A personal loan is a financial instrument that helps you cover a variety of substantial expenses, ranging from medical emergencies to higher education and weddings. What’s more, you don’t even need to pledge collateral(s) while availing of personal finance.
However, your monthly income pays a significant role in getting you a loan for personal purposes. But what if you earn a relatively lower salary? You can still qualify for personal finance!
Because the procedure for loan approval is the same for all applicants irrespective of the salary brackets, they fall into. Nonetheless, there are a few things you can do to boost your chances of approval.
Are you planning on applying for a personal loan for low salaried individuals? If so, then follow our three-step approach to boost your approval chances.
#1 Build a healthy credit history
Your credit history reflected through your CIBIL score is a critical deciding factor for loan approval. Lending institutions check this score to gauge a borrower’s creditworthiness. A CIBIL score scale ranges from 300 to 900 points. The higher you go, the better your chances of approval.
Your CIBIL rating is not affected by how much money you make. Instead, it depends on whether you repay your credit card debt and ongoing loan EMIs on time or not. Thus, even individuals with low income but a good CIBIL score anywhere between 700 to 900 can avail of personal finance without difficulty.
#2 Ensure employment stability
Approval of personal loans for low-salary individuals also depends on their employment stability. If you have been with the same employer for over a year, lenders see you as a reliable borrower with a steady source of income.
Make sure you are employed for about a year before applying and have some savings to your name. In a nutshell, job security and sustainability, regardless of your monthly salary, will ensure the lender of your repayment capacity and lead to swift loan approval.
#3 Disclose previous loan history
If you had taken a loan previously and repaid it on time, make sure to disclose this information while availing of personal finance. Further, avoid defaulting on EMIs as it may mess with your ongoing loan repayment and jeopardize future loan application.
Additional Read: How Much Personal Loan Can I Avail On My Salary?
To sum up
If you follow our three-step approach listed above, you’ll significantly boost your chances of getting a personal loan with low income. Remember, all that lenders are trying to avoid is EMI defaults.
Are you looking for a reputed lending institution for personal finance? If yes, then turn to Tata Capital – one of India’s leading finance company. We offer personal finance at attractive personal loan interest rates and flexible repayment tenures. With us, you can apply for a loan for personal purposes online and get a response to your application within a couple of days.
If you wish to calculate your EMI before applying, log on to our website and use our personal loan EMI calculator.
So, don’t wait any longer. Apply today!