How To Get An Instant Personal Loan With A Salary Of Less Than ₹20,000 In India?

instant personal loan


Personal Loans are financial aids many NBFCs extend to help people meet their big-ticket expenses or any financial emergencies. These are collateral-free loans that most lenders approve based on the applicant’s income, financial obligations, and repayment capacity. However, checking their eligibility conditions before submitting the application form, including age, citizenship, employment, work experience, and minimum salary for a Personal Loan is crucial. Individuals with a monthly salary of ₹20,000 can quickly get an instant loan online with minimal documentation.

Instant Personal Loans can help individuals meet various planned or unexpected financial needs. They are unsecured loans, so the applicants must have a good credit rating and convince the lenders of their repayment capacity. Here, lenders give considerable weight to the applicant’s income. Read on to learn how to get an instant Personal Loan with a salary of less than Rs. 20,000 in India.

Importance of Salary in Getting a Loan

When applying for a Personal Loan, the applicant’s monthly income is a crucial factor that decides their repayment capacity. The minimal salary requirement varies from one lender to the other, so it is essential to check the lender’s eligibility criteria before applying. 

The applicant must have a regular source of income to get a loan from an NBFC. Employees working in a public or private limited company or LLP are eligible for Personal Loans. Self-employed professionals, Chartered Accountants, company secretaries, and doctors may apply. However, their monthly income is vital in determining their loan eligibility. Many lenders use their income as a parameter to determine the loan amount and interest rates. Individuals with low salaries are high-risk borrowers who may have a more challenging time getting loan approval from most lenders.

How Does Income Affect Loan Eligibility?

Most lenders set their loan limits based on the applicant’s income. They significantly rely on an individual’s income to measure their repayment potential. A borrower may use a loan to pay debts, cover urgent medical expenses, manage last-minute wedding expenses, plan a holiday, pursue higher studies, etc. However, suppose their income does not meet the lender’s minimum salary for Personal Loan requirements. In that case, the lender may reject their loan application immediately or charge them higher interest rates than usual. 

Those with a high income and good credit score can quickly get the loan amount they desire. Besides that, they gain negotiating power to get the best interest rates with favourable terms and conditions. Apart from income, lenders want to see what an applicant is left with after covering all their financial obligations. So, they deduct their financial obligations from their net monthly income to calculate their debt-to-income ratio. The DTI ratio should not be more than 50% for getting a loan.

How to Improve Loan Eligibility on ₹20,000 Salary?

Although a salary of ₹20,000 is good enough to get a loan; here are a few tips that can improve loan eligibility:

  • Find a Lender with a Low Minimum Salary for Personal Loan Requirement

Those with a monthly salary of ₹20,000 must compare lenders and find one with a low minimum salary requirement. Easily qualifying for their loan allows individuals to borrow the loan amount they want without special arrangements.

  • Apply for a Lower Loan Amount

Lenders may agree to lend a smaller loan to individuals with low salaries. Since a small loan amount will have a lower EMI and be easier to repay, the lender may agree to take the risk up to a certain level.

  • Opt for a Longer Loan Tenure

Most NBFCs are flexible with their loan repayment terms. Opting for a longer loan tenure reduces the EMI amount, after which it might become easily adjustable into their monthly budget. While the EMIs become easily manageable for the borrower, the lender may also agree to take the risk.

  • Increase Income Sources

Those with a salary of ₹20,000 may consider increasing their income sources, such as taking a part-time job, selling the products as a hobby, renting a property, investing in the right places, etc. Increased income will boost an individual’s loan eligibility significantly.

  • Maintain a High Credit Score

Individuals with low salaries may qualify for a higher loan if they maintain a high credit rating. A credit score of 750 or above makes a loan possible at ₹20,000 salary.A prospective borrower may have a more challenging time getting a Personal Loan on a low salary. Still, many lenders pay more attention to their DTI ratio, credit rating, and other factors. Therefore, before applying, the applicant must check the lender’s eligibility criteria and improve conditions to get the loan they need.

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