How to Avail a Personal Loan with Low Salary?

Last Updated : June 26, 2025, 6:25 p.m.

Searching for a personal loan but earning a limited income? Don’t worry—many lenders offer personal loans even to individuals with lower salaries, without requiring any collateral. While most banks set a minimum monthly income requirement of ₹15,000–₹20,000, those earning below ₹15,000 may still qualify. In this post, we’ll guide you on how and where to get a personal loan with a low salary.

Personal Loan Option from Banks and NBFCs

Certain lenders offer personal loans to individuals with a modest income. The table below highlights some of these lenders.

Note – Some of these banks may require you to arrange a guarantor who is already their customer.

The Next Option is Loan Against Securities

If you don’t meet the minimum income criteria for an unsecured personal loan, a loan against securities is a smart alternative. Instead of relying on your income, lenders assess the value of financial assets you pledge, such as mutual funds, shares, life insurance policies, or bank/postal deposits.

Since the loan is secured, lenders are more willing to offer financing, typically approving 80% to 90% of the asset’s value. This not only improves your chances of approval but may also result in lower interest rates compared to unsecured loans. Plus, the ownership of your assets remains intact while they serve as collateral.

This option is ideal for:

• Unemployed individuals
• Freelancers without stable income proof
• Salaried individuals with income below ₹10,000 per month.

How Much Personal Loan Can You Get?

Lenders assess personal loan eligibility by evaluating your income, credit score, and repayment capacity. A crucial metric is the EMI-to-NMI (Net Monthly Income) ratio, which reflects how much of your income goes toward loan repayment.

Most lenders prefer that EMIs stay within 50% to 60% of your NMI, but in some cases, loans may be sanctioned subject to an EMI/NMI ratio of up to 65% or 24 times your NMI—whichever is lower.

For example , if your Net Monthly Income (NMI) is ₹30,000, the maximum loan you may be eligible for is usually limited to ₹7.2 lakh (30,000 × 24), as long as the EMI stays within 65% of your monthly income.

Estimate Your EMI with a Personal Loan Calculator

Using a Personal Loan EMI Calculator helps you quickly estimate your monthly installment. Since it's available online, you can easily calculate your EMI by entering the loan amount, interest rate, and tenure. The tool instantly shows your monthly EMI and total interest payable over the loan period.

Required Documents for Availing a Personal Loan on a Low Income

When applying for a personal loan, you’ll need to provide the following documents:

• Proof of Identity – PAN Card, Aadhaar Card, Voter ID, Driving License, or Passport
• Proof of Address – Aadhaar Card, Voter ID, Driving License, Passport, Electricity Bill, or Telephone Bill
• Proof of Income – Recent 2–3 months’ salary slips, Form 16, and bank statements from the last 3–6 months
• Recent passport-sized photographs
• Completed and signed the application form.

Note: The above list of documents is general and may vary depending on the lender’s specific requirements.

Eligibility Criteria for Personal Loans For a Low Salary

While criteria may vary slightly from lender to lender, the following are the general requirements for salaried individuals with modest income:

These conditions help lenders assess income stability and repayment ability, even when the salary is on the lower side.

Steps to Apply for a Personal Loan on a Low Income

You can apply for a personal loan either online through the lender’s website or by visiting their nearest branch.

In both methods, you'll need to accurately fill in your personal and employment details in the application form. Once submitted, the lender will review your information and documents. The loan will be approved and disbursed only after successful verification of your profile and eligibility.

Conclusion

Getting a personal loan on a low salary may seem difficult, but it's certainly possible with the right approach. By maintaining a good credit score , choosing the right lender, applying for a lower loan amount, or opting for a co-applicant or collateral, you can improve your chances of approval. Exploring government schemes, secured loan options, or loans against savings and investments can also be smart alternatives. With careful planning and the right documentation, even individuals with modest incomes can access the funds they need.