Low salary? Here are 6 banks that offer personal loans that you may qualify for

Personal loans are a popular choice for people looking for quick cash to cover their finances or when faced with a sudden emergency. These loans offer quick loan disbursement and offer an easy application process. Because these loans are unsecured, your credit score and income become one of the most important factors in qualifying for a loan.

However, if you need a personal loan and don’t have a high salary, you may have trouble getting your personal loan application approved. Let’s take a look at some of the best banks that provide personal loans to people with low salaries

Source: Paisabazaar, as of December 2024

1. ICICI Bank

Interest rates:From 10.85%

Maximum loan amount:Up to Rs. 50 lakhs

Term of the loan:Up to 6 years

2. HDFC Bank

Interest rates: From 10.85%

Maximum loan amount:Up to Rs. 40 lakhs

Term of the loan:Up to 6 years

3. Kotak Mahindra Bank

Interest rates:From 10.99%

Maximum loan amount:Up to 40 lakh

Term of the loan:Up to 6 years

4. IndusInd Bank

Interest rates:From 10.49%

Maximum loan amount:Up to 50 lakh

Term of the loan:Up to 6 years

5. State Bank of India

Interest rates:From 11.45%

Maximum loan amount:Up to Rs. 30 lakhs

Term of the loan:Up to 6 years

6. Ash bank

Interest rates:From 11.25%

Maximum loan amount: Up to Rs. 10 lakhs

Term of the loan:Up to 5 years

Eligibility Criteria for Personal Loans for Low-Wage Individuals

You can apply for a personal loan if you are an employee, but also if you are self-employed. Typically, lenders carefully review your employment and salary to determine your creditworthiness.

To increase the chances of your application being approved, you must work at the same organization for at least six months to one year with a regular salary. Lenders typically approve applications with credit scores of 650 and above.

However, if you have a lower score, you may be offered a loan in certain scenarios. But the interest will be huge. Most lenders require a minimum age, usually between 21 and 60.

Tips to Increase Your Chances of Approval for a Low Salary Personal Loan Application

Get a good credit score: Having a good credit score is important because it gives you better chances of getting your loan application approved and qualifying for lower interest rates.

To apply together with a co-applicant: Applying with a co-applicant can increase the chance of approval, especially if the co-applicant has a better income.

Choose a longer term of office: By opting for a longer tenure, you can alleviate the high EMI costs and also increase your chances of approval.

Provide additional proof of income:If you have other income, such as rent, mutual funds or stocks, disclosing these can strengthen your profile and increase your chances of loan approval.

In conclusion: if you have a low salary, it is better to first assess whether you really need a personal loan. Keep in mind that personal loans come with higher interest rates than any other loan on the market. So if you really need money, you should explore other options first and then choose a deal that fits your budget.

(Please note: Taking out a personal loan carries its own risks)