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How to Get a Personal Loan if you have Low Salary / Income?

Published on Nov 23, 2020Updated on Nov 8, 2023

How to Get a Personal Loan if you have Low Salary / Income?

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.

Getting a Low Salary Personal Loan

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

For Salaried

Eligible Age

21-60 years

Minimum work experience required

1 year

Experience in the current company

6 months

Minimum Credit Score


Minimum Salary (residents of Mumbai or Delhi)

INR 25,000

Minimum Salary (residents of any other Indian city)

INR 20,000

For Self Employed

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.

Personal Loan Eligibility Calculator

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.

Features and benefits of instant personal loan for low salary

With features designed to make your life easier, these loans offer a lifeline when you need it the most.

  1. Generous Loan Amount: You can avail up to INR 25 lakhs* through these loans, providing the financial flexibility you need.
  2. Collateral-Free: These loans are collateral-free, ensuring you can access funds without pledging your valuable belongings.
  3. Flexible Tenure: Enjoy the freedom of choosing a repayment tenure that suits your financial situation. Tailor the loan to fit your budget and repay comfortably.
  4. Attractive Interest Rates: These loans often come with competitive interest rates, making them affordable for everyone.
  5. Hassle-Free Application: The 100% paperless online application process ensures you can apply from the comfort of your home or office, saving you time and energy.

How to apply for an instant personal loan for a low salary?

Here's a hassle-free guide on how to apply for personal loan:

1. Phone Verification: 

Start by entering your phone number. A One-Time Password (OTP) will be sent to your mobile for verification. Confirm your number securely, ensuring the process is both quick and secure.

2. Fill in Your Details:

Provide essential personal information such as your name, address, and date of birth. Additionally, input your bank details, ensuring seamless fund transfer.

3. Choose Loan Amount: 

Choose your desired loan amount and tenure that best suits your financial needs. 

4. Document Upload: 

Finally, upload the necessary documents, such as your ID proof, address proof, and income documents. Ensure these are clear and valid for a smooth approval process.

Factors to Consider When Availing a Personal Loan for Low Salary

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:

  1. Credit Score: Your credit score is a critical determinant of loan approval and interest rates. Maintain a good credit history by paying bills on time and managing existing debts responsibly.
  2. Income: Ensure your monthly income can comfortably cover the loan payments. 
  3. Age: Being younger may result in stricter scrutiny, while older applicants may have more stability in terms of income and employment.
  4. Occupation: Your occupation can influence your loan approval. Some professions are considered more stable than others. Lenders may offer better terms to individuals in secure job sectors.
  5. Employer's Profile: Lenders often consider your employer's reputation and stability. Working for a reputable company can boost your loan prospects.

Strategies To Adopt For Securing A Personal Loan With Low Salary

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.

How to Get Low Personal Loan Interest Rates?

The personal loan interest rates offered by SMFG India Credit ranges between 11.99%* to 36%* per annum. The final rate offered to an applicant depends on their credit profile and other factors. The other factors include:

  1. Monthly income
  2. The personal loan amount
  3. And, fixed monthly obligation including outstanding loans
  4. Nature of employment
  5. Educational qualifications
  6. Fit with other eligibility criteria

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.

Personal Loan Documentation

As compared to other loan types , personal loan documentation is minimal and doesn’t involve heavy paperwork. The documents required are:

  1. Filled-in personal loan application form    
  2. KYC documents (PAN Card, AADHAAR and Voter ID)
  3. Form 16 and last 2 months salary slip (for salaried)    
  4. Income proof/ IT Returns (for self-employed)    
  5. Last three months bank account statement of salary account/ current account (for self-employed)

How to Get a Personal Loan without a Salary Slip?

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.


Can I Get A Personal Loan For A Low Salary If My CIBIL Score Is Low?

If your CIBIL score is low, involving a co-applicant or guarantor can help you secure a personal loan.

What Are The Fees And Charges Applicable Personal Loans For Low Salary?

The processing fees for personal loans can range from 0% to 6% of the loan amount.

What Is the Lowest Minimum Salary for a Personal Loan?

The minimum salary requirement for a personal loan is INR 25,000 for residents of Mumbai or Delhi and INR 20,000 for residents of other Indian cities.

What Factors Affect Eligibility for a Personal Loan?

Eligibility factors include age (21-60 years), minimum work experience (1 year), current company tenure (6 months), a credit score of 750, and minimum salaries of INR 25,000 (Mumbai/Delhi) or INR 20,000 (other cities).

How long does it take to obtain a low-salary personal loan?

It takes approximately 72 hours* for processing and funds are transferred within 24 hours* of approval for low-salary personal loans.

Is the minimum salary requirement different for metropolitan cities?

Yes, the minimum salary requirement can vary for metropolitan cities, with INR 25,000 for Delhi and Mumbai.

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*Terms and conditions apply
**Subject to foreclosure charges. Terms and conditions applicable.

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.