Published on Nov 23, 2020Updated on Mar 4, 2026
A Personal loan is an unsecured loan. Hence, financial institutions prefer advancing it to individuals with sufficient income, as they would be capable of paying the monthly EMIs and less likely to default.
However, for people belonging to the low-income group, getting a personal loan is a fairly difficult task, but not impossible. Eligibility for a personal loan depends on many factors other than income like credit score, repayment capacity, nature of employment, age, etc. Therefore, if you fulfill all the other eligibility factors, then you can easily avail of a low salary personal loan.
Let’s check out in detail, how to successfully get a personal loan with a low income and salary.
Compared to any other category of loan, personal loans are easily available and are approved in the shortest possible time, only if you fulfill the minimum eligibility criteria.
One of the most important factors that financial institutions depend on is the disposable income of the applicant to offer a personal loan, which should be at least 30-40% of the net monthly income.
Financial institutions offer a maximum of Rs 25 lakh as a personal loan depending on the annual income of the applicant.
Therefore, if a person’s monthly income is lower than a certain limit, he or she can easily get a personal loan whose amount is proportional to his monthly income and repayment capability. Since low-income loan applicants are categorized as high-risk borrowers, personal loan interest rates are fixed on the higher end by the lender.
Also, it is advisable to check the personal loan eligibility criteria of respective lenders before applying. For instance, the following is SMFG India Credit’s minimum eligibility criteria for applying for a personal loan. Please note that these vary between lenders.
Must Read: Best Ways To Get a Personal Loan at the Best Interest Rate
|
Eligible Age |
21-60 years |
|
Minimum work experience required |
1 year |
|
Experience in the current company |
6 months |
|
Minimum Credit Score |
705 |
|
Minimum Salary (residents of Mumbai or Delhi) |
INR 25,000 |
|
Minimum Salary (residents of any other Indian city) |
Rs. 16,000* |
Apart from the minimum eligibility criteria set for the salaried individuals, self-employed applicants should have a minimum yearly profit after tax determined based on industry and profession.
For availing a maximum personal loan amount based on your income, age and credit score, it is advisable to clear off all the pending dues to improve personal loan eligibility.
Alternatively, you can use a personal loan eligibility calculator to check to know the amount you can borrow on your income/salary. Let’s have a detailed look.
It is a free online tool that lets you check the amount you can borrow based on eligibility criteria. The amount is determined based on your age, income, place of residence, ongoing EMIs, and personal loan interest rates.
The personal loan eligibility calculator is dynamic and provides near accurate results. Therefore, if you want to successfully apply for a personal loan, then apply for a lower amount or up to the eligible amount shown in the calculator.
With features designed to make your life easier, these loans offer a lifeline when you need it the most.
To apply for a personal loan from SMFG India Credit, follow these steps:
Enter your mobile number, PAN, pincode, and employment status (salaried or self- employed).
Receive and enter a 6-digit OTP for mobile verification.
Input additional information like your email address, date of birth, gender, and annual household income; email ID verification is also necessary.
For salaried individuals, submission of employment details is essential.
We request you to provide your bank statement through Net Banking, an Account Aggregator, or by uploading it. This banking information will allow us to present a loan offer (only for salaried individuals).
Complete identity verification by taking a selfie and share address information via CKYC, Offline Aadhaar XML-based KYC, or DigiLocker.
Enter bank account details for our verification.
Upon successful bank account verification, proceed to add extra details in the 'Additional Details' section. These include the loan’s purpose, marital status, father’s name, and mother’s maiden name.
Choose a re-payment option between debit card or internet banking and set up E-NACH.
Sign the loan agreement digitally after reviewing it and complete the process with an OTP validation.
These easy steps will take you one step closer to achieving your financial goals.
When you're seeking a personal loan on a low salary, it's essential to be strategic in your approach. Here are five key factors to consider:
Securing a personal loan with a low salary might seem challenging, but with the right strategies, it's entirely possible. Here are three key steps to follow:
Maintain Healthy Disposable Income: Lenders prefer borrowers with a disposable income of at least 30-40% of their net monthly income. Calculate your monthly expenses and debts, and ensure that your disposable income meets this criterion. Cutting unnecessary expenses can help.
Build a Strong Credit Score: A good credit score is your best friend when you have a low salary. Ensure timely payments on existing debts and credit cards. Having a credit score above 750 can increase your chances of approval and negotiating a lower interest rate.
Alternative Documentation: If you don't have a salary slip, don't worry. You can submit alternative documents like Form 16, income certificates, bank statements, or income tax returns to demonstrate your income stability and repayment capacity.
The personal loan interest rates offered by SMFG India Credit ranges between 13%* to 33%* per annum. The final rate offered to an applicant depends on their credit profile and other factors. The other factors include:
According to the rule, the lower the credit risk, the lower will be the interest rate. Therefore, in case of a low salary personal loan, ensure a good credit score and enough income over fixed monthly obligations to make a good case for a lower interest rate on the personal loan.
As compared to other loan types , personal loan documentation is minimal and doesn’t involve heavy paperwork. The documents required are:
Most financial institutions prefer salary slip and surety of income earning capacity of the applicant while giving out a personal loan. However, due to the varied nature of jobs and occupations, many don’t get the salary slip. In such a case, you have the following options.
You can produce other financial documents like bank account statements, Form 16, income certificate, income tax returns
You can apply with another applicant, who can provide the documents required. In this case, the co-applicant also needs to have a clean credit report, a steady income, and yes - salary slips or other documents to provide stable income proof.
Must Read: How Much Personal Loan Can You Take On Your Salary?
The chances of getting a personal loan with low income and no salary slip are low. Some lenders may be willing to provide a loan depending on how other criteria match, but they would probably also charge you a very high-interest rate.
Therefore, before applying, check all the eligibility criteria and consult with officials before applying. Because, if your loan application gets rejected, it will affect your credit score and lessen the chances of getting a loan in the future.
* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us
If your CIBIL score is low, involving a co-applicant or guarantor can help you secure a personal loan.
The processing fees for personal loans Up to 3.75% of the total loan amount + GST.
The minimum salary requirement for a personal loan is Rs. 25,000 for residents of Mumbai or Delhi and Rs. 16,000* for residents of other Indian cities.
Eligibility factors include age (21-60 years), minimum work experience (1 year), current company tenure (6 months), a credit score of 705, and minimum salaries of INR 25,000 (Mumbai/Delhi) or Rs. 16,000* (other cities).
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