🏦 Introduction: Is It Really Possible?
Yes, you can get a personal loan even if your salary is low. The truth is—many banks and NBFCs do offer loans to low-income earners, but the process isn’t as straightforward. It involves a bit of strategy, planning, and smart decision-making. Whether you earn ₹10,000 or ₹25,000 per month, this guide will help you boost your chances of loan approval and avoid common pitfalls.
Let’s break it down step by step with practical advice, real-life scenarios, and expert tips.
✅ 1. Understand What Personal Loan Lenders Look For
Contrary to popular belief, salary isn’t the only factor. Banks consider several criteria before approving your loan:
📋 Main Factors:
- Your credit score
- Job stability
- Debt-to-income ratio
- Existing liabilities
- Employer reputation
- Your repayment history (if any)
Example: Rajesh works at a private firm and earns ₹18,000/month. Though his income is modest, his credit score is 770 and he has no previous loans. When he applied for a loan of ₹50,000, it was approved instantly because he had no defaults and good financial discipline.
✅ 2. Start Small and Aim Low
If your income is low, don’t go overboard asking for ₹5 lakhs. Start small.
💡 Pro Tip:
Apply for a smaller loan amount (₹30,000 to ₹1,00,000) with a longer repayment tenure. This keeps your EMI affordable and makes it easier for the bank to approve.
Tip: Use a Personal Loan EMI Calculator before applying.
Example: Priya wanted a ₹1.5 lakh loan but earns ₹15,000/month. The EMI was too high for her budget. She instead took a ₹75,000 loan over 24 months—approved easily with an EMI of ~₹3,500.
✅ 3. Add a Co-Applicant or Guarantor
This is one of the most effective hacks.
If your income is low, add someone with:
- Higher income
- Better credit score
- Stable job or business
The co-applicant’s financial health improves your loan eligibility significantly.
Example: Sunil, a junior technician earning ₹13,000/month, applied for a personal loan with his elder brother (who works in IT) as a co-applicant. The application got instant approval.
✅ 4. Keep Your Credit Score Above 700
Banks trust your score more than your salary.
How to Boost It:
- Always pay EMIs and bills on time
- Keep credit card usage below 30%
- Don’t take too many loans at once
Pro Tip: Even if your salary is low, a credit score of 750+ can help you negotiate better interest rates.
Example: Anita, a receptionist earning ₹12,000/month, had a CIBIL score of 785. She got a ₹40,000 loan at just 12% interest from a small NBFC.
✅ 5. Maintain a Low Debt-to-Income Ratio
This ratio compares your monthly debt (EMIs) with your monthly income. Ideally, this should be under 40%.
Example Calculation:
- Salary: ₹20,000
- Existing EMI: ₹4,000
- New EMI: ₹3,000
- Total: ₹7,000 → 35% (✅ Acceptable)
If it goes above 50%, your loan may be rejected.
✅ 6. Choose a Lender That Caters to Low-Income Borrowers
Not all lenders have the same rules. Some NBFCs and digital lenders are more flexible.
Top Options:
- Bajaj Finserv
- MoneyTap
- EarlySalary
- Paysense
- KreditBee
- CASHe
These platforms often have less paperwork and faster approvals for low-income borrowers.
✅ 7. Show Stable Income and Job Continuity
A low salary doesn’t hurt much if your job is stable and you’ve been working in the same place for over 1–2 years.
Documents That Help:
- Salary slips
- Bank statements
- Appointment letter
- Form 16 or ITR (if applicable)
✅ 8. Build Loan History with Small Borrowings
If you’ve never taken a loan before, lenders don’t know how reliable you are. In such cases:
- Take a small consumer durable loan (TV, fridge, phone)
- Repay on time
- Then apply for a bigger loan
Example: Aakash bought a smartphone with a ₹6,000 loan on EMI. He repaid it in 6 months and improved his credit record. Later, he got a ₹75,000 personal loan easily.
✅ 9. Compare Offers from Different Lenders
Don’t just go to your nearest bank. Use online platforms to:
- Compare interest rates
- Check processing fees
- Read reviews
- Look for zero prepayment charges
Trusted Comparisons:
- Paisabazaar.com
- BankBazaar.com
- Bajaj Markets
- Cred
✅ 10. Know the Eligibility Criteria in Advance
Each bank or NBFC has a minimum salary limit—some as low as ₹10,000/month.
General Minimum Salary Requirements:
| Bank / NBFC | Minimum Salary Required |
|---|---|
| HDFC Bank | ₹15,000 |
| ICICI Bank | ₹17,500 |
| SBI | ₹15,000 |
| Paysense | ₹12,000 |
| KreditBee | ₹10,000 |
💬 Frequently Asked Questions (FAQs)
❓ Can I get a personal loan with a salary of ₹12,000?
Yes, NBFCs like KreditBee and Paysense often approve loans for people earning ₹10,000–₹12,000/month.
❓ Will a low credit score hurt my chances?
Yes. Try to get your score above 700 before applying. Add a co-applicant if your score is low.
❓ Which loan is best for a low salary?
Small personal loans or digital loans from NBFCs are best if you earn less than ₹20,000/month.
✅ Conclusion: You Can Do It—Just Be Smart
A low salary should not stop you from getting a personal loan. But to increase your chances, you need:
- A good credit score
- Smart planning
- Low EMIs
- Responsible borrowing
Don’t fall for shady apps or illegal lenders. Use legit platforms and keep your finances in check.
🏁 Final Tip:
If your loan is rejected today, build your credibility slowly and try again in 3–6 months with better documentation and discipline.