Reasons Why Your Personal Loan Offer Might Be Lower Than Expected
8 April, 2025
Synopsis
Factors like your credit score, income and debt-to-income ratio influence your Personal Loan limit.
Loan tenure and interest rates also play a role in determining the size of the Loan you qualify for.
To secure a higher Loan, consider improving your credit score, increasing your income and opting for a longer Loan tenure.
It feels disappointing when you have planned for a Personal Loan only to find that the amount offered is far lower than what you expected. However, understanding why your Personal Loan amount may be lower can turn things around. So, read on to learn more about how you can increase your Personal Loan amount.
Reasons Why Your Personal Loan Offer Might Be Lower Than Expected
Here are key reasons why your Personal Loan limit might be lower than expected:
Your Credit Score and Credit History
Lenders use credit scores to assess your creditworthiness. A score of 750 or above is considered good. If your credit score is low, banks/lenders may offer you a reduced Loan amount or deny the Loan altogether.
Income and Employment Stability
Banks evaluate your income to assess your ability to repay the Loan. If you have a low or irregular income, or if you have recently changed jobs, the lender may offer a low Loan amount.
Your Debt-to-Income Ratio
If a large portion of your income is already tied up in existing debts (e.g., credit card bills or home loans), lenders may offer a lower loan amount to avoid overburdening you financially.
Tips to Improve Your Chances of Getting a Higher Loan Amount
If you are looking to secure a higher Personal Loan offer, here are a few tips to improve your chances:
Ensure your credit score is above 750 by paying off existing debts on time, keeping credit utilisation low and regularly checking your credit report for errors.
A higher, stable income increases your Personal Loan eligibility. Consider side gigs or additional sources of income and provide proof through salary slips or tax returns.
Having a co-applicant with a strong credit profile can increase your Personal Loan eligibility and help you secure a higher Loan amount.
Choose HDFC Bank Xpress Personal Loans
The criteria to evaluate your creditworthiness are standard and they can sometimes lead to offers that don’t fully meet your expectations. However, with HDFC Bank Xpress Personal Loans, you can benefit from a transparent, quick process that considers your unique financial situation. HDFC Bank’s digital platform allows you to explore customised Personal Loan amount limits and competitive interest rates that align with your needs. If your initial offer falls short, HDFC Bank’s flexible approach may provide you with a favourable Loan solution.
FAQs
Are there any restrictions on how I can use the Personal Loan funds?
Personal Loan funds can typically be used for any purpose, except for speculative investments or illegal activities. Always check with your lender for specific terms.
Can I increase my chances of getting a higher Personal Loan amount?
To increase your chances, try to improve your credit score, increase your income and reduce existing debt to secure a higher Loan amount.
What is the minimum and maximum Loan amount available for a Personal Loan?
The minimum and maximum Loan amounts vary by lender, but typically range from ₹50,000 to ₹75 lakh, depending on eligibility and income.
What are 3 factors that can affect the terms of a Loan for a borrower?
The following are the primary factors:
Credit score
Income level
Loan repayment history
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. Loan disbursement is at the sole discretion of HDFC Bank Limited and is subject to verification and documentation as per the bank’s requirements. Interest rates and offers may vary. Please check the official website for the changes/updates in the application procedure and other details.
