Income is one of the major factors that come into play for approval of a personal loan. It often becomes particularly difficult to obtain a personal loan for a low salary. It is advisable to understand personal loan eligibility criteria if one is looking for a personal loan with low salary. The following are some of the important things that need to be kept in mind while looking for a personal loan.
Personal Loan Eligibility
For people who are looking for a personal loan with low salary, meeting the lender’s basic requirements is very important. The following are some of the basic or desired requirements for a personal loan particularly for people with a low income:
- Employment in government or private companies
- The age of the individual should be between 21 to 60 years
- Work experience should be at least 2 years
- The individual must have worked at their current workplace for at least a year
Documentation for Personal Loan
The following is a list of documents that need to be produced in order to get a personal loan with low salary:
- Identity proof: Aadhar card, passport, voter ID, or driving license
- Filled application form
- Bank statements for the previous three months
- Form 16 and recent salary slips
- Age proof
- Passport sized photos
- Verification of signature
Things to remember while looking for a personal loan with low salary
There are certain things that need to be considered while looking for a personal loan, and especially if the salary of the individual is low.
- Personal loan eligibility: Personal loan eligibility requirements vary from one bank or company to another. These requirements should be checked before applying for any personal loan to avoid complications.
- Interest Rate: Before deciding on a particular personal loan, it is recommended to compare the interest rates offered by different lenders.
- EMI: A personal loan EMI calculator should be used in order to be sure of the total costs involved in any personal loan. Additional charges are often a part of the deal.
- Credit Score: The borrower’s credit score needs to be checked before applying for any personal loan. A good credit history also improves personal loan eligibility.
FAQs for personal loan with low salary
- How does salary affect personal loan eligibility?
A higher salary could mean a higher loan amount. A personal loan EMI calculator can be used to calculate the amount that can be availed with a low salary.
- What could be the added charges?
Additional charges may range from penal interest, stamp charges, processing or documentation charges, etc.
- What happens if EMI is not paid on time?
Credit score is affected badly in such cases. There might also be penalties. Therefore, using a personal loan EMI calculator and ascertaining the financial obligations beforehand is important.
It is possible for persons with low income to get a personal loan, if they are well-informed and opt for the right loan.