Personal loans come to your rescue when you fall short of money to accomplish some of your personal desires such as planning your daughter’s wedding well, sending off your parents on an international trip or simply wanting to own a car for yourself.
Personal loans come easy to people with good Credit Score and high income, but what if your income is low? Today, we will try to decode how you can still get a personal loan with a low salary and things to consider while applying for one.
The Minimum Income Bar
Like mentioned earlier, personal loan for a high salaried individual comes easy, as all they are asked of are few necessary documents. However, having said that there is a basic salary limit as well for a bank or non-banking finance companies (NBFCs) to consider you for a personal loan. Here’s how to get personal loan with low interest rate. The minimum income requirement typically ranges between Rs.15,000 to Rs. 25000 per month.
Thus, if you fall in in that income bracket, you can request a lender to consider you for a personal loan. You can also convince that you will pay timely EMIs as you have a consistent income.
Hence, it is vital, though small to have a definite source of income for the bank or lending institution to consider you for a personal loan.
Let us try and understand some other pointers that you should take into consideration while applying for a personal loan with low-income bracket.
Look out for Lower Interest Rates
Loan and interest rates go hand in hand. However, it is important for one to very carefully look for the right deal. Personal loans, in general, do come with a high rate of interest. Having said that it is important to look for deals and try to negotiate for a number that is a win-win situation for both the lender and the borrower.
Loan Fees and other Costs Involved
When applying for a loan along with the interest implied on it, there are some additional charges that the bank or the lending institution levies. Always enquire and be aware of the persona loan charges that could be applied on your loan. Some of the charges levied could be in the form of stamp duty procedure, guarantee / indemnity agreement. Banks also charge a penalty for not paying your instalments on time.
Consider Longer Tenures
Ideally, one would want to do away repaying the loan at the earliest. However, with the low income in hand, one must consider planning a personal loan for a longer tenure. This is because it will give you time to pay back the loan without defaulting.
You may Need a Guarantor or Security
While granting a personal loan for low-income earners, the bank might insist on a guarantor or some form of security. A guarantor acts as an assurance to the bank on the repayment of the loan.
The Bottom Line
Now that you are aware of the things to consider while applying for a personal loan with your low income, it’s time to apply for one. You can check for bajaj finance processing fee Leading online lenders brings you pre-approved offers for personal loans, home loan, business loans, and a host of other financial products.
Not only does this simplify the process of availing your loan, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved loan offer.