Personal Loan

Personal Loans For Low-income Individuals


Any established financial house provides an option for a personal loan, that persons can avail of. The eligibility depends on several factors including disposable income, employment status, etc. that will be discussed in this article in detail.

However, the chief determining factor is the borrower’s capacity to pay the monthly EMIs. Hence, availing of personal loans for low-income may seem to be challenging. But if an individual meets the minimum requirements set by the bank, they can successfully borrow money from any financial establishment. 

This part of the article will discuss, in detail, what makes a person eligible for low salary personal loan

One has to keep in mind a person’s employment status is a top priority when processing a loan. If they have a high salary, the loan amount they can borrow is proportionately higher.

There is a lot of emphasis on their ability to repay the loan. So, even if a person comes from a low-income background, they need to have a stable source of income. They can be government, MNCs, private, or a public sector employee.

Here are some other primary conditions one has to fulfil while applying for a personal loan for low-income earners. 

Eligibility criteria for a Low-Salary Personal Loan

  • The nationality of the borrower should be Indian.
  • Their age must be between 21-60 years.
  • Work experience of one year is necessary (six months of mandatory work at the current organisation).
  • The minimum credit score requirement is between 720-750. Hence, one has to pay off any dues on time to maintain a good credit score.

Can Self-employed People apply for Low-salary Personal Loans?

Self-employed persons can take a personal loan once they meet the bank’s minimum income criteria. The said amount varies from city to city. 

The rest of the requirement is the same as employed people. The bank may also require the person to produce financial documents as proof of steady income. 

What are the documents required to apply for a Low-salary Personal Loan?

The necessary documents to apply for a personal loan for low-income individuals are as follows:

  • Personal loan application form, with the necessary details filled in.
  • Identity and age proof. A person can use their KYC documents (PAN Card, Aadhar Card, Voter ID Card, passport, or driving license.) to prove the same.
  • Address proof. The mentioned KYC documents, plus the electricity/utility bill, can serve as address proof.
  • For employed persons – latest salary slips, along with form 16. And for self-employed persons – their Income Tax returns. Additionally, self-employed persons need to submit their latest bank account statements.
  • Recent passport-sized photographs.
  • Signature proof.

List of Financial Houses that provide Personal Loans for Low-income Individuals:

  • State Bank of India (SBI Express Credit Personal Loan Plan)

This scheme allows persons with an income of fifteen thousand rupees to apply for a personal loan. The maximum loan amount is twenty lakh rupees under this scheme. To apply for this loan, the person has to have a salary account at any State Bank branch. 

Borrowers can only apply for a second loan after a gap of one year. They can borrow only after the repayment of the first loan.

  • HDFC Bank Personal Loan

This scheme allows a person with a net income of twenty-five thousand to apply for a loan. It comes with a lucrative interest rate. The eligible applicants must be at least 21 years of age. They must also have two years of work experience. 

  • IDBI Bank Personal Loan

People with a monthly income of fifteen thousand rupees can avail of this loan. Applicants need to hold a corporate salary account at the said bank. As with other banks, applicants need to be more than 21 years to apply for this loan. Current borrowers can apply for a second top-up plan.

What are the conditions one needs to keep in mind before applying for a Personal Loan for Low-income Persons?

  • Most private banks offer an interest rate of 10.25% and a payment window of 12 to 60 months. Before applying for a loan, a person always needs to consider the interest rate. Whether or not they can afford it.
  • There are several other charges involved, apart from interest. For instance, bank levy a late payment fee, if a person fails to make their payment on time. Usually, the amount is 2 percent per month. Additionally, late charges also affect a person’s credit score
  • Apart from that, banks also charge processing fees. It can range anywhere between 0.25% to 3.03% of the loan amount.

Know more about Low-salary Personal Loans at Piramal Finance

Piramal Capital & Housing Finance Limited offers personal loan plans with zero foreclosure charges. We provide expert advice and assistance to guide every individual through the application process.

Some benefits of applying for personal loans at Piramal include:

  • No charges for repayment or foreclosure.
  • Quick approval of the loan amount.
  • Nominal EMI rates.
  • Flexible repayment time window, from 12 to 60 months.
  • Borrow any amount between one lakh to ten lakh.
  • The company allows clubbing of income so that one can be eligible for a higher loan.

What are the eligibility criteria for a loan application at Piramal Capital & Housing Finance Limited?

Apart from the above-mentioned criteria, there are certain exceptions and additional conditions that a person needs to satisfy before applying for a personal loan

  • Only salaried individuals can apply for a personal loan.
  • Salaried individuals working for the following institutions can apply for the loan. The institutions are as follows: Government Institutions, Private and Public Sectors, Partnership Firms, MNCs, and Proprietorships.
  • The minimum income requirement is twenty-five thousand.

Interested applicants can get in touch with the relationship manager by following this link.

What are the Interest Rates and Other Charges?

The interest rates are 12.99% per annum. As mentioned, there will be no foreclosure or repayment charges. To find out details about the charges associated with the personal loan process, click here.


At Piramal Finance, a person can easily apply online for a personal loan with a salary as low as fifteen thousand rupees:

  • Click on the link.
  • Select “How to Apply?”
  • Follow the link and fill-up the form.
  • Enter the name, mobile, e-mail, and other necessary details.
  • Enter the exact loan amount that is needed.
  • Submit the form, to get in touch with their relationship manager.