Will my income affect my personal loan eligibility?

Yes. Individuals who earn a higher income will be able to borrow a higher loan amount, and vice versa. It is advisable to use a personal loan eligibility calculator to know how much you are eligible to borrow.

What are the various charges that I can expect to pay when I borrow a personal loan?

Apart from the interest rate, personal loan borrowers may need to pay the processing fee, documentation charges, penal interest, swap charges, duplication statement issuance charges, stamp duty charges, part-payment charge, foreclosure/pre-closure charge, etc.

Can I borrow a personal loan even if I don’t reside in a metropolitan city?

Yes, you can borrow loans even if you don’t reside in a metropolitan city, unless otherwise specified by the lender. Lenders usually set a lower income requirement for those who reside in semi-urban and rural parts of the country.

What will happen if I do not repay my EMIs as per schedule?

If you default on your personal loan EMI payments, your credit score will be affected. You may also have to face legal action by the bank. If you had a co-signer or guarantor, it is likely that their credit score will be affected, as well.

How long do I have to wait for my personal loan application to be approved?

Most lenders process personal loan applications within 72 hours of the documents being submitted.

Personal Loan for Low Salary

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Check your Eligibility!

The income that you earn is one of the primary factors that affect your personal loan eligibility. Due to this, not all applicants will qualify for a personal loan. Let’s look a few loans that are especially catered towards individuals who earn a comparatively low salary/income.

Best Personal Loans for Individuals with Low Salaries

Bank	Interest Rate	Minimum Monthly Income	Max.Loan Amount	Loan Tenure
Axis Bank	12% - 24% p.a.	Rs.15,000	Rs.15 lakh	12 to 60 months
State Bank of India	9.60% p.a.	Rs.15,000	Rs.20 lakh	Up to 72 months
HDFC Bank	10.75% - 21.30% p.a.	Rs.25,000	Rs.15 lakh	12 to 60 months
HDB Financial Services	Up to 36% p.a.	Rs.15,000	Rs.20 lakh	12 to 60 months
Fullerton India	11.99% - 36% p.a.	Rs.20,000	Rs.25 lakh	Up to 60 months
IDBI Bank	8.80% p.a. onwards	Rs.15,000	Rs.5 lakh	12 to 60 months

Axis Bank Personal Loan

Axis Bank offers a personal loan to individuals who earn a minimum monthly income of Rs.15,000. Keep in mind that you need to be over the age of 21 years to borrow a loan from Axis Bank. Listed below are some of the key features of Axis Bank’s personal loan.

Highlights:

Salaried employees who work in public sector, private sector, and government companies can apply for a personal loan from Axis Bank.
Minimal documentation is required to apply for this loan.
The lender offers speedy approval of loans.
Balance transfer facility is offered.

Bank	Processing Fee	EMI per Lakh	Pre-Closure Charges
Axis Bank	Up to 2%	Rs.2,224	Nil	Enquire

SBI Xpress Credit Personal Loan

State Bank of India offers a personal loan solution called the Xpress Credit Personal Loan that allows individual with incomes of Rs.5,000 and above to avail funds. Prospective borrowers can borrow up to Rs.20 lakh under this scheme.

Highlights:

To avail a loan from SBI under this scheme, the applicant should have been maintaining a salary account with the lender.
To be eligible to borrow this loan, your EMI to net monthly income ratio should not be more than 50%.
Borrowers can avail a second loan one year after the disbursement of the first loan.

Bank	Processing Fee	EMI per Lakh	Pre-Closure Charges
State Bank of India	1.5% + GST	Rs. 1,883	As per the lender’s terms and conditions	Enquire

HDFC Bank Personal Loan

If you require funds to meet any emergency needs, you can avail a personal loan from HDFC Bank. Applicants are required to have a net monthly income of Rs.25,000 to be eligible to apply for this loan.

Highlights:

Eligible applicants can borrow a personal loan from HDFC Bank at an attractive interest rate.
Personal loan borrowers can also opt for the Personal Accident Cover and Critical Illness Cover for a nominal premium.
You can also secure your loan with the Sarv Suraksha Pro cover.
Balance transfer facility is offered to prospective borrowers.
Applicants should be between 21 years and 60 years of age and have a total work experience of a minimum of 2 years.

Bank	Processing Fee	EMI per Lakh	Pre-Closure Charges
HDFC Bank	Up to 2.50% (min. Rs.2,999 & max. Rs.25,000)	Rs. 2162	2% - 4% of Outstanding Principal	Enquire

HDB Financial Services

HDB Financial Services offers personal loans of up to Rs.20 lakh to individuals who earn a minimum income of Rs.15,000. Those who reside in metro cities like Ahmedabad, Chennai, Bengaluru, Kolkata, Delhi, Pune, Mumbai, and Hyderabad are required to earn at least Rs.20,000.

Highlights:

No guarantor or security is required to avail a personal loan from HDB Financial Services.
The lender offers doorstep service.
Loans are processed quickly.
The lender offers a hassle-free documentation process.
Special offers are provided to employees of select organisations.

Bank	Processing Fee	EMI per Lakh	Pre-Closure Charges
HDB Financial Services	2%	Rs. 2327	2% - 4%	Enquire

Fullerton India Personal Loan

Fullerton India offers affordable personal loans with flexible repayment terms. Prospective borrowers should earn a minimum income of Rs.20,000 on a monthly basis.

Highlights:

Loans will be disbursed to the applicant’s account within 30 minutes of approval.
The lender offers a hassle-free and paperless documentation process.
Fullerton India offers a top-up facility.

Bank	Processing Fee	EMI per Lakh	Pre-payment Charges
Fullerton India	0% to 6% of the loan amount	Rs. 2,224	0 - 7%	Enquire

IDBI Bank Personal Loan

IDBI Bank offers personal loans to salaried employees who earn Rs.1,80,000 per annum or Rs.15,000 per month. While the exact loan amount that you can borrow will vary based on your income and repayment capacity, you will need to borrow at least Rs.50,000 from IDBI Bank when taking a personal loan from them.

Highlights:

Salaried individuals who hold a corporate salary account with IDBI Bank can apply for this loan.
Applicants need to be over the age of 21 years to avail a personal loan from IDBI Bank.
Loans can be prepaid or foreclosed 6 months after the disbursal of the loan.
Existing borrowers can avail a top-up personal loan.
All borrowers are covered under the complimentary personal accident insurance cover.

Bank	Processing Fee	EMI per Lakh	Pre-Payment Charges
IDBI	At the discretion of the bank	Rs. 2,066	0 - 2% of the outstanding amount	Enquire

Eligibility Criteria

If you earn a comparatively low income, you should first check whether you meet the lender’s minimum income criteria. Keep in mind that banks and financial institutions will only consider your application if your income and repayment ability meet their requirements. You will also need to check if you meet the other eligibility criteria specified by the lender, which are as follows:

Individuals who are employed in private companies, government companies, public sector firms can apply for a loan.
The individual applying for the loan should be between the ages of 21 years and 60 years.
The applicant should have work experience of at least 2 years.
The applicant should have served their current employer for at least 1 year.

Documents Required to Apply for a Personal Loan

Duly-filled application form
Identity proof: You can submit your passport copy, driving licence, Aadhaar card, or voter ID as proof of identity
Proof of residence: You can submit a copy of your passport, Aadhaar card, driving licence, or voter ID card as proof of residence
Bank statements of the last three months
Latest salary slips with Form 16
Proof of age
Recent passport-size photographs
Signature verification proof

Things to Consider When Borrowing a Personal Loan with a Low Salary

Eligibility Criteria: If you earn a comparatively low income, it becomes all the more important for you to check and compare the eligibility criteria of different lenders before you apply for a personal loan. Doing this will reduce the chances of your personal loan application getting rejected.
Interest Rate: The interest rate that is charged by the lender when you borrow a loan affects the cost of your loan. If you are charged a high rate of interest, your total interest outgo over the course of the loan tenure will be more, thus causing you to pay more for the loan. Therefore, it is highly recommended that you compare interest rates charged for different loans before deciding which lender to apply to. The best way to compare personal loan interest rates is either by visiting the official websites of banks and financial institutions or via a third-party financial services website.
Assess the Other Charges: When calculating the total cost of the loan, it is necessary to also take the other charges that are levied by the lender into account.
Check the Payable EMI: Once you borrow personal loan from a lender, you will need to pay the specified EMIs on a monthly basis to the lender. Missing even one EMI payment could affect your credit score and make it difficult for you to apply for a loan in the future. Thus, it is vital that you check the payable EMI using an EMI calculator.
Check Your Credit Score: Before you apply for a personal loan, ensure that you check your credit score. If you want to borrow a loan at a low rate of interest, it is advisable to maintain a credit score over 700.