Personal Loan

Personal Loans for Salary Less than Rs 20000 – Check Eligibility


The flexibility of a personal loan makes it a great tool for handling life’s challenges. This is an unsecured loan. Hence, you’ll need to show the lender that you’re a good risk and have a history of making timely payments. That’s why your wage and other revenue sources are so important. Read on to find out how to get personal loans for salaried with a salary of 20,000.

Personal Loan for Salaried With a Salary Under 20,000

Nowadays, getting a personal loan with a salary of Rs 20,000 is a simple and fast process. Personal loans for salaried are widely available. Hence, you won’t have to drain your savings or borrow money from loved ones to cover an unexpected expense.

You may be curious about how much you get from your Rs 20,000 income. With an income of Rs 20,000, you have access to a maximum of Rs 3 lakhs in personal loans. Your ability to get a personal loan may also play a role.

What Is the Eligible Loan Amount for a Salary of Less than Rs 20,000?

Can a huge loan be obtained with a small income? You can borrow up to 12 times your annual income from a reputable lender. But, this choice will be affected by several factors.

You can only apply for an instant loan if you meet all the requirements for a personal loan. These include having a solid income and no existing loans or defaults.

Personal loans for salaried are available from 30,000 to 10,00,000 rupees. A low-salary personal loan is available to those who satisfy all the criteria put forth by the lender.

How to Calculate the EMI of Personal Loans for Salaried?

The process of calculating the monthly payment on personal loans for salaried people is pretty straightforward. Just enter the desired loan amount, repayment period, and interest rate. Instant loans for the salaried make it easy to receive the money you need. 

Use the following formula to do the calculation by hand:

EMI= P x R x [(1+R)^N]/ [(1+R)^N-1]


P=Principal amount

R=Rate of interest

N= Tenure of the loan

Personal loan EMI calculators make calculating your monthly payment easy.

Eligibility Criteria To Avail Personal Loans for Salaried With a Less than Rs. 20,000 Salary

Suppose you want to qualify for a low-income personal loan from your lender. In that case, your income must fall within their range. A few examples are as follows:


You must be a citizen of India to apply for and receive personal loans for salaried. The personal loan market in India is closed to anyone who is not a citizen of India.


To apply, your age must fall between 21 and 45.


A full-time job in a public or private institution is mandatory for a low-salary loan. Also, people working under the following can apply:

  • Government Institution
  • Private sector
  • Public sector
  • MNCs or related companies
  • Partnership Firms
  • Proprietorship concern


Maintaining a position for more than three months is preferred.

Work experience

You must have job experience equaling at least 6 months.


Personal loans for salaried require a monthly income of 20,000.

What Are the Documents Required to Get Personal Loans for Salaried?

Personal loans for salaried require the applicant to provide the following information and paperwork:

PAN Card

Identity Proof (any one of the following)

  • Passport
  • Driving License
  • Aadhaar
  • Voter’s Identity Card

Address Proof (any one of the following)

  • Registered Leave and Lease Agreement
  • Passport
  • Driving License
  • Aadhaar Card / Aadhar Acknowledgement
  • Voter’s Identity Card
  • Utility bills like Telephone Bill /Electricity Bill etc. (not more than 3 months old)

Income Proof

  • Latest 3 month’s salary slips
  • Bank statements from the previous three months


  • If clubbing of income is required for higher loan eligibility, co-applicant is mandatory.
  • Only the Spouse can become co-applicant
  • The co-applicants above documents will also be required at the time of loan application.

Personal Loans for Salaried With a Salary Less Than Rs. 20,000 – Features and Benefits

No Collaterals

Due to this characteristic, obtaining a personal loan is very simple.

Flexible Terms

Instalment payments over a longer period can be more financially manageable.

Pre-Approved Loans

The interest rates on pre-approved loans are often lower.

Minimal Documentation

Suppose you have a salary of Less than Rs 20,000. In that case, you can apply for a personal loan by filling out a standard loan application. And by attaching digital copies of your ID proof, billing address, and pay stubs.

Quick Approval and Disbursal

When cash is needed quickly, this quick procedure might be a big help.

What Are the Interest Rates Offered by Personal Loans for Salaried Providers?

Interest rates on personal loans for salaried depend on various factors, but credit score is vital. The lender will impose processing fees if you pay off a loan early. He will impose this besides the interest and foreclosure costs. Here is a rundown of the fees and rates associated with a personal loan in India.

Interest Rate8.30% to 36.00%
Processing FeeUp to 3% of the loan amount
Foreclosure Charges0% to 7%
Loan TenureUp to 5 years
Lowest EMI (per lakh)Rs. 2275

How to Apply for a Personal Loan for Less than Rs 20,000 Salary?

You can apply for a personal loan by going to your bank’s branch. Ensure that you visit the branch with the relevant documents.

You can also apply for a personal loan online by using the internet banking platform of your bank. Or, you can use the mobile application offered by your bank. This will make the process much more convenient and avoid any unnecessary headaches. To finish applying for a loan, upload the photocopy of the necessary documents.


Even if you have a salary below Rs 20,000, you can apply for a personal loan. This guide explained everything about a less than Rs 20,000 salary personal loan.

Before asking for a loan of any kind, you must closely examine your needs and requirements. Learn the rules, and pay your bills on time, to keep your finances in good shape.