Can I Get a Personal Loan with Low Income?

Last Updated : July 8, 2020, 1:28 p.m.

Yes, you can borrow a personal loan with a low income. It is not necessary that only high income applicants can borrow a loan, you are eligible to borrow a personal loan with a low income as well. The main objective of a personal loan is to meet the financial needs of the customers, and mostly the low income individuals face these issues. So, banks and NBFCs take care of those customers by providing loans whose income ranges from INR 10,000 to INR 15,000 per month. But which are those lenders who provide personal loans with low income? Read the post and know about them in detail.

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State Bank of India (SBI)

If your monthly salary is INR 15,000, you are eligible for SBI personal loan . While the bank offers a maximum loan of INR 20 lakh to its customers, it will lend you much less since you are earning less. Your eligible loan amount depends on your income, monthly obligations and current EMIs if any. SBI personal loan with low income comes at an attractive rate of interest of 11.00% - 14.00% per annum.

To pay the borrowed amount, SBI provides you a duration of 6 to 72 months which you can choose as per your repayment compatibility. SBI charges a one time processing fee from you which is 1.50% of your loan amount.

Canara Bank

To borrow a personal loan in India with a minimum income of INR 10,000, you can visit the Canara bank which provides 6X of your monthly income or INR 3 lakh whichever is less. You can use the loan amount for any financial need such as marriage, medical emergency, education, travel, etc. Canara Bank charges an interest rate of 11.75% - 16.25% per annum, which is based on your repayment capacity.

You can pay the Canara bank personal loan in 60 months by choosing a suitable tenure for its payment. For the loan processing, Canara Bank charges a one-time fee, which is 0.50% of your borrowing amount.

Axis Bank

Applicants with a monthly income of INR 15,000 can apply for Axis Bank personal loan . And you can borrow a loan amount as per your eligibility for it. The maximum amount of INR 15 lakh is offered by Axis Bank to customers for their financial needs. The bank charges an interest rate of 10.49% - 21.00% per annum on your Axis Bank personal loan which is dependent on your credit history and repayment capacity.

For the loan payment, you have a tenure of 12 to 60 months which you can choose as per your convenience. To process your loan request, you need to pay the fee at1.50%-2.00% of the loan amount.

IDBI Bank

If you are a salaried employee and need a personal loan with low income then go to IDBI Bank which provides you a loan at a monthly salary of INR 15,000. A minimum amount of INR 50,000 can be availed from IDBI Bank where the maximum loan amount is based on your repayment potential and current icome. IDBI Bank personal loan interest rate ranges from 10.50% - 13.25% per annum.

You can get a maximum of 5 years to pay off the IDBI Bank Personal Loan . For the IDBI bank personal loan, you need to pay a one time processing fee which is applicable by the bank.

UCO Bank

You can apply for the UCO Bank personal loan with low income. If your monthly salary is a minimum of INR 10,000, you can apply for the loan.The maximum loan you can borrow is 10X of your monthly salary or INR 10 lakh whichever is less. UCO Bank charges an interest rate of 12.80% per annum based on the user’s income and credit history.

To pay the UCO personal loan, you have a maximum duration of 60 months. For the processing of UCO Bank personal loan, you need to pay the fee at 1% of your loan amount.

Punjab & Sind Bank

Employees of Govt., PSU or Other institutions can apply for Punjab & Sind Bank personal loan with low income. So, even if your salary is INR 15,000, you can get the loan from this bank. You can add a guarantee to your loan if you want to borrow a high loan amount, which can be your spouse or elder son. Punjab & Sind Bank charges an interest rate of 11.15% - 12.75% per annum on personal loans. You can pay the borrowed amount with the interest over a maximum of 60 months.

The bank requires a one time processing fee from the customers which is 1% of your loan amount.

Union Bank of India

Union Bank of India also provides you a personal loan with low income. If your age is 18 years and you have a monthly income of INR 15,000, you are eligible for Union Bank of India personal loan . Employees with a working experience of 2 years can apply for this loan without any hassle. However, if you are residing in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad and Pune, your income should be a minimum of INR 20,000.

Union Bank of India personal loan interest rate ranges from 11.80% - 15.50% per annum, and you can pay the borrowed loan over a maximum of 60 months. The bank needs a one-time fee for the personal loan which is 0.50% of your loan amount.

Documents Required for a Personal Loan

ID Proof:

• Aadhaar Card
• Voter ID Card
• PAN Card
• Passport
• Driving Licence

Income Proof:

• Salary Slip
• Bank Statement
• ITR Report
• Form 16

Address Proof:

• Electricity Bill
• Telephone Bill
• Aadhaar Card
• Passport