Getting a personal loan on ₹20,000 salary can appear very difficult, but it is definitely achievable with the proper information and strategy. Most people with low incomes prefer monetary help to meet medical bills, education, home renovation, or unforeseen emergencies. Following is a step-by-step guide on taking a personal loan for ₹20,000 salary and what to keep in mind before applying.
Can You Avail Personal Loan on ₹20,000 Salary?
Yes, most of the banks and NBFCs (Non-Banking Financial Companies) do offer 20000 salary personal loans, although the terms and amount may vary. Although higher salary groups generally tend to get higher amounts with lower interest rates, some financial institutions also offer for low-income earners.
Factors Considered by Lenders
In order to find out if you are eligible for a loan on ₹20,000 salary, lenders consider the following:
Monthly Salary: Though ₹20,000 is a bit low, regular income helps in building confidence.
Employment Stability: Employed at a job for at least 6–12 months makes your prospects brighter.
Credit History: Strong credit history (generally 700 or higher) enhances the chances of getting approval.
Pre-existing EMIs or Loans: Lenders review your debt-income ratio to make sure repayment is possible.
Company Reputation: Getting employed with a well-known or government job improves chances of getting approved.
Expected Loan Amount
Typically, lenders offer personal loan on ₹20,000 salary ranging from ₹30,000 to ₹1.5 lakh. This depends on your overall profile and repayment capacity. For example:-
1. Loan Amount: ₹50,000–₹1,00,000
2. Interest Rate: 11% to 24% per annum
3.Tenure: 6 months to 3 years
Tips to Improve Your Chances
If your salary is ₹20,000, use these strategies to boost your loan eligibility:-
1. Maintain a high credit score
2. Choose a co-applicant or guarantor (with higher income)
3. Apply for a lower loan amount
4.Show alternate sources of income (such as freelancing or rent)
5.Refrain from applying for multiple loans at the same time
Where to Get a ₹20,000 Salary Personal Loan
The following lenders are found to offer personal loans for ₹20,000 salary:
1.EarlySalary (Fibe)
2.MoneyTap
3.CASHe
4.PaySense
5.My Mudra Fincorp Ltd.
6.Some public and private sector banks, such as SBI, HDFC, and ICICI (on case-to-case basis)
These lenders tend to have lenient eligibility factors, particularly for salaried applicants with a continuous source of income.
Conclusion
You can take a personal loan on ₹20,000 salary if you are fulfilling the minimum eligibility criteria and apply in a strategic manner. Compare quotes always, look at the terms, and see that the EMIs fall within your monthly capabilities. Borrow prudently, and only when necessary.
