What Are The Personal Loan Options If You Earn Less Than INR 20,000?
14 Aug 2017
Personal loans are a great option to achieve what you desire. The majority of us belong to the working class. If we desire to purchase some property or house or even pay for some major event we have to make choices – either break our savings or apply for a loan. An Unsecured personal loan in many cases turns out to be very helpful. Thus low salary personal loan is now an option made available by the banks and NBFCs around the country.
Banks don’t charge a person more than 50 percent of his or her salary. For instance, if your salary is INR 1 Lakh per month, you cannot receive loan whose monthly installment would be higher than half your salary. Thus you cannot obtain a loan of above INR 50,000. Banks offer personal loans to people who fall in the group of income people on extra conditions like the loan applicant should be from a metropolitan city and the rate of interest will be around 15 percent to 20 percent.
Individuals who are living in the rural and semi-urban areas, earning 10k per month would lend themselves a maximum loan amount of INR 1.5 lakhs at a minimum interest rate of 15.5% till 24%. These are the general figures that are prevailing in the market. The rates and the tenure offered differ from bank to bank as per their policy.
Non-Banking Financial Companies provide a loan to individuals with low salaries but on a higher interest rate. The maximum loan amount sanction is 1.5 lakhs to people earning 15,000 a month. Thus one has to decide what he prefers the most. What is more favorable, a bank or a Non-Banking Financial Company. It’s ultimately his/her call.
People who have fewer ways of earning, interest rates that are high can prove quite unaffordable in long run. Thus the ability to repay the loan might narrow down. A rate of interest though it looks petty in long run; unstable financial situations make the task of repayment of loan daunting. After taking all this into account we must praise the fact that there are banks and NBFCs who are providing low salary personal loan to suitable candidates.
The Options That are Available:
- Opting for a secured loan which is a collateral loan against any collateral such as Gold assets, fixed deposits etc.
- People are not aware of the peer to peer lending companies.
- Involving a Co-borrower.
- Taking the Help of various Government Schemes like Pradhan Mantri’s Yojana’s are for the betterment of the underprivileged.
Any problems can be faced by any person at any point of time in his or her life, the income group doesn’t matter for circumstances. But now even low-income people have an option.
To Be Eligible For a Personal Loan:
- The applicant must be between the age group 21-60 years of age
- The person should be working or should be self-employed
- If the person is salaried then he must be working with the current employer for at least a year
- If the person is self-employed then he must have been running the business for 2 years
- The person applying for the loan must have the salary of at least 20,000 per month, depending on the location the conditions may vary
- The CIBIL score of 750 is necessary
These are the conditions that are to be followed by the applicant before he/she applies for a personal loan. All the criteria need to be fulfilled in order to prevent the loan effort from getting rejected. Thus careful consideration is important if you are thinking to apply for a Personal loan.