Are you looking for a loan to meet urgent financial requirements? Do banks keep denying the application citing your low salary? If yes, you should try applying for a personal loan. Personal loans are a boon for people who earn a modest salary.
So, even if you make Rs. 15,000 monthly, you are eligible for a personal loan. Many banks and financial institutions grant a loan of up to Rs. 1,50,000 to individuals in this salary range. Moreover, they have simplified the qualifying criteria for the ease of low-income borrowers.
Keep reading as we outline all the essentials, including characteristics, eligibility, factors, and tips for you in this post.
Features of personal loan on Rs. 15,000 Salary
Here are the top characteristics of a personal loan.
- Small cash loans – People belonging to the low-income group can apply for a quick small cash loan. The banks authorise these loans under their rapid loan application system. The loan can range from Rs. 50,000 to Rs. 1,50,000. These loans also come with easy repayment terms and conditions. So, with an income of Rs. 15,000, you can easily repay your modest low-interest instalments within time.
- Collateral-free – Instant personal loans don’t need collateral or a guarantor. These loans are great for generating quick capital in times of urgency. Since the loan amount is also smaller, you can easily manage the instalments from your Rs.15000 salary.
- Security – Banks and other financial institutions offer a secure platform for customers seeking personal loans. In addition, the online application and processing system have enhanced the convenience of the applicants. However, you must upload your details and minimum wage proofs to start the process.
- Paperless documentation – Online KYC verification and salary check-in can save you time considerably. However, you need to submit your bank statements or salary slips in-person to the bank.
Personal loan eligibility for 15,000 income
Please understand that the personal loan eligibility criteria differ from bank to bank. However, here are some common qualifying conditions that all borrowers must fulfil.
- Evidence of your nationality.
- A valid income proof. It can be either your salary slips or bank statements for the past six months.
- Your age proofs. Ideally, an applicant should be in the age group of 21 to 58 years.
- Applicants can be self-employed or business owners as well.
- Applicant, if working, should be employed in the public or private service industry.
- It would help if you also met all the credit score eligibility of the bank. This criterion can also vary from lender to lender. Make sure you enquire about it in advance.
Documents required for a personal loan on 15,000 income
Submitting the right documents can fasten the loan approval process. It also increases your chances of getting the loan approved on the first attempt. So, here is the list of documents that you should have in hand before applying for a personal loan.
- You have to provide your KYC information for personal identification. Besides this, you also need to submit your address proofs. A passport, Driving License, or Aadhar Card can serve the purpose here. Bank statements or pay slips of the last six months to verify your current salary and capacity to repay the personal loan.
- Many leading banks offer risk-free personal loans with a repayment tenure of 1 to 2 years. Get in touch with your bank to know more about it.
Factors that impact personal loan eligibility
Here are the top factors that can influence a borrower’s loan eligibility:
- Monthly income – One of the biggest factors that can make or break the situation is the borrower’s monthly income. Please understand that an income above 15,000 does not alone ensure a loan approval. An individual’s debt-to-income also heavily influences it.
- Credit score – What is a credit score? Well, it is a three-digit code between 300 and 900. It indicates the borrower’s trustworthiness. This score is determined after analysing the previous loan instalments, bill payouts, credit card payments, and other factors. Banks consider a credit score of 700 or more good and reliable.
- Age – Lastly, the applicant’s age also plays a vital role in personal loan approval. Usually, personal loans are granted to borrowers in the age group of 23 to 60 years.
Tips to improve personal loan eligibility
Here are some tips to improve your eligibility for a personal loan:
- Maintain a high credit score – A credit score of 700 and above significantly increases your chances of getting a faster loan approval at lower interest rates. A good credit score also doubles your access to other personal loan offers rolled out by lenders. Make sure you keep paying your debts on time to maintain a good credit score.
- Add a co-applicant – Adding a family member, like parents, children, or spouse, can also help improve your eligibility for a personal loan. However, not all banks offer this facility to their customers. But if you find one, you should try co-borrowing your loan. The banks will consider both applicants’ repayment capacities and credit scores in this system.
- Avoid job changes – Banks also consider your employment history while evaluating your loan eligibility. Frequent job switches can raise a question about your stability and reliability. Such practices indicate career instability. They can pose a credit risk for the banks. Therefore, you should avoid frequent job changes if you want to improve your eligibility for a personal loan.
- Avoid multiple loan applications – Banks sometimes conduct hard inquiries to determine the creditworthiness of personal loan applicants. If you have made multiple credit applications quickly, it can reduce your credit score by a few points. All these things can make you come out as a credit-hungry borrower. Therefore, many banks consider it a solid reason to reject the loan application. So, check all the loan terms and conditions online before placing an enquiry in the bank.
In the nutshell, people making Rs.15,000 monthly are also eligible for a personal loan. It would be best if you connected with a reliable brand like Piramal Finance to get a faster personal loan at the best interest rates. Connect with your nearest branch to know everything about it.