How To Get A Personal Loan If You Have Low Salary / Income?

Find out how to get a personal loan with a low salary or income. Learn about loan options, requirements, and tips to increase your chances of approval at IIFL Finance.

2 Feb,2023 09:53 IST 2481 Views
How To Get A Personal Loan If You Have Low Salary / Income?

A personal loan is an unsecured loan which can be availed to settle any personal financial obligation. Hence, financial institutions prefer lending to individuals with sufficient income, as they are less likely to default and pay EMIs timely.

Any individual can seek a personal loan from a bank or an NBFC if they need funds for education, wedding, medical emergencies, home renovation or any other personal expense. To get a personal loan, borrowers need to meet lenders’ eligibility criteria that include salary, credit score, occupation, repayment capacity, age etc.

But can people with low income or salary get personal loans? They can, but since low-income people are categorized as high-risk borrowers, they are charged a higher rate of interest.

Eligibility Criteria For Personal Loan

Compared to other types of loan, personal loans are easily available and approved in the shortest possible time, only if minimum eligibility criteria are fulfilled. Most banks stipulate a minimum monthly salary of Rs 15,000 – Rs 20,000 for individuals to get a personal loan. So, before applying for a personal loan, it is recommended to check the minimum income requirement of the lender. Lenders consider factors like:

• Occupation :

Any occupation with a steady income. Government and public servants, doctors, etc. are preferred.

• Age :

Borrower should be between 21 and 65 years.

• Work Stability :

Minimum two years of work experience.

• Credit Score :

The borrower should have a good credit score. Any credit score of 750 and above is considered good while some lenders may consider a credit score of 700 for approving the loan.

• Repayment Capacity :

The total credit card dues and existing loan EMI obligations, including that of the proposed loan, should not exceed 50% of their total income.

Things To Consider When Taking Out A Personal Loan With A Low Salary

Eligibility Criteria -

It is important to check and compare the eligibility criteria in terms of minimum salary required by different lenders. This will reduce the chances of application being rejected.
Zaroorat aapki. Personal Loan Humara
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Interest Rate -

The interest rate affects the loan. It will affect the EMIs to be paid as well as the tenure of the loan. Check the interest rates that will be applied on the loan by various lenders before applying to a particular lender.

Repayment Terms -

Check and compare the loan repayment terms with various lenders.

Payable EMI -

Calculate the EMI that will be needed to be paid once the loan has been assigned. Also, check for its mode of payments. The amount of EMIs should be in the paying capacity of the borrower. Non-payment or delayed payment of EMIs will affect the credit score of the borrower. This will impact on future borrowings of loans.

Other Charges -

Personal loan borrowers may need to pay the processing fee, documentation charges, penal interest, swap charges, duplication statement issuance charges, stamp-duty charges, part-payment charges, foreclosure/pre-closure charge etc. All these charges are additional to the interest rate or EMIs charged on the loan.

Credit Score -

Always try to maintain a good credit score. A good credit score enables lenders to provide a loan at low rate of interest.

So, a higher income improves the chances of a lender approving a higher amount for the loan. It is advisable to use personal loan eligibility calculator to check the amount that can be approved as per the current salary.


A monthly income of less than Rs 15,000 per month makes it difficult to get a loan, but not impossible. There are various NBFCs and financial institutions like small banks that provide personal loans to this segment.

A person with a low salary should check the eligibility criteria of the lenders before applying for the loan. If an application is rejected, the person can bring on board a co-applicant or guarantor to meet the lenders’ eligibility criteria. They can also provide a collateral, if possible, to take out a personal loan.

Lenders, generally, approve the loans to high-risk borrowers at a high rate of interest. Also, it is important for people in the segment to have a good credit score.

At IIFL Finance, personal loans up to Rs 5 lakh can be availed at competitive rates of interest for a tenure ranging from three months to 42 months. Since, personal loans create a financial obligation on the borrower for its repayment within the loan tenure, it is important to have more than one means to pay the EMIs. IIFL Finance offers borrowers flexible repayment options and multiple modes to pay the EMI including through its app and payment wallets.

Zaroorat aapki. Personal Loan Humara
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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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