How to Get a Personal Loan with a Low Salary

Understanding Income Criteria for Loan Approvals

Lenders evaluate income stability before approving a personal loan. Here’s a breakdown of general eligibility based on salary:

Lenders assess income stability before approving a personal loan. Borrowers with a monthly income between ?8,000 and ?15,000 are typically eligible for loans ranging from ?50,000 to ?2 lakh, with options available from NBFCs, fintech lenders, and

microfinance institutions. Those earning between ?15,000 and ?25,000 per month can access loan amounts between ?1 lakh and ?5 lakh, primarily from private banks and NBFCs. Applicants with a monthly income exceeding ?25,000 can qualify for loans

between ?5 lakh and ?20 lakh, offered by both public and private sector banks as well as NBFCs. Some lenders also consider household income rather than individual income, so It is advisable to check the eligibility criteria before applying.

Tip: Some lenders consider household income instead of individual income—check before applying.

Choosing the Right Lender for Low-Income Applicants

Not all lenders have the same eligibility requirements. Here’s a comparison of loan providers:

Loan eligibility requirements vary across lenders, making it crucial to compare options. Public sector banks offer lower interest rates but have stricter eligibility criteria, leading to medium approval chances. Private banks have higher approval rates and faster processing times but may charge higher interest rates. NBFCs provide the highest approval chances with flexible eligibility conditions, though they often charge higher processing fees. Microfinance institutions cater to low-income borrowers by offering small loan amounts with easy approval processes. Fintech lenders provide rapid loan disbursal through digital platforms, making them a convenient choice, though their interest rates tend to be higher. To find the best option, borrowers should use online eligibility checkers to compare lenders before submitting an application.

Tip: Compare lenders using online eligibility checkers before applying.

 Ways to Improve Your Loan Eligibility

1. Maintain a Good CIBIL Score: Aim for 750+ to get better approval chances.

2. Opt for a Longer Tenure: A longer repayment period reduces EMI burden.

3. Reduce Existing Debt: Low debt-to-income ratio (DTI) improves approval chances.

4. Show Additional Income Sources: Rental income, freelance earnings, or bonuses add credibility.

5. Choose a Secured Loan: Offering gold, FD, or property as collateral increases approval chances.

6. Apply for a Lower Loan Amount: Smaller loan requests have higher approval Rates.

Tip: Use a personal loan EMI calculator to check affordability before applying.

The Role of Co-Applicants and Guarantors in Loan Approvals

Including a co-applicant or guarantor can significantly enhance loan eligibility. A co- applicant helps increase eligibility as lenders consider the combined income, making it easier to qualify for higher loan amounts. Co-applicants can include spouses, parents, or

siblings. A guarantor reduces the lender’s risk and improves approval chances, as their creditworthiness is considered in the evaluation process. Guarantors can be friends, relatives, or even employers. A joint loan allows multiple applicants to share the loan burden, often utilized by business partners or family members. It is essential to ensure that the co-applicant or guarantor has a strong credit score, as this directly impacts the approval process and loan terms.

Tip: Ensure that your co-applicant or guarantor has a good credit score to boost approval chances.

Government Schemes and Financial Assistance Programs

Several government-backed schemes help low-income individuals secure loans:

Tip: Check eligibility on the official government portal before applying for these Schemes.

Frequently Asked Questions

Q1: Can I get a personal loan with a salary below ?15,000?

Yes, many NBFCs and fintech lenders offer loans to applicants earning ?8,000 - ?15,000 per month.

Q2: What is the minimum CIBIL score required for a personal loan?

Most lenders prefer 750+, but some approve loans with a 600-700 score at higher interest rates.

Q3: How can I improve my eligibility for a personal loan?

Improve your credit score, choose a longer tenure, and reduce existing debt before applying.

Q4: Can I get a personal loan without a salary slip?

Yes, but you must provide alternative income proof like bank statements, ITR, or business invoices.

Q5: Do government banks provide loans to low-income individuals?

Yes, public sector banks and government schemes like PMMY provide personal loans to low-income earners.

Conclusion: Smart Financial Planning for Securing a Personal Loan

Low-income applicants can still get personal loans by:

Low-income applicants can still get personal loans by choosing the right lender, such as NBFCs, fintech lenders, or microfinance institutions. Improving eligibility through a good CIBIL score, opting for a longer tenure, and maintaining low existing debt can also enhance approval chances. Additionally, using co-applicants or guarantors can strengthen the application. Exploring government-backed loan schemes is another viable option for financial support.

Tip: Always compare lenders, calculate EMIs, and check for hidden charges before applying for a personal loan!