Personal Loans are a popular choice for those looking to borrow money to meet their financial needs. They are unsecured loans, which means that you don’t have to provide any collateral to get the loan. However, eligibility criteria for Personal Loans vary from lender to lender. If your Personal Loan salary less than 20,000, you may find it challenging to get a Personal Loan. However, there are still some lenders who offer Personal Loans to people with a low salary. In this article, we’ll take a look at the Personal Loan criteria for Personal Loan salary less than 20,000:
- Credit Score – A good credit score is essential to getting a Personal Loan, regardless of your salary. Most lenders prefer borrowers with a credit score of 700 or above. However, some lenders may consider borrowers with a lower credit score, but they may charge a higher interest rate. So, before applying for a Personal Loan, it’s a good idea to check your credit score and make sure it’s above 700.
- Age – To be eligible for a Personal Loan, you must be at least 21 years old. However, some lenders may have a higher age requirement, such as 24 or 25. So, make sure you meet the age criteria before applying for a Personal Loan.
- Income – Since your salary is less than ₹20,000, your income will be a significant factor in determining your eligibility for a Personal Loan. Lenders typically have a minimum income requirement for Personal Loans, which can vary from lender to lender. In general, most lenders require borrowers to have a monthly income of at least ₹15,000 to ₹20,000 to be eligible for a Personal Loan.
- Employment – Lenders also consider your employment status when evaluating your eligibility for a Personal Loan. If you are employed with a stable job and have been with your current employer for at least a year, it will increase your chances of getting a Personal Loan. However, if you are a freelancer, lenders may have stricter criteria and may require you to provide additional documentation to prove your income.
- Credit History – In addition to your credit score, lenders also look at your credit history when evaluating your eligibility for a Personal Loan. If you have a history of late payments or defaults on your previous loans, it can negatively impact your chances of getting a Personal Loan. So, make sure you have a good credit history before applying for a Personal Loan.
- Loan Amount – If your salary is less than ₹20,000, you may find it challenging to get a large Personal Loan. Lenders typically have a maximum loan amount that they offer based on your income and credit score. So, if your income is low, you may have to settle for a smaller loan amount.
- Documentation – To apply for a Personal Loan, you will need to provide some documentation to prove your income and identity. Some of the documents that lenders may ask for include: Salary slips for the last three months, Bank statements for the last six months, PAN card, Aadhaar card, Passport-sized photographs, and Employment Proof.
In conclusion, getting a Personal Loan for salary less than 20,000 may be challenging, but it’s not impossible. By meeting the eligibility criteria and improving your credit score, you can increase your chances of getting a Personal Loan that meets your financial needs. In addition to this, it’s essential to compare the interest rates and fees of different lenders before applying for a Personal Loan. Some lenders may offer more favourable terms for borrowers with a low salary, such as lower interest rates or longer repayment tenures. By comparing different lenders, you can find the one that offers the best terms for your situation. However, it’s important to remember that a Personal Loan is a financial responsibility, and you should only borrow what you can afford to repay comfortably without any financial burden.