Almost 88% of the monthly income of an average Indian working individual goes toward paying rent, familial and commute expenses, a survey revealed recently. The remaining 12% is earmarked as savings. Thus, most employed individuals have little or no room to finance sudden considerable expenses.

• 57% of the average Indian workforce earn less than Rs.10,000 a month.
• The median income for an employee in the country is around Rs.16,000.

Under such dire circumstances, individuals have to rely on financial assistance to make ends meet. A low salary Personal Loan EMI Calculator Online is often the best solution when facing sudden financial requirements.

What are low salary loans?

As the name suggests, a low salary personal loan refers to an unsecured loan, specifically available to individuals belonging to the low-income group. Since such applicants have little or no savings to fall back on during emergencies, these loans can be of significant assistance.

With no collateral requirement, one can simply use an instant loan app to avail of these specialized forms of credit. Listed below are some of the distinguishing factors of these loans – 

1. As per personal loan eligibility norms, an applicant must earn a specific amount of money or more in a month to qualify for said credit. In the case of a low salary loan, this required amount is minimal. One can avail of such loans only when his/her income is low.
2. Another characteristic of such loans is that they are processed and disbursed in a matter of hours. Quick loans like these can help overcome sudden financial challenges, such as medical emergencies.
3. Lastly, low salary personal loans are affordable with minimal interest charges. This further eases repayment hassle for borrowers, lowering their monthly liabilities. Still, an applicant must work on the factors affecting personal loan interest rates to find the best deals.

An important aspect to remember is that an applicant’s income determines the maximum principal amount he/she can avail of as an unsecured advance. Reputed lenders offer up to Rs.5 lakh with minimal income requirements.

Nonetheless, even with relaxed income parameters, a potential low salary personal loan borrower must consider certain factors. Doing so would optimize the loan availing process.

Getting the best low salary loan

If one is looking to secure the best terms on his/her personal loan, here are some things to follow – 

• Fulfill all eligibility norms

Financial lenders set several eligibility criteria that an applicant must follow when availing low salary personal credits. Income is one of these parameters. However, more important is the individual credit score. A scale to measure creditworthiness, one’s CIBIL can range between 300 and 900 points. A high credit score can help borrowers get better terms on their personal loans.

Moreover, an individual looking for an instant personal loan must also meet the age criteria. For most lenders, the age bracket for a personal loan ranges between 20 and 60 years. Nevertheless, checking these parameters beforehand is crucial to enjoying a seamless loan application process.

• Arrange all listed documents

Documentation is an integral part of any loan application, more so for unsecured loans. When looking for a low salary personal loan, one must arrange the necessary pieces of paperwork before submitting his/her application. Keep in mind that the exact requirements can differ from one lender to another.

Individuals can check online using their financier’s website or utilise their loan app to know which documents are necessary. In most cases, lenders will ask for KYC, address proof, and photographs when processing loan requests. 

• Utilize a loan calculator to check EMIs

Opting for a loan without understanding exact monthly liabilities from it is one of the most common mistakes. Doing so can lead to extreme financial strain during the loan’s repayment tenor. Therefore, the best way to avoid such issues is to utilize the Lowest Rate Personal Loan EMI calculator online to compute EMIs payable and the total interest cost for a personal loan.

Using these tools is simple and requires one to input his/her loan principal, interest rate, and tenor. For instance, if one’s loan amount is Rs.3 lakh, the interest rate charged is 13%, and the tenor is 4 years, a quick visit to the calculator would reveal how much the borrower would need to pay as EMI.

In this case, his EMI would be Rs.8,048. By the end of his tenor, he would bear Rs.86,318 as interest cost on this credit.

• Look for customised offers

Individuals with a high CIBIL score and decent credit history should look for pre-approved offers. Lenders like Bajaj Finserv provide such offers to ease and streamline the lending process. Available on products like business loans and personal loans, individuals can check their pre-approved offer by submitting their name and contact information.

A low salary personal loan can come to one’s aid during moments of severe financial plight. Following the tips mentioned above will ensure speedy and hassle-free approval of such loan requests.