly decide your interest rate. They include inflation, recession, etc. Inflation is the general rise in prices. If there is inflation, you will be charged a high-interest rate. A recession is a period of decline in economical activities. During the recession, the interest rate will be lower.

The reputation of your organisation: 

If you are a salaried individual, the reputation of your organization matters. If you work in a well-known company, the chances for your personal loan will increase.

What are the features and benefits of a Personal Loan?

Minimum Documentation: When compared to other lenders, we’ll ask you for some basic documents. This will save you time and reduce your documentation burden. The documents are for proof of your identity, address, and your income. Check the required documents in advance to avoid a last-minute rush.

Principal Amount: The principal amount from us ranges even from Rs.1 Lakh.

Quick Sanction: We not only sanction your loan as soon as we can, but we also disburse funds quickly.

Use as you wish: This is the best benefit that you can get from a personal loan. Unlike other loans, you need not restrict the use of the principal amount. You can use the amount to finance almost any need. It may be your dream wedding or your medical emergency.

Low EMI: We will never charge high-interest rates for personal loans. It will be decided based on your ability and creditworthiness. This will also help in easy cash management.

Flexible Repayment Period: To pay your interests, you can choose any method (fixed type, floating type, or hybrid type). There is an option for pre-closure and pre-payments. It ranges from 12 months to 60 months.

Zero Pre-payment and Foreclosure charges: Before the actual tenure, if you have a bulk amount, you can pay off the loan. We’ll never charge extra for preclosing your personal loan. And there will be no pre-payment charges.

The Bottom Line

We hope that you understand the factors that affect your personal loan other than your salary. To learn more about personal loans and related topics, you can visit Piramal Finance. You can get in touch with us anytime. We at Piramal Finance will assist you as a team of experts. We will guide you in all the required processes.