Securing a low salary personal loan in India can be a viable option for individuals with modest incomes who need financial assistance. While the eligibility criteria for such loans can vary among lenders, there are common requirements that applicants must meet. This article outlines the minimum salary and other eligibility criteria necessary to qualify for a personal loan, particularly for a Rs.2 lakh personal loan.
Understanding Low Salary Personal Loans
Low-salary personal loans are designed for individuals with limited incomes who need funds for various purposes, such as medical emergencies, home repairs, or other personal expenses. These loans typically have flexible eligibility criteria to accommodate lower-income applicants.
Criteria To Qualify for a Low Salary Loan
One of the primary criteria for qualifying for a low salary personal loan is the applicant’s monthly income. Most lenders have a minimum salary requirement to ensure the borrower can repay the loan. Typically, the minimum salary requirement ranges from Rs.15,000 to Rs.25,000 per month, depending on the lender and the city of residence.For instance:
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Metro Cities: In metro cities like Mumbai, Delhi, and Bangalore, the minimum salary requirement is often higher, around Rs.20,000 to Rs.25,000 per month.
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Non-Metro Cities: Lenders might set a lower minimum salary requirement in smaller cities and towns, usually around Rs.15,000 to Rs.20,000 per month.
Age Criteria
Age is another important factor that lenders consider. Generally, applicants need to be between 21 and 60. Some lenders might extend the upper age limit to 65 for pensioners or retired individuals.
Employment Stability
Lenders prefer applicants with stable employment. Most lenders require at least 1 year of continuous employment for salaried individuals, with at least 6 months at the current job. For self-employed individuals, lenders usually require proof of stable income for at least 2 years.
Credit Score
A good credit score significantly improves the chances of loan approval. Most lenders prefer a credit score of 700 or above. However, some lenders offer loans to individuals with lower credit scores, although this might come with higher interest rates.
Documentation
Applicants must provide several documents to verify their eligibility for a low salary personal loan. Commonly required documents include:
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Identity Proof: Aadhaar card, PAN card, voter ID, or passport.
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Address Proof: Utility bills, rent agreement, or Aadhaar card.
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Income Proof: Salary slips for the last three months, bank statements for the last six months, and income tax returns (for self-employed individuals).
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Employment Proof: Employment certificate or an offer letter from the current employer.
Additional Eligibility Criteria
Besides the primary criteria mentioned above, some lenders may have additional requirements, such as:
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Existing Loan Obligations: Lenders assess the applicant’s existing loan obligations to ensure they can manage the repayment of a new loan.
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Company Category: Some lenders categorise companies into different tiers based on their stability and reputation. Employees working in high-tier companies might find it easier to get loan approval.
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Educational Qualifications: While not very common, some lenders may consider the applicant’s educational qualifications as an additional factor.
How To Apply for a Rs.2 Lakh Personal Loan?
When applying for a Rs.2 lakh personal loan, it’s essential to ensure that you meet all the eligibility criteria set by the lender.
Here Are Some Steps to Follow:
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Check Your Eligibility: Use online eligibility calculators lenders provide to check if you meet the minimum salary and other requirements.
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Compare Lenders: Different lenders offer various terms and conditions. Compare interest rates, processing fees, and repayment tenures to find the best deal.
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Prepare Documents: Gather all the required documents to avoid delays in the application process.
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Apply Online: Most lenders offer an online application process. Complete the form accurately and upload the necessary documents.
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Await Approval: Once submitted, the lender will review your application. If approved, the loan amount will be disbursed to your bank account.
Conclusion
Securing a low salary personal loan in India is possible with the right preparation and understanding of the eligibility criteria. Applicants can increase their chances of approval by meeting the minimum salary requirements, maintaining stable employment, and having a good credit score. A Rs.2 lakh personal loan can provide much-needed financial relief, helping individuals manage various personal expenses effectively. Always compare different lenders and their terms to find the most suitable loan option for your needs.
