For those who earn a high salary, obtaining a loan or credit card is simpler because of their strong payback capacity. Banks and other financial organisations easily provide credit cards or rapid cash loans to high-income people. What about individuals who have low salary? Are people with low salaries able to get a personal loan if they need money for a wedding, an education, or a medical emergency like hospitalisation? Fortunately, you can get a low salary personal loan. If a borrower satisfies the qualifying standards, which include age, credit score, the company they have worked for, their location of employment, and the number of years they have been at their current address, lenders may give low wage personal loans to them.
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Alternative To Low Salary Personal Loan
Low Salary Personal Loan Online Lenders
Below is a list which can give you a rough idea of the minimum income required by the following lenders and the interest rates applicable:
1.Banks/NBFCs having minimum salary requirement of Rs. 10,000 & below
Lender Interest Rates Min. Salary Required
Kreditbee Up to 29.95% p.a. Rs. 10,000
2. Banks/NBFCs having minimum salary requirement of above Rs. 10,000 & up to Rs. 15,000
Lenders Interest Rates Min. Salary Required
Cashe Starting from 2.25% p.m. Rs. 12,000
Money View 1.33% onwards p.m. Rs. 13,500
SBI 10.90%-15.40% p.a. Rs. 15,000
Axis Bank 10.49% p.a. onwards Rs. 15,000
Read: 10 RBI Registered Online Loan App List: Turant Loan Dene Wala App
Documents Required for Low Salary Personal Loan
The below documents are mandatory while applying for a low salary personal loan:
- KYC documents, inclusive of Aadhaar card, mobile number linked to Aadhar
- PAN card and bank account details
- Address proof on driving license/ Passport/Voter’s ID
- Account holder’s internet banking information
- Income proof such as salary slips or 6 months bank statement
- Employee details such as the name of the company, position at the workplace, work experience and job stability
In order to verify the credit score that gives information about a person’s capability to repay the loan regularly in EMIs, income proof is mandatory. This ensures that no defaulters are requesting for a loan.
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Join An Online Chit Fund Platform For All Your Financial Needs
Low Salary Personal Loan- Interest Rates
The personal loan interest rates offered by most of the online lenders ranges between 11% to 36%. The final rate offered to an applicant depends on their credit profile and other factors like:
- Monthly income
- The personal loan amount
- Fixed monthly obligation including outstanding loans
- Nature of employment
- Educational qualifications
According to the rule, the rate of interest will be lower if the credit risk is lower. Therefore, if you want to avail a low salary personal loan, you must ensure that you have a good credit score and enough income over fixed monthly obligations, so that you can avail a lower interest rate on the personal loan.
Can You Get A Personal Loan Without A Salary Slip?
While giving out a personal loan, most financial institutions prefer salary slip and surety of income earning capacity of the applicant. But, due to the varied nature of jobs and occupations, many people don’t get a salary slip. In such a situation, you have the following options.
- You can produce other financial documents like bank account statements, Form 16, income certificate, income tax returns
- You can apply with another applicant, who can provide the documents required. In such a situation, the co-applicant also needs to have a good credit report, a steady income, and salary slips or other documents to provide stable income proof.
Read: Instant Personal Loan Without Salary Slip With Loan Apps
How Much Personal Loan Can I Get On 15,000 Salary?
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Alternative to Low Salary Personal Loan
Here we can see that the rate of interest is on the higher side also there is a requirement of a good credit score. But what if you don’t have a credit score? Is there any other option?
Fortunately, Money Club comes in as a saviour in such a case. The Money Club is an online chit fund platform. It is the only financial product that allows you to save and borrow. Be smart; avoid the pitfalls of borrowing at very high costs from money lenders and other financial channels. Borrow with lesser hassles from The Money Club.
Let’s understand how The Money Club works as a low salary personal loan through Vijay’s story
Vijay works as a Sales Executive at a company in Ujjain. His monthly salary is Rs 16,000. The amount is enough for him to take care of his parents and look after the monthly expenses. He has plans to get married this year. Now, he needs to save some money for his marriage. He considered going to a bank to apply for a personal loan, but quickly realised that not only was the process of getting a loan approved a herculean task, but the interest rate was quite high as well.
So, on the advice of one of his friends he decides to join a chit scheme with Money Club. He saves a small amount every month and when he wants a lumpsum amount he can bid for it. In this way he is free from the stress of high interest loans.
Read: Know Your Money Club platform Journey On The Money Club App
How Does The Money Club Mobile App Work? – The Money Club
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FAQs on Low Salary Personal Loan
You are eligible for a personal loan even if the salary is received in cash or by a cheque. You need to attach your bank account statement for the last three months.
You can get a personal loan from online lenders or loan apps without a salary (or pay) slip. Such lenders evaluate your bank account statement in order to check your eligibility.
Frankly speaking, applying for a personal loan based only on your first month’s salary is a little difficult. However, if you have a high credit score and a credible history, some lenders may provide you a loan.
How Much Personal Loan Can I Get On 15,000 Salary?
Conclusion
The chances of getting a low salary personal loan with low income and no salary slip are low. Some lenders may be willing to provide a loan depending on how other criteria match, but they would probably also charge you a very high-interest rate.
Therefore, in my opinion, chit fund is better option. When you invest in chit funds you have the dual benefit of saving and borrowing in times of need.
