Personal Loan for Low Salary
In times of financial need, having access to credit plays an important role, whether it’s handling a medical emergency, funding education, or covering everyday expenses. However, individuals from low salary groups often face challenges in securing personal loans due to their limited repayment capacity. A personal loan for low-income earners is specifically designed to bridge this gap, offering financial assistance to those who may not meet the standard income requirements of traditional loan products.
These loans come with flexible eligibility criteria, minimal documentation, and smaller loan amounts tailored to suit the borrower’s financial needs. Read on to know more about the personal loan for low salary groups, their eligibility criteria, documents required and other related details.
Best Personal Loans for Individuals with Low Salaries
Bank | Interest Rate | Minimum Monthly Income | Loan Tenure |
10.40% p.a. to 21.80% p.a. | Rs.15,000 | 12 to 60 months | |
10.30% p.a. | Rs.15,000 | Up to 72 months | |
10.90% p.a. to 24% p.a. | Rs.25,000 | 12 to 60 months | |
Up to 36% p.a. | Rs. 1 lakh a year for metro cities Rs.75,000 a year for non-metro cities | 12 to 60 months | |
11.00% p.a. to 15.50% p.a. | Rs.30,000 | 12 to 72 months |
Axis Bank Personal Loan
Axis Bank offers a personal loan to individuals who earn a minimum monthly salary of Rs.15,000. Do note that you have to be at least 21 years of age to borrow a loan from Axis Bank.
Listed below are some of the key features of Axis Bank personal loan.
Highlights:
- Salaried employees who work in public sector, private sector, and government companies can apply for a personal loan from Axis Bank.
- Minimal documentation is required to apply for this loan.
- The lender offers speedy approval of loans.
- Balance transfer facility is offered.
Bank | Processing Fee | EMI per Lakh | Pre-Closure Charges |
Axis Bank | Up to 2% of the loan amount + GST | Rs.8,810 | Nil |
SBI Xpress Credit Personal Loan
State Bank of India offers a personal loan solution called the Xpress Credit Personal Loan that allows individual with incomes of Rs.15,000 and above to avail funds. Prospective borrowers can borrow up to Rs.20 lakh under this scheme.
Highlights:
- To avail a loan from SBI under this scheme, the applicant should have been maintaining a salary account with the lender.
- To be eligible to borrow this loan, your EMI to net monthly income ratio should not be more than 50%.
- Borrowers can avail a second loan one year after the disbursement of the first loan.
Bank | Processing Fee | EMI per Lakh | Pre-Closure Charges |
State Bank of India | 1% of the loan amount | Rs.8,806 | 3% on the prepaid amount |
HDFC Bank Personal Loan
If you require funds to meet any emergency needs, avail yourself of a personal loan from HDFC Bank. Applicants are required to have a net monthly income of Rs.25,000 to be eligible to apply for this loan.
Highlights:
- Eligible applicants can borrow a personal loan from HDFC Bank at an attractive interest rate.
- Personal loan borrowers can also opt for the Personal Accident Cover and Critical Illness Cover for a nominal premium.
- You can also secure your loan with the Sarv Suraksha Pro cover.
- Balance transfer facility is offered to prospective borrowers.
- Applicants should be between 21 years and 60 years of age and have a total work experience of a minimum of 2 years, with at least 1 year in present company..
- The applicant should earn a minimum income of Rs.25,000 in a month.
Bank | Processing Fee | EMI per Lakh | Pre-Closure Charges |
HDFC Bank | Up to Rs.6,500/- + GST | Rs.8,834 | 2% - 4% of Outstanding Principal |
Note: Know more about HDFC Bank Personal Loan
HDB Financial Services
HDB Financial Services offers personal loans of up to Rs.20 lakh to individuals who reside in non-metro cities and earn a minimum income of Rs.15,000. Rs.75,000 in a year. Those who reside in metro cities like Ahmedabad, Chennai, Bengaluru, Kolkata, Delhi, Pune, Mumbai, and Hyderabad are required to earn at least Rs.1 lakh in a year.
Highlights:
- No guarantor or security is required to avail a personal loan from HDB Financial Services.
- The lender offers doorstep service.
- Loans are processed quickly.
- The lender offers a hassle-free documentation process.
- Special offers are provided to employees of select organisations.
Bank | Processing Fee | EMI per Lakh | Pre-Closure Charges |
HDB Financial Services | At the discretion of the bank | Rs.10,046* | At the discretion of the bank |
*Interest rate charged at 36%
IDBI Bank Personal Loan
IDBI Bank offers personal loans to salaried individuals earning at least Rs.30,000 per month or Rs.3,60,000 annually. The loan amount depends on your income and repayment capacity. You can borrow a loan ranging between Rs.50,000 up to Rs.15,00,000 for salaried individuals for a tenure ranging between 12 months up to 72 months.
Highlights:
- Salaried individuals who hold a corporate salary account with IDBI Bank can apply for this loan.
- Applicants need to be over the age of 21 years to avail themselves of a personal loan from IDBI Bank.
- All borrowers are covered under the complimentary personal accident insurance cover.
Bank | Processing Fee | EMI per Lakh | Pre-Payment Charges |
IDBI | 1% of the loan amount (minimum Rs.2,500) | Rs.8,838 | 0 - 3% of the outstanding amount |
Note: Know about IDBI Bank Personal Loan
Eligibility Criteria
- Individuals who are employed in private companies, government companies, public sector firms can apply for a loan.
- The individual applying for the loan should be between the ages of 21 years and 60 years.
- The applicant should have work experience of at least 2 years.
- The applicant should have served their current employer for at least 1 year.
Note: The lending organisation may have additional eligibility criteria which you will have to fulfill to get a personal loan.
Documents Required to Apply for a Personal Loan
- Duly-filled application form
- Identity proof: You can submit your passport copy, driving licence, Aadhaar card, or voter ID as proof of identity
- Proof of residence: You can submit a copy of your passport, Aadhaar card, driving licence, or voter ID card as proof of residence
- Bank statements of the last three months
- Latest salary slips with Form 16
- Proof of age
- Recent passport-size photographs
- Signature verification proof
Note: The lending organisation may require additional documents, which you will have to provide to get a personal loan.
Things to Consider when Borrowing a Personal Loan with a Low Salary
- Eligibility Criteria: If you have a relatively low income, it’s especially important to check and compare the eligibility criteria of different lenders before applying for a personal loan. Doing so will reduce the chances of your application getting rejected.
- Interest Rate: A higher interest rate increases the overall cost of your loan. To save money, compare rates from different lenders through their official websites or trusted financial portals before applying.
- Assess the Other Charges: When calculating the total cost of the loan, it is necessary to also take the other charges that are levied by the lender into account.
- Check the Payable EMI: Once you borrow personal loan from a lender, you will need to pay the specified EMIs on a monthly basis to the lender. Missing even one EMI payment could affect your credit score and make it difficult for you to apply for a loan in the future. Thus, it is vital that you check the payable EMI using an EMI calculator.
- Check Your Credit Score: Before you apply for a personal loan, ensure that you check your credit score. If you want to borrow a loan at a low rate of interest, it is advisable to maintain a credit score over 700.
FAQs on Personal Loan for Low Salary
- What are the various charges that I can expect to pay when I borrow a personal loan?
Apart from the interest rate, personal loan borrowers may need to pay the processing fee, documentation charges, penal interest, swap charges, duplication statement issuance charges, stamp duty charges, part-payment charge, foreclosure/pre-closure charge, etc.
- What will happen if I do not repay my EMIs as per schedule?
If you default on your personal loan EMI payments, your credit score will be affected. You may also have to face legal action by the bank. If you had a co-signer or guarantor, it is likely that their credit score will be affected, as well.
- How long do I have to wait for my personal loan application to be approved?
Most lenders process personal loan applications within 72 hours of the documents being submitted.
- Will my income affect my personal loan eligibility?
Yes. Individuals who earn a higher income will be able to borrow a higher loan amount, and vice versa. It is advisable to use a personal loan eligibility calculator to know how much you are eligible to borrow.
- Can I borrow a personal loan even if I don't reside in a metropolitan city?
Yes, you can borrow loans even if you don't reside in a metropolitan city, unless otherwise specified by the lender. Lenders usually set a lower income requirement for those who reside in semi-urban and rural parts of the country.
Annie Jangam is a financial writer with a unique background in biotechnology and eight years of genomics research experience, culminating in 6 international publications. She combines her analytical and communication skills to simplify complex financial concepts, delivering precise and creatively engaging content in the fintech industry. She covers various financial products such as banking, insurance, credit cards, tax, commodities, and more. Outside of the financial realm, she dabbles in poetry. Her extracurricular passions include organizing events like One Billion Rising and Human Rights Day. She is committed to the equality of all people, a principle rooted in her Christian faith. Annie strives to embody the values of faith, hope, and love in both her work and her life.
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