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!
|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.20 lakh if you’re salaried or self-employed. However, the final loan amount is at the sole discretion of Navi.
The following are the benefits of low-salary personal loans:
Note that the benefits may vary from one lender to another.
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 low-salary personal loan can vary from one bank to another, but the most common ones are:
You can follow the given steps to apply for a low-salary personal loan in India:
Go to the website of your preferred lender.
Log in to your account with the required credentials
Go to the personal loan section and select your salary bracket
Fill in your employment and personal details
Upload the relevant documents and submit.
Upon successful verification, a representative of the lender will contact you regarding the next steps.
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.
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.
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.
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 personal 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.
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.
Ans: Yes, you can apply for a low-income personal loan regardless of where you live. The lender’s primary concern is regarding your financial situation.
Ans: This range may vary from one lender to another but generally the minimum loan amount is Rs. 1,80,000 and it can be as high as Rs. 50 lakh.
Ans: Yes, some lenders provide a personal loan to individuals earning less than Rs. 10,000 per month. However, note that the loan amount will be lower.
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