There is no requirement of putting out individuals' collaterals or assets to get personal loans as they are unsecured personal loans. Thus lenders prefer borrowers who are professionals with good earnings so that they'll have no problem repaying monthly installments and staying timely.
However, most individuals in India earn low income with earnings of less than INR 20,000 per month. So if most of you are thinking it's difficult to get a personal loan with a low income, it's not true. Everyone can get a personal loan. It's a fairly difficult task, but it is not impossible.
Eligibility for availing of a personal loan depends on other factors as well, just not income. The other factors are good credit scores, timely repayment history, nature of employment, age, etc. Thus, being appropriate in all the other matters of eligibility can get individuals a personal loan for low salary.
Let's further in detail understand the facts to avail of personal loan, in case individuals are earning a low income.
Tips To Take A Low Salary Personal Loans And Its Benefits
Below are a few of the tips on why personal loans are the easiest option to choose for individuals who earn low income and tips to avail of personal loans for low-salary individuals.
Easily Available
Personal loans in comparison to other credits in the finance market are easiest to avail of with minimal documents and minimum steps online. It is quick and hassle-free. The approval rate is usually higher than other loans and will get funds transferred in the shortest possible time within the same day. Of Course, if individuals fulfill all the other eligibility criteria.
Loan Amount Availability
Personal loans are offered to their customers for up to INR 15 lakhs depending on their annual income. Thus loans are offered according to the individual's repayment capacity and history of credit.
Credit Score
Credit scores are one of the most important factors, lenders analyze before approving personal loans. So displaying good credit scores ranging from 661 to 850 is a good sign and individuals will most likely get an approval immediately even if they have low income.
Guarantor
Individuals with low income can tie up with their close family members and guardian as co-applicant to avail of the approval of a loan. Also, it's important to keep in mind that the co-applicant and the concerned individual must possess good credit scores to avail of a personal loan.
Collaterals
Submitting collaterals or assets as surety will boost the confidence of the lender to approve a personal loan. As lenders can take over the collateral in case of default in repayments.
Thus these are some of the points to remember before applying for personal loans for people who have lower income than usual.
People who have low incomes can avail of personal loans with higher interest rates for emergencies or choose the above options to avail of the loan. Get a personal loan from Buddy Loan easily online, with low-interest rates starting from 11.99%. Also, get personal loans here without any additional costs like prepayment fees and processing fees which will save you little money.
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