As personal loans are unsecured, they come with stringent eligibility criteria, which ensures that only borrowers able to repay the amount get them. Many borrowers fail to obtain a personal loan as they cannot meet the salary requirement set by many financial institutions.
There could be a time when you may need loans for an emergency. To ensure that your loan application is not rejected, let’s get into the details of getting a personal loan on a low salary.
|Salary Bracket||Bank/NBFC Name||Loan Amount||Loan Tenure|
|-*||Navi||Up to Rs. 5 lakh||5 years|
|Rs. 15,000||Axis Bank||Rs. 50,000 to Rs. 15,00,000||12 to 60 months|
|HDB Financial Services||Up to Rs. 20,00,000||12 to 60 months|
|IDBI Bank||Rs. 25,000 to Rs. 5,00,000||12 to 60 months|
|EarlySalary||Upto Rs. 5,00,000||90 days to 36 months|
|Rs. 20,000||Fullerton India||Upto Rs. 25,00,000||12 to 60 months|
|IDFC First Bank||Up to Rs. 40,00,000||6 to 60 months|
*You can get a Navi Personal Loan up to Rs.5 lakh if you’re salaried or self-employed. However, the final loan amount is at the sole discretion of Navi.
Also Read: Benefits of taking a loan from NBFCs
Apart from the salary requirement, the eligibility criteria for low-salary loans are the same as those for personal loans. Some parameters might differ from one bank to another, but generally, the prerequisites are:
Documents required to apply for a personal loan can vary from one bank to another, but the most common ones are:
Here are some factors that every borrower should consider before selecting a low-income personal loan.
Every financial institution will levy different interest rates on their personal loan products. The rate of interest will have an impact on the loan amount that you will have to pay. It is important to compare different loans and different banks to select a plan that will not hamper your financial goals.
Banks require each borrower to have a minimum value of credit score. Higher the score, the higher the chances of getting a loan despite having a low income. To get a loan at a low-interest rate, you may want a credit score of over 750.
Also read: How to improve your credit or cibil score
Every loan will require you to pay an equated monthly instalment. All personal loans for low income will specify this amount, and it will vary with each loan, hence making the decision of choosing a personal loan tenure an important step. Thus, noting the payable EMI is important because your credit score will go down if you cannot pay it even for a month.
Getting a low-salary personal loan is not easy, but it is possible. Banks and other financial institutions have started recognizing the financial demands of those who earn a low salary.
However, even though these loans are designed for individuals with low-income, you need to consider the EMI, interest rates, and other fees before applying.
You can download the Navi app to get loans up to Rs.5 lakh at low rates. Any salaried or self-employed individual can apply for this loan. The end-to-end loan application to disbursal process is 100% paperless.
Ans: The time to process a loan differs from one bank to another. After the documentation is completed, the lender usually takes around 72 hours to process a personal loan.
Ans: A lender may charge documentation fees, processing fees, stamp duty charges, penal interest, and other extra fees for a personal loan.
Ans: Yes. Usually, banks giving low-salary personal loans keep a higher value for the monthly salary earned by those living in metropolitan cities. Borrowers in rural and semi-urban areas can get this loan with a lower salary than those in metropolitan cities.
Ans: The inability to pay the EMI for a low-salary loan will lower your credit score. Even one missed payment can hamper your chances of getting another loan in the future.
Ans: No, you can not get a low-salary loan after getting your first pay. The eligibility criteria for this loan in every bank require at least one year of work experience.
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