A personal loan is an unsecured loan usually taken to meet short term needs. It is a multi-purpose loan that can be used for family vacation, wedding or medical emergency. A Personal Loan is availed by individuals on the basis of specific criteria, like their income, employment history, credit score, and repayment capacity. With the help of leading banks and other financial institutions, it is possible to avail a personal loan online. Borrowers can also track their transactions, interest rates, and other details online in a hassle-free manner. In addition that that, online tools like Personal Loan EMI Calculator can help the borrowers to assess the EMI installments throughout their loan tenure.
Personal Loan for Low Salary:
Your salary is a major deciding factor for the approval of a personal loan. However, it is not mandatory to have a huge monthly salary to qualify for a personal loan. There are quite a few banks and other financial institutions in India that offer personal loan to people with low salary. For the low-income group, personal loan depends on the monthly net salary. As long as the borrowers are able to meet the eligibility criteria and minimum income requirement of the financial institution, they can apply for a personal loan. Therefore, borrowers with low income should look for lenders who offer a personal loan in their income band.
When you apply for a personal loan, some financial institutions also take your place of residence into consideration. Therefore, for borrowers residing in semi-urban or rural areas, it is possible to avail a personal loan with low salary. However, for approval of the personal loan, lenders will have to be convinced that you have alternate sources of income to repay the loan amount with ease.
Below is a list of documents required to avail low salary personal loan
Passport sized photographs
Bank statement of previous 3 months
Latest salary slip/ current date salary certificate along with form 16.
Since a low monthly salary might hamper your repayment capacity, it is possible that financial institutions might charge you high-interest rates on your personal loan. In order to counterbalance this, you should consider improving your credit score. High credit score and a clear debt history will not only allow you to avail a personal loan at the most competitive interest rate but also increase the chances of your loan approval. You can enhance your credit score by making timely repayments, keeping debts at bay and by improving your spending habits.
Lastly, while applying for a personal loan, it is recommended that you should compare various deals offered to you by different financial institutions. This will allow you to settle for a personal loan that best suits your needs. Do not forget to read the terms and conditions of the loan agreement carefully before opting for it.
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