Personal Loan

Lending to People with Salaries Under 15,000: Low Salary Personal Loans


Money lending has always been a risky practice. Formal and informal money lenders look at a person’s ability to pay back the loan. This is why people with higher salaries receive loans more easily. The lenders believe in their ability to pay back the borrowed amount. But what if someone’s income is not very high? Does this mean they would never be eligible for loans?

Contrary to popular belief, people with low salaries can secure personal loans. The loans are known as Low Salary Personal Loans. Let’s find out more about them.

What is a Low Salary Personal Loan?

Personal loans are unsecured loans. You can get a loan without keeping collateral. They are easy to apply for and readily available. However, one needs to show a stable source of income as proof.

Proof of income and the salary amount must meet the eligibility criteria set by the lender. However, if your income is quite low, you can still receive a personal loan. In such cases, lenders give low-salary personal loans. These are given to individuals whose monthly income is quite low or is less than INR 10,000.

If an individual’s salary is less than the limit prescribed by the lender, then they can apply for low-income personal loans.

Is there a minimum eligibility criteria for a personal loan?

Yes. The criteria may be different for each lender. Those who wish to apply for a personal loan must read the eligibility criteria carefully.

What is the basis for the minimum eligibility criteria?

When applying for a personal loan, the minimum eligibility criteria include age (21–60 years), work experience of at least one to two years, and having worked at your current company for at least 6 months. In addition, your credit score and monthly salary slips must be shown. For people living in Mumbai and Delhi, the minimum salary must be INR 25,000 per month. For those living in other cities in India, a salary of INR 20,000 per month is good enough to get a personal loan.

Those who are self-employed or freelancers are also required to submit an annual profit statement after tax. This varied across industries and professions.

What are the eligibility criteria to get a low-salary personal loan?

The eligibility criteria are not very demanding. The applicant must be at least 18 years old. There must be proof of a stable source of income. It doesn’t matter if your salary is less. You must be an Indian citizen. You must not be older than 58 years at the time of application.

What are the documents required for a low-salary personal loan?

Like all personal loan applications, low-salary personal loans also require document verification. To apply for a low-salary personal loan, you’ll need to present the listed documents.

  1. Proof of address
  2. Proof of identity
  3. Proof of income

You may show your Aadhar card, voter ID card, PAN card, passport, utility bills, driver’s license, and last three months’ salary slips to the lender while applying for the loan.

What can you do if you don’t have a salary slip?

In such a situation, the applicant can produce bank account statements, Form 16, etc. It is also advised to apply for a personal loan with another individual who has a higher income. Some banks or lenders may also give you the option of an asset-backed loan where you pledge collateral. In case you fail to repay the loan amount, the asset, or collateral, can be used to recover the money.

But keep in mind, the instances of loaning money to people without salary slips is low. If the lender decides to give you a loan based on other criteria, the interest rate will be quite high.

How are interest rates applied to low-salary personal loans?

An important thing to research is the interest charged by a lender. Many lenders have different interest rates. These are also determined by the person’s credit score and income. Other factors that determine the interest rate include the educational qualifications of the applicant, the personal loan amount, the nature of employment, and a list of fixed monthly obligations that would also include the loan amount.

There is a thumb rule that states that if the risk is low, the interest rate will also be low. Therefore, when applying for a low-salary personal loan, ensure that your credit score is good or at least above 600. The ideal credit score is 750–900. You must also ensure that your income is enough to cover all of your fixed monthly obligations.

Is it possible to apply for low-income personal loans online?

Yes. Many lenders and banks disburse low-salary personal loans if the applicant meets the eligibility criteria. But before applying to any of them, study their requirements and terms and conditions carefully.


Giving personal loans to people whose salary is less than the required monthly income amount can seem like a risk. However, if the applicant has a good credit score, a stable source of income, and proof that they won’t default on repayments, the chances of securing low-salary personal loans are high.

Interest rates can vary from lender to lender. Finally, fill out the application forms carefully. If the application is rejected, the chances of your credit score being negatively impacted are high. It may seem daunting, but with the right guidance, securing a low-income personal loan is easy. To learn more about personal loans, visit the Piramal Finance website.