How to Secure a Personal Loan on a Low Salary: Strategies and Tips
The Aadhar Card Loan is an unsecured loan, i.e., no collateral is required, and it covers any type of financial necessity. Applying for a loan is much easier with reduced documentation. Applicants can provide an Aadhar Card and other documents online to complete the verification process, also known as e-KYC. It’s better to link the mobile number to the Aadhar card and PAN card to make the process faster and smoother. The minimum salary of the applicant shall be INR 20,000 or higher.
However, if the applicant is pursuing a personal loan and has a salary of less than INR 20,000, that does not imply that you have no chance of availing of a loan. Obviously, the amount to be disbursed will be dependent upon the monthly income, repayment capacity, company profile, etc. In case the bank does not offer conventional personal loans to low-salaried candidates, there are many NBFCs that offer personal loans to such individuals. There is a simple requirement to look for the right lender.
Features of Personal Loans for Low-Salaried Individuals
Mentioned below are the salient features of personal loans for low-salaried individuals:
- Low-Minimum Income: They can accommodate applicants with low income, providing access to funds even if you have quite a low salary.
- Flexible Eligibility Requirements: As we know, all individuals are different; hence, considering one factor or the other, lenders ensure a holistic evaluation of the financial situation.
- Competitive Interest Rates: Despite lower incomes, competitive interest rates can still benefit one, making repayment more manageable.
- Customised Loan Amounts: This option provides flexibility in choosing the loan amount, allowing you to borrow only the amount required for a specific purpose.
- Flexible Repayment Tenure: Get flexibility in the tenure of repayment.
- Quick Approval and Disbursal: A quick approval and fast disbursal of funds ensures that you receive the funds as and when required.
- Minimal Documentation: This process uses minimal documents, i.e., it is completely paperless, hassle-free, and saves time and energy.
- No Collateral Required: As we know, personal loans are unsecured loans; there is no need to secure the loan by pledging the assets.
Eligibility Criteria
Mentioned below are the eligibility parameters that are to be met in order to apply for a Loan for Low Salary:
- The minimum age of an applicant shall be 21 years.
- The maximum age of an applicant shall be 60 years.
- An applicant should have a minimum work experience of at least 2 years.
- An applicant should be in service in the current job for at least a period of 1-year.
- People employed in private, government, and public sector companies.
Documents Required
Mentioned below in the list of documents required to apply for a Personal Loan on Low Salary:
| Document Type | Notes |
|---|---|
| Application Form | Application form duly filled |
| Identity Proof | You can submit either one of these:Driving licenseAadhaar cardPassport copy orVoter ID |
| Residence Proof | You can submit either one of these:Copy of your passportDriving licenseAadhaar cardVoter ID |
| Bank Statements | Bank statements for the last 3 months |
| Age Proof | Age proof documents |
| Income Proof | Latest salary slips with Form 16 |
| Photographs | Recent passport-size photographs |
Quick Personal Loans for Low-Income Earners
- Banks/NBFCs having a minimum salary requirement of INR 10,000 & below
| Lender | Interest Rates | Min. Salary Required |
| KreditBee | 16.00% – 29.95% | INR 10,000 |
- Banks/NBFCs having minimum salary requirement of above INR 10,000 & up to INR 15,000
| Lenders | Interest Rates | Min. Salary Required |
| PaySense | 1.4%- 2.3% per month | INR 12,000 |
| Moneyview | 1.33% p.m. onwards | INR 13,500 |
| SBI | 11.15%-15.30% p.a. | INR 15,000 |
| Axis Bank | 10.49% p.a. onwards | INR 15,000 |
| Tata Capital | 10.99% p.a. onwards | INR 15,000 |
| CASHe | 2.25% p.m. onwards | INR 15,000 |
| Stashfin | 11.99% – 59.99% p.a. | INR 15,000 |
| Fibe (EarlySalary) | 16.00% p.a. onwards | INR 15,000 |
- Banks/NBFCs having minimum salary requirement of above INR 15,000 & up to INR 20,000
| Lenders | Interest Rates | Min. Salary Required |
| SMFG India Credit (Formerly known as Fullerton India Credit Company Limited)) | 11.99% p.a. onwards | Rs 20,000 |
- Banks/NBFCs having minimum salary requirement of above INR 20,000 & up to INR 30,000
| Lenders | Interest Rates | Min. Salary Required |
| Bajaj Finance | 11.00% p.a. onwards | INR 25,000 |
| Standard Chartered Bank | 12.00% p.a. onwards | INR 22,000 |
| HDFC Bank | 10.50% p.a. onwards | INR 25,000 |
| Kotak Mahindra Bank | 10.99% p.a. onwards | INR 25,000 |
| IndusInd Bank | 10.49% p.a. onwards | INR 25,000 |
| ICICI Bank | 10.80% p.a. onwards | INR 30,000 |
How do you apply for a Personal Loan with a low Income?
Mentioned are the steps to apply for a personal loan with a low income:
- Log in to the lender bank’s official website.
- Go to the tab “Personal Loans”.
- Click on “Check Offer”.
- Enter your 10-digit mobile number to receive OTP.
- Either go with the pre-assigned limit or choose a different loan amount.
- Choose the repayment tenure that best suits you.
- Click the tab “Apply Online” to complete the online application form.
- Fill out the basic personal and employment details.
- Upload the necessary documents for verification purposes.
- Submit the duly filled-in form.
Benefits of Personal Loan for Low-Salaried
Mentioned below are the benefits of applying for a personal loan for low-salaried applicants:
- Financial Accessibility: It ensures that even the underserved segment of this society gets quality access to funds
- Improved Credit Profile: Promptly repaying the loans improves the credit profile and makes you eligible for multiple loan offers
- Flexible Use of Funds: The loan amount can be used for multiple purposes, like medical expenses, education, travel, or home improvements, offering you the flexibility you need.
- Emergency Handling: With a personal loan at your disposal, you’re better equipped to handle any financial emergencies, providing peace of mind and financial security.
- Debt Consolidation: If you have multiple debts, you can use a personal loan to consolidate them into a single, manageable monthly payment, simplifying your financial life.
FAQ’s
- Which bank permits a personal loan for a low salary?
Many reputed banks grant personal loans in case of low salaries. Mentioned below are some of them:
- Axis Bank
- HDFC Bank
- YES Bank
- State Bank of India
- IDBI Bank
- Can anyone with a salary of ₹12000 receive a loan?
Yes. It is possible to get a personal loan with a low salary. However, different lenders have varied eligibility parameters for loans. While regular income is a must to get loan approval, other factors, like credit score, age, employment status, etc., are also considered before sanctioning a loan.
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