Salary more than INR 20,000
Personal loans for salary more than INR 20,000"
Are you somebody who has a low income level and wish to avail a low income personal loan? Well, there are some lending institutions that offer personal loans for low incomes. These personal loans for people with low salary come with a set of eligibility parameters that need to be satisfied. Different lending institutions have different minimum income criteria for personal loans that they offer. As such, personal loans for low salary (personal loans for people with low salaries) are now quite common.
Before we go ahead, let us first understand personal loans and then go on to delve into the characteristics of personal loans for people with low incomes.
Personal loans are the one of the most commonly availed forms of loans for a lot of reasons – they are unsecured, easily available, and come with relatively easy eligibility parameters. The amount that can be availed from a lending institution is directly dependent on the individual’s income, and of course, the overall credit profile.
Basic factors that influence eligibility for "personal loans for low income"
Let’s observe some basic eligibility criteria for personal loans – we look at eligibility in the case of both traditional lenders as well as new-age lending organisations like Fintech companies like Qbera, that have literally come to rule the “personal loans for low income individuals” space in India.
Top banks, mostly catering to the private sector and are active in the consumer banking space, require you to have a good credit score in order to be eligible for a personal loan.
On the other hand, Fintech companies offer loans to individuals even with low credit scores. In most cases, the minimum credit score to be eligible for an instant personal loan with a Fintech company is about 600. Conventional lenders like top private banks only accommodate applications that have a credit score of over 750.
Note that late payments and defaults can severely affect your credit score, thereby jeopardising your chance of availing a credit product in future.
Also, while personal loans for low incomes are a reality, if an individual with low income applies for a personal loan, the loan won’t generally be approved if the person has too many monthly liabilities.
Years of professional experience
While lending institutions provide loans to self-employed individuals as well, the easiest way to qualify for a personal loan is if you are salaried. While evaluating this component in determining eligibility, most lenders require you to have a minimum of 2-3 years of work experience to qualify for a loan. This, however, is mostly in the case of traditional lenders (top private banks that usually have stringent eligibility parameters).
Fintech lenders, on the other hand, don’t require you to have 2 or 3 years of work experience in order for you to become eligible. They allow you to apply even if your experience spans just one year.
The reputation of your employer is another essential parameter that determines your loan eligibility. This holds true for both ordinary personal loans as well as low income personal loans. If you are a salaried individual applying for a loan from one of India’s top banks, you will only be given a loan if your employer is listed with the bank/lender.
Note that banks evaluate lender risk and stability profiles and accordingly add them into their database. So, if the employer is listed, employees of that organisation will qualify for a personal loan, provided other eligibility parameters are met/satisfied.
Fintech companies that have a strong presence in the loan market today, offer personal loans for people with low salaries, even if the employer isn’t a listed company.
Fintechs like Qbera cater to employees of over 7 lakh employers in India. So if you are looking for a low-salary personal loan or low income personal loan in India, applying for one with a Fintech company is your best bet.
Number of debt sources
A rather imperative parameter that is considered is the number of sources of debt you have. As such, this aspect reflects in your credit score itself. But if you are looking for a personal loan for people drawing a salary, then you must make sure that you do not have too many debt sources. If you have more than one loan account that is eating into 20% - 30% of your income, you’ll most probably not be given the loan.
Facts about Qbera's personal loans for low income persons
While low income personal loans are a reality, there is the other type of low income loan – an instant loan for people with low salaries. These instant loans are, once again, offered by Fintechs. Let’s look at some facts pertaining to instant loans for people with low salaries.
Instant approval and loan disbursal within 24-48 hours
If you are looking for an instant loan for low income individuals, well, you’re in for some really good news – once you apply for your loan, you can get instant approval based on your credit profile, and if all parameters of eligibility are met, you can get the amount disbursed to your loan account within 24-48 hours.
Online document submissions
If you get instant approval and your credit profile is up to the mark, your documents don’t have to be physically verified. You can upload all your documents online. Verification of your details will also be done online.
Credit score for low income personal loans
You can get a loan if your credit score is above 600. Instances of late payments in the past will not completely jeopardize the probability of application approval. While such is the case, you however, shouldn’t have instances of defaults on availed loans in the last 1 year.
As mentioned earlier, if you apply for an instant low income personal loan with Qbera, you can get approved even if your employer is not listed.
Here is a piece of information that you can keep in mind:
There are several lending institution starting from banks, licensed financial institutions, NBFCs and Fintech companies that offer personal loans to individuals. While lending institutions mostly offer loans to salaried individuals, self-employed individuals with stable income levels are also offered personal loans.
Personal loans have evolved considerably over the years – the minimum income criteria for personal loans offered by traditional lending institutions used to be way higher than what it is now. Owing to the relentless competition prevalent in the market, the minimum income for personal loans (to be eligible) has come down by a massive margin.
- Processing Fee deduction of ₹5000 (2.5% of 2 Lacs) from loan amount, thus, the amount credited to your account will be ₹1.95 Lacs
- EMI of ₹7091 per month
- Total payable amount in 3 years = 36 times ₹7091 = ₹2,55,276
- Total Interest paid in 3 years = ₹55,276, hence, annual interest paid = ₹18,425 (which translates to an effective flat annual rate of interest of 9.21%)
- You must be a Salaried Employee
- Age: 23-55 years old
- Net Monthly Income must be more than Rs. 20,000.
- No defaults in the last 24 months.
- You must be residing in Delhi/NCR, Bangalore, Pune, Chennai, Mumbai or Hyderabad.
Documents Required after Digital Approval
- Aadhaar Card
- PAN Card
- 4 Cheques from your Salary Account
- Current Address Proof
- Permanent Address Proof (in case the permanent address is different from the address on Aadhaar card)
"I am really happy that I got a loan from Qbera. My application has been rejected by lenders in the past without giving any explanation for rejection. Qbera approved my loan with minimum documents. Thanks a lot once again."
I did not want to make many enquiries as many requests can lower the CIBIL score. I contacted Qbera on a Monday and by evening itself they had an offer for me. They kept me informed through every step of the process and were also flexible with regards to my commitments. In the end, the loan was disbursed within two days of documents submission. Thank you Qbera for simplifying the process and helping me find a loan. " Show more...
"It was a nice experience with Qbera. I have never seen such an easy process for getting a loan, especially when you need it the most. Thank you Qbera for your support."
"I had a hassle-free experience with Qbera. It was a very easy application procedure and in a short span of 3 days I got my loan credited to my account. Thank you so much for the support Team Qbera"
"It was very easy to get a loan from Qbera. I just applied on their website and got a confirmed offer immediately. The amount was transferred soon after. Will give it 5 out of 5"
"It's good and quick response from the Qbera team to get the loan. They are very good at the communicating the things properly and appropriately"