Here’s How You Can Apply for a Personal Loan with a Low Salary? Stepwise Guide.

A personal loan is an unsecured credit option, and they have strict eligibility parameters. This ensures that just borrowers who can make the amount repayment will get them. Many fail to get a personal loan as they are unable to meet the salary parameters fixed by several lenders. However, many provide low salaries to individuals in need. In case you have a low income and face any financial exigency, then you must know about the basic parameters that lenders consider when approving your loan. Keep reading to learn about ways to get a personal loan for low salary

Income bracket & amount proceeds disbursed for distinct income levels 

Income bracket NBFC / bank  Loan proceeds Loan repayment tenure
Rs 15,000 NAVI Maximum – Rs 5 lakh 5 years
Early Salary Maximum – Rs 5 lakh 90 days to 36 months
IDBI Bank Between 25,000 and Rs 5 lakh Between 12 months and 60 months
HDB Financial Services Maximum – Rs 20 lakh Between 12 and 60 months
Rs 20,000 IDFC FIRST Bank Maximum – Rs 40 lakh Between 6 and 60 months
Fullerton India Maximum – Rs 25 lakh Between 12 and 60 months


Note that Navi personal loan may offer you a personal loan proceed of as high as Rs 20 lakh only at their sole discretion. 

Advantages of getting the low-income personal loan

Listed are the advantages of opting for a low-salary personal loan – 

Zero security or collateral – Personal loan, by nature, is an unsecured credit option. You do not require mortgaging any security, or asset to get this loan. 

Repayment tenure – You can repay the loan proceeds via loan EMIs over the repayment tenure of five years. This repayment tenure is strictly depending on the lender’s terms and conditions. 

Instant approval – The loan application procedure is smooth and uncomplex. Once the documentation is complete, your personal loan will be approved in no time. 

Quick disbursement – Once you have applied for the best banks for personal loan of your choice, your loan proceeds are processed to your savings account in just 24 hours. 

Loan proceeds – The loan proceeds for a personal loan may be as high as Rs 20 lakh based on the lender’s terms and conditions. 

Zero hidden fees – There are generally zero hidden fees as there’s less complication in regard to the documentation procedure of the unsecured loan. However, ensure to go through the documents before you sign them. 

Remember that the advantages might differ from lender to lender. 

Major eligibility criteria for a low-salary personal loan

Besides the salary requirement, eligibility criteria for low-salary loans are the same as those for personal loans. Few parameters may vary from one lender to another, but usually, the prerequisites are as follows – 

Age range – Between 21 and 60 years. 

Employment – Must be self-employed or salaried individual. An unemployed individual may obtain this personal loan by including a salaried co-applicant in the loan. 

Minimum monthly income – Nearly Rs 20,000. This figure may differ for every bank or NBFC. 

Credit score – The preferred credit score is 750. 

Work experience – You must have a minimum of work experience ranging between 1 and 2 years. It can differ with your employment status. 

What are the documents required for the low-salary personal loan?

Major documents required to place an application for the low salary personal loan may differ from one lender to another, but the most common ones include the– 

       Identity proof – Aadhaar card, PAN card, driving license. 

       Salary slips of the previous three months in the case you are a salaried individual and 6 months for a self-employed person. 

       Business details such as income tax returns and practice licenses for the self-employed. 

Passport-size photos.

Here’s how you can place an application for the low-salary personal loan

To apply for the low-salary personal loan, you may follow the below-listed steps – 

Step no. 1 – Visit the site of your selected lender. 

Step no. 2 – Log in to your bank account with the credentials asked. 

Step no. 3 – Visit the personal loan category and choose your income bracket. 

Step no. 4 – Fill up all the personal and employment details. 

Step no. 5 – Upload the asked documents and, lastly, submit. 

Can you place an application for the unsecured personal loan without the income slips?

Amongst the documents required for authentication, lenders ask for salary slips. They generally accept salary slips as income proof for unsecured loans like personal loans. However, for the self-employed person, having salary slips is not possible. In such a scenario, an alternate income proof like the latest bank statements or ITR may meet the purpose. 

Major things to factor in when applying for the low-income personal loan

Here are a few of the parameters that each borrower must factor in before choosing a low-income personal loan. 

Rate of interest 

Every financial institution levies a distinct rate of interest on personal loan products. The interest rate has an impact on the loan proceeds that you must pay. And hence, it is crucial to compare the distinct loans and distinct banks to choose a plan that will not impact your financial goals. 

Credit score

Financial institutions require every borrower to hold a minimum credit score of at least 750. Note that the higher your credit score more is your chances of securing a loan approval despite low income. Thus, to avail of the loan at a lower rate of interest, you must ensure of hold a score of more than 750. 

Keep note of EMI

Every personal loan requires you to repay the loan proceeds in the form of EMI (equated monthly instalment). All the personal loan offers with low usually specify this requirement, and hence making an informed decision on the personal loan tenure of your choice is an important step. 

Ending note

Availing of a low-salary loan is not simple, but it is possible. Banks and other crucial financial institutions have begun identifying the financial demands of those with low income. However, even while these loan offers are designed for those with low income, you must consider having an EMI as per your repayment capacity and interest rate of your preference and suitability.


Leave a Reply

Your email address will not be published. Required fields are marked *