Financial emergencies can occur unannounced, irrespective of one’s income. In such situations, individuals with a low income may constantly wonder whether they are eligible to borrow funds or not.

While getting a low salary personal loan is difficult, it is not impossible. Personal loan eligibility depends upon varied parameters other than income. Therefore, fulfilling all the different criteria and conducting proper research could help one avail a personal loan and meet a host of financial obligations.

Ways to obtain a low salary personal loan

Here are a few ways through which you can obtain an instant personal loan with a low salary:

  • Increase the CIBIL score

A personal loan is unsecured. Thus, lenders are extra cautious while lending to risky borrowers. Financial institutions determine the creditworthiness of borrowers based on their credit/CIBIL score. Hence, borrowers looking to borrow money in the near term should know how CIBIL score is important for personal lending and work towards building their CIBIL score by taking the necessary measures. 

Here are a few positive financial habits that boost one’s CIBIL score:

  1. Making timely payments
  2. Keeping a low credit utilisation ratio 
  3. Avoid taking too many credits at the same time

Besides, individuals should also check the credit report regularly to detect discrepancies, if any. 

  • Apply with a co-applicant

Borrowers in urgent need of funds can add a co-applicant or co-borrower and increase the chances of getting a personal loan approved. The co-applicant should be a creditworthy individual with a substantial monthly income. This is a viable option for individuals who do not have a high credit score and are looking for quick loans.

  • Apply with a co-signer

A co-signer can act as a guarantor against a loan. One can add a trusted individual as a co-signer who will have to bear the expenses if the primary borrower fails to repay the loan amount. 

Applying for a personal loan with a co-signer increases the lender’s trust, resulting in application approval. 

One should remember to talk about the terms and conditions regarding a co-signer or co-borrower with their preferred lender. 

  • Fulfill lender-specific eligibility 

Meet the below-mentioned eligibility criteria to obtain a low salary personal loan:

  • The applicant must be an Indian resident residing in India
  • The age of the applicant must be between 20 and 60 years
  • Must be employed with a reputed private or public limited company or MNC
  • Must maintain a high CIBIL score of 750 or more

Meeting the eligibility also provides added benefits for existing customers. For instance, leading NBFCs like Bajaj Finserv extend pre-approved offers to applicants meeting/exceeding the eligibility. These offers help make the loan application process hassle-free and are available across various financial products, like personal loans, business loans, etc. You can check your pre-approved offer within seconds by entering your name and contact details. 

  • Submit all necessary documents 

While applying for a personal loan through an Instant Loan App or visiting a lender, one must submit certain documents. Although the set documents may vary as per lender, the basic requirements remain the same. Find them below:

  • Duly filled application form
  • KYC documents, including PAN, Aadhaar, or voter ID
  • Salary slips of the previous two months
  • Bank account statements for the last three months

Before proceeding with the low salary personal loan, ensure to keep all these documents handy for a hassle-free experience. Consult the lender and check the eligibility before applying for this financing.  

Is it possible to get a low-salary personal loan?

Personal loans attained a growth of around 27% by September end 2021. This rise is enormously attributed to the no-collateral nature and easy approval of this financing. 

One of the most critical factors lenders consider before approving personal loan applications is the borrower’s disposable income. 

Financial institutions disburse the loan amount after considering specific parameters, including:

  • CIBIL score
  • Age
  • Income

If an individual fails to fulfill the income criterion, he/she can attempt to qualify for the other criteria that lenders consider. 

Applicants must note that if they apply for a personal loan with a low salary, they will be categorized as high-risk borrowers by financial institutions. As a result, the interest rate is fixed on the higher side. 

Additionally, individuals must check the personal loan eligibility for different lenders in their instant loan app. One can also use an online personal loan eligibility calculator to determine how much loan quantum they can borrow corresponding to their income.