How To Get a Personal Loan With a Low Salary?

A financial emergency can happen at any time. You might require a personal loan to achieve multiple life goals, even without financial crises. You can use personal loans for education, marriage, travel, etc. It is up to you what you want to do with your personal loan. Lenders do not need any collateral when you opt for an online personal loan. Personal loans are unsecured and require less paperwork, but banks charge a fixed interest rate. Lenders prefer offering personal loans to people with sufficient salaries because they can pay the EMI on time and will not default. However, checking personal loan rates from different lenders is essential. 

How Can You Get a Personal Loan with a Low Salary?

Differentiating between personal loan rates that different lenders offer is a smart move before applying for an online personal loan. The ways you can use to get a personal loan are as follows:

Submit Alternative Income Proof

In addition to your low-salary job, you can submit alternative income proof if you have other income sources. If you are working on a contract basis or as a freelancer apart from your job providing a low salary, you can show your alternative proof of income. You can submit bank account statements, certificates, income tax returns or form number 16. The documents can help authenticate your alternative income source and ensure lenders that you can repay the loan on time.

Retain a Good Credit Score

In addition to your income source, lenders consider your credit score before approving an application for a personal loan. Lenders consider good credit scores to check your credit ability and whether you have repaid previous debts on time. Whether you are self-employed or terminated from your job, you can retain a good credit score. If you have a high credit score above 750, lenders will feel comfortable lending money to a capable person. A credit score of around 750-900 is ideal for opting for personal loans with a low salary. Such scores will make the lender feel at ease while approving your application for a personal loan and will think that you will approach loan EMIs responsibly. High credit scores aid you in availing of a personal loan to meet your requirements quickly.

Apply with a Co-Applicant

If your salary is low and you think lenders will reject your application for a personal loan, you can apply with a co-applicant. Your co-applicant should be a creditworthy individual with good credit scores and required proof of income documents, which may, in return, boost the lender’s confidence while approving your application for a personal loan. If you apply for a joint online personal loan, you can avail of the loan to meet your requirements. 

Use  Collateral

Another way to get an online personal loan with a low salary is to check whether lenders provide loans using collateral or assets. You can apply for personal loans using gold jewellery, fixed deposit value, mutual fund units, etc., that prove your loan repayment worthiness. Suppose you use your assets as a security, assurance or guarantee that you will repay the loan on time. In that case, lenders may sanction your application for a low-salary loan and offer a personal loan rate.

Simple Eligibility

To opt for a personal loan with a low salary, you can look for a lender who requires you to meet simple eligibility criteria. Lenders with simple eligibility rules can consider your personal loan application. Some lenders offer such loans online with effortless application, less paperwork, and less procedure.

Conclusion

Before you apply for an online personal loan with a low salary, you can read the eligibility criteria, equated monthly instalments, loan processing fees, credit score, etc. The possibility of getting a personal loan with a low salary is low. A few lenders may provide a personal loan with a low income based on whether you match the other eligibility criteria. Still, such lenders can charge an extremely high-interest rate. Hence before applying for personal loans, you can check the eligibility criteria and compare the personal loan rates. Lenders rejecting your application for a personal loan can impact your credit score and reduce your chances of getting a personal loan.