Salary Below 20k But Want an Instant Loan? Here's How You Can Secure One
aking a loan is easy enough in today’s digital world. But every loan approval comes through based on your salaried income. If you have a relatively lower salary, say in the range of Rs 15,000 to Rs 20,000, you might think that you will not get a personal loan. But the good news is that you can still get one, provided you follow a few steps before applying for the loan. Also, apply to an instant loan app instead of a bank. The following points make it clear why.
* Check your credit score.
Lenders always start assessing loan applications by checking the applicant’s credit score first. Banks and most NBFCs check the CIBIL credit score, while lending apps check the CIBIL score as well as use their own AI-backed algorithms for further insights. If your credit score is low, then no amount of applying to any lender or pleading to be approved will work. Lenders are quite strict on this front, since personal loans for salaried individuals are unsecured products. If the applicant has a history of late or no repayments, lenders are unwilling to chance approving loans for them and potentially running into a legal quagmire later. If necessary, try improving your credit score before making the application. You can check your credit score online on the CIBIL or Equifax.
* Try applying to an instant loan app.
Since lending apps have a more intuitive approach towards checking a person’s financial behaviour, the chances of getting approved for a personal loan despite a low salary are higher with the app. Where a leading bank would take one look at your salary and reject the application without further checks, a lending app might give you a better chance if your credit score is good and your financial behaviour thus far has been responsible.
* Download a loan app on your smartphone.
Get a sense of the best loan app that has flexible repayment terms, competitive interest rates and a super quick approval process. Reviews and ratings on the Google Play Store will give you an idea of which loan apps are popular among customers and why. Take some time out to read these reviews in detail. Also check the preferred app’s current version – if it has undergone multiple rounds of Beta testing, it means the app developers are abreast of security protocols and offer regular bug fixes, thus using the app should be hassle-free.
* Check your loan eligibility.
Once you install the instant loan app, you can set it up and start using it. Since your salary is on the lower scale, you might wonder how much loan amount you can get. Please note that the loan amount is approved subject to your eligibility. The eligibility is considered on the basis of your age, income, credit score, repayment history, etc. Thus, if your eligibility is Rs 2,00,000, you cannot get a loan amount higher than this. Even if your need is greater than the loan eligibility amount, that is the maximum amount of money the loan app can offer you. So before you proceed with the loan application, start by checking your eligibility on the app’s calculators.
* Get your documents in order.
After you know how much loan amount you can get, you can proceed to apply for it. Do a last check of interest rates, EMI payable and other terms and conditions. Now check the documents list and get your documents in order. You must self-attest them before taking photographs and uploading the set on the app.
* Await approval.
The app will now check your credit score and documents. If everything is found correct, the approval should come through in a few hours, and the loan will be disbursed immediately thereafter.
Conclusion
Though it is true that you may get a higher loan amount with a higher salary, it is not impossible for a lower salary bracket to avail of a personal loan, especially from a good loan app.