How to Get a Personal Loan if You Earn Less than Rs. 20,000 per Month?by Arwind Sharma Finance Advisor
Many financial institutions are providing personal loans in India. Lenders now have customized loans for doctors, engineers, chartered accountants, women, and others. They also have loans for those who have income as low as Rs. 20,000.
A low salary personal loan, offered by several financial institutions, is a much-needed and in-demand financing option for individuals with a salary of less than Rs. 20,000. Although the amount sanctioned will be low, they can certainly provide you with essential funding during emergency monetary crises.
If you are looking for such a loan, here are a few things you need to keep in mind:
1) A high credit score
Personal loans are unsecured, and thus, customers need to hold a credit score of 750 or above. If you have such a rating, the lender will consider you as creditworthy to repay the loan. A good credit/CIBIL score will make you more eligible for a low salary loan. You may even get to negotiate your interest rates if you have a more positive rating.
Avoid applying for multiple loans as it can lower your credit score. Also, make sure that you have a clean credit history. You may also get attractive offers with a high credit score and a clean credit history.
2) Reduce your monthly obligations
Your Fixed Obligations to Income Ratio (FOIR) must be 50% or below. Having such FOIR gives you more cash in hand to repay your loan EMIs in time. Lenders calculate your FOIR before disbursing the loan; so, you have to make sure it is acceptable.
3) Apply for a reasonable amount
Applying for a fair amount helps you move forward with your personal loan application process. A lender might reject your high loan amount application considering that you have a higher chance of defaulting on the repayment.
4) Provide all the necessary documents
Documents are crucial for getting any loan approved. Ensure you provide all the ones mentioned below:
- KYC – Aadhaar, PAN, Passport, Voter ID, Driving License, etc.
- Address proof – Any KYC document with your permanent address, house rent agreement, latest utility bill, etc.
- Proof of business (for self-employed individuals) – Any certificate or registration that vouchers for your business. For example, trade license, GST registration, etc.
- Salary slips (for salaried) for at least the previous 3 months.
- Business turnovers of the previous year audited by a CA (for salaried individuals).
- Income tax returns (if any) for the previous year.
- Bank account statements.
Fulfill all the eligibility criteria
The personal loan eligibility criteria also hold considerable ground as the documents.
Some criterions that you need to satisfy include:
If you are a salaried individual –
- You need to be between 23 and 58 years of age.
- You must be employed with a public/private company or an MNC.
- If you are a self-employed individual –
- You must be between 22 and 55 years of age.
- Your business must have a vintage of at least 3 years.
You can use an online personal loan eligibility calculator to know the loan amount you are eligible for depending on your income, monthly debts, existing loans, etc.
Go ahead with the personal loan online and apply for the procedure today. Make the best of low salary personal loans from leading financial institutions for better financial management.
Created on Nov 19th 2018 01:53. Viewed 469 times.
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