Mumbai: For millions of Indians earning modest salaries, accessing personal loans can seem like a distant dream. However, banks and non-banking financial companies (NBFCs) are increasingly offering solutions for low-income earners, provided they meet specific criteria. Typically, lenders require a minimum monthly income of Rs 15,000 to Rs 25,000 for personal loans, alongside a CIBIL score of 750 or above. But what if your salary falls short?
Financial experts highlight several strategies to bridge the gap. First, consider NBFCs, which often have relaxed eligibility compared to banks, though interest rates may hover between 12% and 24%.
Adding a co-applicant with a stable income or providing collateral, like fixed deposits, can boost approval chances. Maintaining a clean credit history is crucial, as defaults can derail applications. For salaried individuals, showcasing job stability — preferably six months with the current employer — adds credibility.
Digital lending platforms are also game-changers, offering quick loans to low-income groups with minimal paperwork. Some banks provide pre-approved loans to existing customers, even with salaries as low as Rs 10,000, based on account history.
Experts advise comparing loan terms, as processing fees and tenures (1-5 years) vary widely.
While loans can ease financial strain, borrowers must avoid over-leveraging. “Plan repayments carefully to protect your credit score,” says financial advisor Priya Sharma. With smart planning, even low earners can unlock funds for emergencies or aspirations.