Approval & amount

What's the minimum income for a personal loan?

Short answer

Most online lenders require $24,000-$36,000 minimum annual income, though some accept lower with smaller loan amounts. Federal credit-union PALs have looser income requirements (often $1,500/month documented). The binding constraint is usually debt-to-income ratio, not income alone.

Context

There's no federal minimum income for personal loans, but lender-set thresholds reflect the reality that the loan's monthly payment has to fit a realistic household budget. A lender approving a $400/month payment on $20,000 annual income is setting the borrower up to fail.

For borrowers below typical income thresholds, options include: smaller loan amounts ($500-$3,000 range), credit-union PALs, secured loans backed by a vehicle or savings, or co-applicant arrangements with someone whose income meets the threshold.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

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