How To Apply For A Low Salary Personal Loan Online – A Step-By-Step Guide

Personal Loans

Personal loans are unsecured and they come with stringent eligibility criteria. This ensures that only borrowers who are 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. However, many lenders offer low salary personal loan to individuals in need. 

If you have a financial emergency,  ensure that your loan application is not rejected by learning about how to get a personal loan on a low salary. Keep reading!

Income Bracket and Loan Amount Sanctioned for Different Salary Levels

*You can get a Navi Personal Loan up to Rs.20 lakh if you’re salaried or self-employed. However, the final loan amount is at the sole discretion of Navi.

Benefits of Availing Low-Income Personal Loans

The following are the benefits of low-salary personal loans:

• No collateral:  Personal loans are unsecured loans. You don’t have to mortgage any asset to avail this loan.
• Repayment tenure:  You can pay off the loan amount through EMIs over a tenure of 5 years. This tenure may be more or less depending on the terms and conditions of the lender.
• Immediate approval: The application process is uncomplicated and smooth. Once the documentation is done, your loan is approved within no time.
• Prompt disbursement: Upon successful documentation, your loan amount is disbursed to the bank account within 24 hours.
• Loan amount: The loan amount for a personal loan can be as high as Rs. 50 lakh, depending upon the terms and conditions of the lender.
• No hidden charges: There are usually no hidden charges as there is less complication with regard to the documentation process of an unsecured loan. However, be sure to go through the documents before signing them.

Note that the benefits may vary from one lender to another.

Eligibility Criteria for a Low-Salary Personal Loan

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:

• Age: 23 to 65 years.
• Employment: Salaried employees or self-employed professionals. An unemployed individual can obtain this loan as a co-applicant with a salaried member.
• Minimum monthly income: Around Rs. 20,000. This number can vary with each bank and NBFC.
• Credit score: Minimum credit score of 750.
• Work experience: Minimum 1 to 2 years. This can vary with the employment status of a borrower. 

Documents Required for a Low-Salary Personal Loan

Documents required to apply for a low-salary personal loan can vary from one bank to another, but the most common ones are:

• Identity proof: PAN card, passport, Aadhar card, driving license
• Residence proof: Passport, bills, agreement of residence, ration card
• Salary slip of last 3 months for salaried employees and 6 months for self-employed individuals
• Business details like the practice license and income tax returns for self-employed borrowers
• Passport-size picture

Also Read: Get Instant Cash Loan in 1 Hour Without Documents: Interest Rate & Eligibility

How to Apply for a Low Salary Personal Loan in India

You can follow the given steps to apply for a low-salary personal loan in India:

Step 1: Go to the website of your preferred lender.

Step 2: Log in to your account with the required credentials

Step 3: Go to the personal loan section and select your salary bracket

Step 4: Fill in your employment and personal details

Step 5: Upload the relevant documents and submit.

Upon successful verification, a representative of the lender will contact you regarding the next steps. 

Can You Apply for an Unsecured Loan without a Salary Slip?

Among the documents required for verification, lenders ask for income proof. They usually accept the salary slip as income proof for unsecured loans such as a personal loans. However, for self-employed individuals, it is not possible to have a salary slip. In such cases, alternate proof of income such as the latest bank statements, Form 16 or ITR will serve as income proof. 

Things to Consider While Applying for a Low-Income Personal Loan  

Here are some factors that every borrower should consider before selecting a low-income personal loan.

Interest rate

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.

Credit score

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

Keeping note of the EMI

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. 

Final Word

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.20 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.

FAQs on Low Salary Personal Loan

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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