Are you a low-income earner who is looking to get a personal loan? Getting approved for a loan can be difficult if your income is below a certain level. But don’t worry! There are still ways to secure a personal loan for low salary earners. In this blog post, we’ll discuss the best strategies for getting a personal loan for low income earners and how to maximize your chances of approval. So if you’re looking to get a personal loan despite your low salary, read on to learn more.
What is a Personal Loan?
In India, a personal loan is an unsecured loan that is provided by banks and non-banking financial companies (NBFCs) to individuals. It can be used for a variety of purposes, such as funding a wedding, paying for a vacation, or consolidating debt.
Some benefits of personal loans in India include:
Quick disbursal: Personal loans can be disbursed quickly, often within a few hours of the loan application being approved.
No collateral required: Personal loans are unsecured, which means that you do not have to pledge any collateral to get a loan.
Flexible repayment: Personal loans have flexible repayment options, allowing you to choose a repayment period that suits your financial needs.
Easy to apply: Personal loans can be easily applied for online, and the application process is often simple and straightforward.
To be eligible for a personal loan in India, you typically need to meet the following requirements:
Age: You must be at least 21 years old.
Employment: You must be employed, Either Salaried or self-employed.
Credit score: You must have a good credit score, typically 750 or above.
Income: You must have a stable income and meet the lender’s income requirements.
Documents required to apply for a personal loan in India include:
Identity proof: PAN card, Aadhar Card, passport, voter ID, or driving license
Address proof: Utility bill, passport, voter ID, or driving license
Income proof: Salary slips, bank statements, or ITR (Income Tax Returns)
Employment proof: Appointment letter or salary slips
Photos: Passport size photographs
Note that the specific documents required may vary from lender to lender, so it’s a good idea to check with the lender before applying for a loan.
How can you get a personal loan if you have a low income?
If you have a low salary, it may be more challenging to get approved for a personal loan. However, there are still some options available to you:
- Consider Instant Loans Apps: It’s a good idea to look for Instant Loan Apps and their loan terms to apply for a personal loan for low salary earners.
- Consider a secured loan: If you have collateral, such as a car or a house, you may be able to get a secured loan at a lower interest rate. This is because the lender can seize the collateral if you default on the loan.
- Apply with a co-borrower: If you have a family member or friend with a higher income who is willing to co-sign on your loan, you may have a better chance of getting approved. Keep in mind that the co-borrower will be responsible for paying back the loan if you are unable to.
- Consider alternative lending options: If you are unable to get a traditional personal loan, you may be able to get a loan from a peer-to-peer (P2P) lending platform like Faircent. These alternative lenders may be more flexible when it comes to income requirements.
- Improve your credit score: If you have a low credit score, you may be able to improve it by paying your bills on time, reducing your credit card balances, and disputing any errors on your credit report. A higher credit score can make it more likely that you will be approved for a personal loan.
Best Instant Loan Apps for Low Income Earners
There are several instant loan apps available in India that cater to low-income earners. Here are some options to consider:
KreditBee: KreditBee is an instant loan app that offers personal loans of up to INR 1 lakh to low-income earners. The loan can be repaid in monthly installments over a period of 3 to 12 months. This app is a good option for low-income earners who need a short-term loan to cover unexpected expenses.
Cashe: Cashe is another popular option for low salary personal loans. Cashe is an instant loan app that offers personal loans of up to INR 4 lakh to salaried individuals. The loan can be repaid in monthly installments over a period of 3 to 18 months.
Fibe: Fibe (Earlysalary) is an instant loan app that offers personal loans of up to INR 5 lakhs to salaried individuals. The loan can be repaid in monthly installments over a period of 6 to 60 months.
Moneytap: Moneytap is an instant loan app that offers personal loans of up to INR 5 lakhs to salaried individuals. The loan can be repaid in monthly installments over a period of 3 to 36 months.
Nira: Nira is an instant loan app that offers personal loans of up to INR 1 lakh to salaried individuals. The loan can be repaid in monthly installments over a period of 3 to 12 months. This app is a also good option for the one looking for a personal loan for low salary.
PaySense: PaySense is an online lender that offers personal loans of up to 5 lakhs. The application process is simple and the loan can be approved in as little as 15 minutes.
IIFL: IIFL (India Infoline Finance Limited) is a non-banking financial company that offers personal loans through its app. It offers loans of up to INR 5 lakhs for a period of up to 3.5 years.
MoneyView: MoneyView is an instant loan app that offers personal loans of up to INR 5 lakhs for a period of up to 5 years. It is targeted at salaried individuals who need a longer repayment period.
All of these apps offer instant personal loans for low salary and incomes. So if you need a quick and easy way to access funds, these apps are worth considering.
Comparison of Banks/NBFCs/fintech in terms for minimum salary required
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In conclusion, personal loans can be a useful financial tool for individuals who need access to quick cash. Several online platforms, such as Kreditbee, Cashe, Fibe, Nira, Moneytap, PaySense, IIFL, and Moneyview, offer personal loan for low salary earners. Instant loan apps can be a convenient option for low-income earners who need a short-term or long-term loan to cover unexpected expenses or temporary financial needs. However, it’s important to carefully consider your options and only borrow what you can realistically afford to pay back.
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