In India, personal loans can be a lifesaver during financial emergencies. However, one of the major concerns for people with a low income is whether they are eligible for a personal loan. While it may seem challenging, it’s not impossible to secure a personal loan, even with a low salary. In this blog, we’ll explore various tips and strategies to increase your chances of getting a personal loan with a low income, while also highlighting FundsTiger, a trusted financial service provider, that specializes in helping individuals in such situations.
Why a Low Salary Can Be a Roadblock for Personal Loans
When applying for a personal loan, banks and financial institutions consider several factors such as your income, credit score, job stability, and repayment capacity. For those with a lower salary, the primary concern of lenders is whether they can repay the loan in time without defaulting. This makes it crucial for low-income earners to understand the various factors that can affect their loan eligibility and take steps to improve them.
Here are some common challenges faced by low-salary earners:
- Limited Loan Amount: Lenders may offer a smaller loan amount to individuals with a lower income, as they are perceived to be at a higher risk of defaulting.
- High-Interest Rates: People with a low salary may also be charged higher interest rates, increasing the total cost of the loan.
- Stringent Eligibility Criteria: Traditional banks may have stricter requirements, making it harder for low-income individuals to qualify.
Despite these challenges, it is still possible to get a personal loan if you are strategic in your approach.
How to Improve Your Chances of Getting a Personal Loan with a Low Salary
Here are a few key strategies to improve your chances of securing a personal loan, even with a low salary:
1. Choose the Right Lender
Different lenders have different eligibility criteria. While traditional banks may have stricter rules, fintech companies and Non-Banking Financial Companies (NBFCs) often have more flexible lending policies. FundsTiger is one such NBFC that provides customized solutions for individuals with low income. They understand the unique challenges faced by different income groups and tailor their loans accordingly.
FundsTiger offers easy personal loan options for individuals with salaries as low as Rs. 10,000, making it easier for you to qualify. Their online application process ensures quick disbursal and minimal documentation.
2. Highlight Additional Income Sources
If you have any additional sources of income, such as freelance work, rental income, or part-time jobs, make sure to mention them when applying for a loan. Lenders may consider this extra income while assessing your repayment capacity. This can improve your eligibility for higher loan amounts and better terms.
3. Maintain a Good Credit Score
Your credit score plays a significant role in loan approval. Even if you have a low salary, a good credit score can help you secure a personal loan with favorable terms. A credit score of 700 and above is generally considered good in India. To maintain a good score:
- Pay off credit card dues and existing loans on time.
- Avoid defaults on payments.
- Keep your credit utilization ratio low.
FundsTiger also offers a credit score checking tool to help you monitor and improve your score before applying for a loan. They provide a free consultation to help you understand ways to enhance your credit profile.
4. Apply for a Joint Loan
If your income is too low to meet the eligibility criteria, applying for a joint loan with a co-applicant who has a higher salary or better credit profile could boost your chances of approval. In such cases, the co-applicant’s income and credit score will be taken into account, improving your eligibility for a higher loan amount and better interest rates.
5. Opt for a Longer Loan Tenure
A longer loan tenure reduces the monthly EMI amount, making it easier for you to manage repayments within your limited income. While this may increase the total interest paid over the loan period, it can make your monthly cash flow more manageable, improving your chances of loan approval.
FundsTiger offers flexible repayment options where you can choose a tenure that aligns with your financial capacity, allowing you to repay the loan without straining your finances.
6. Provide Collateral
If you are facing difficulties in getting an unsecured personal loan, you may consider providing collateral, such as a fixed deposit, property, or other assets, to secure the loan. Secured loans often have lower interest rates and are easier to get approved, even if you have a low income.
FundsTiger offers both secured and unsecured loan options, so you can choose one that best suits your financial situation.
7. Check for Special Loan Schemes
Some banks and financial institutions provide personal loans to low-salary earners under special schemes. These could be government-backed or institution-specific programs aimed at financial inclusion. Always check if you are eligible for any such schemes.
8. Show a Stable Job History
Lenders prefer applicants with stable job histories, as it assures them of a steady income. Even if your salary is low, if you have been working in the same job or industry for a long time, you may still be eligible for a personal loan. A stable job history increases the lender’s confidence in your ability to repay the loan on time.
Why Choose FundsTiger for Personal Loans?
FundsTiger is a leading fintech platform that focuses on providing personal loans for people with different income levels, including low-salary earners. Here’s why you should consider applying for a loan through FundsTiger:
- Flexible Eligibility Criteria: Unlike traditional banks, FundsTiger has more flexible criteria, making it easier for low-salary individuals to qualify for personal loans.
- Quick Loan Processing: FundsTiger’s digital-first approach ensures a smooth and fast loan application process. With minimal documentation required, loan approval and disbursal are often completed within 24 hours.
- Competitive Interest Rates: Despite being an NBFC, FundsTiger offers competitive interest rates, ensuring that you don’t end up paying exorbitant amounts in interest.
- Customizable Loan Amounts: You can apply for personal loans starting as low as Rs. 10,000, making it accessible even to those with limited financial means.
- Excellent Customer Support: FundsTiger offers excellent customer service and financial consultation to help you throughout the loan application process.
- No Hidden Charges: FundsTiger is transparent with its fees and charges, so you won’t face any surprises when it comes to repayment.
Steps to Apply for a Personal Loan from FundsTiger
- Visit the Website: Head to the official FundsTiger website and choose the ‘Personal Loan’ option.
- Fill in the Application Form: Complete the online application form by entering your personal, employment, and financial details.
- Submit Documents: Upload the required documents, such as proof of identity, address, income, and bank statements.
- Get Loan Approval: Once submitted, FundsTiger will assess your application and provide loan approval, typically within 24 hours.
- Loan Disbursal: Upon approval, the loan amount will be credited to your bank account.
Conclusion
Securing a personal loan with a low salary in India in 2024 is not as daunting as it may seem. With the right approach, including choosing the right lender like FundsTiger, improving your credit score, and exploring flexible loan options, you can successfully get the financial help you need. FundsTiger provides excellent solutions tailored to individuals with low income, making it easier for them to access personal loans at competitive rates and terms.
Always ensure you evaluate the loan terms and conditions, and choose a loan that fits your repayment ability to avoid financial strain.