Low salary? Here are 6 banks that offer personal loans you can qualify for | Mint

Personal loans are a popular choice for people looking for quick cash to cover their finances or if they are facing any sudden emergency. These loans offer quick loan disbursement as well as provide a simple application process. Since these loans are unsecured, your credit score and income becomes one of the most important factors for loan eligibility.

If you are in need of a personal loan, however, you do not have a high salary, you might face difficulty in getting your personal loan application approved. Let us have a look at some of the top banks which provide personal loans to low salary individuals

Source: Paisabazaar, as of December, 2024

1. ICICI Bank

Interest rates:10.85% onwards

Maximum loan amount:Up to Rs. 50 lakh

Loan tenure:Up to 6 years

2. HDFC Bank

Interest rates: 10.85% onwards

Maximum loan amount:Up to Rs. 40 lakh

Loan tenure:Up to 6 years

3. Kotak Mahindra Bank

Interest rates:10.99% onwards

Maximum loan amount:Up to 40 lakh

Loan tenure:Up to 6 years

4. IndusInd Bank

Interest rates:10.49% onwards

Maximum loan amount:Up to 50 lakh

Loan tenure:Up to 6 years

5. State Bank of India

Interest rates:11.45% onwards

Maximum loan amount:Up to Rs. 30 lakh

Loan tenure:Up to 6 years

6. Axis Bank

Interest rates:11.25% onwards

Maximum loan amount: Up to Rs. 10 lakh

Loan tenure:Up to 5 years

Eligibility criteria for personal loans for low salaried individuals

You can apply for a personal loan if you are a salaried individual as well as if you are self employed. Usually lenders carefully assess your employment and salary in order to determine your creditworthiness.

You are required to work in the same organisation for at least six months to one year with a regular salary to have better chances of getting your application approved. Lenders usually approve applications with credit scores of 650 and more.

However, if you have a lower score, you may be offered a loan under certain scenarios. But, the interest rate will be gigantic. Most lenders require a minimum age generally between 21 and 60 years.

Tips to improve your chances of getting personal loan application approved with low salary

Maintain a good credit score: Having a good credit score is important because it gives you better chances of getting your loan application approved as well as qualify for getting lower interest rates.

Apply with a co-applicant: Applying with a co-applicant can enhance chances of approval especially if the co-applicant has a better income.

Choose a longer tenure: By choosing a longer tenure, you will be able to ease out high EMI costs and also improve your chances of approval.

Provide additional income proof:If you have any other income like rent, mutual funds or stocks, by disclosing them you can make your profile stronger and improve your chances of getting the loan approved.

In conclusion, if you have a low salary, it is better to first evaluate whether or not you really require a personal loan. You must make a note that personal loans attract higher interest rates than any other loan in the market. Hence, if you really are in need of funds, you should first explore other options and then choose a deal which fits your budget.

(Note: Raising a personal loan has its own risks)