How to Get a Personal Loan with a Salary Below Rs.15,000
Are you searching for a suitable personal loan option for a salary of Rs.15,000 but facing difficulties finding one? If you’ve received rejections due to reasons such as “not eligible,” don’t worry! Your borrowing journey is far from over. You can take proactive steps to improve your loan eligibility and increase your chances of getting approved for a personal loan with instant approval.
The calculation personal loan eligibility follows a systematic process. By taking the necessary steps, you can not only secure the credit you need but also increase your eligible credit limit. Let’s explore the details.
Factors that affect your Loan Eligibility
- Credit health: Your credit health is determined by factors such as your income, past loans, repayment history, debt-to-income ratio, tax or other financial liabilities, etc. When these factors are positive, your eligibility improves. Being a responsible borrower and paying back loans on time can increase your chances of loan approval.
- Age: In India, only adults can apply for loans, and every lender has different eligibility criteria. If you’re 60 or above, getting a personal loan may be difficult, but having a regular income and excellent credit score can maintain your eligibility
- Employment status: Stable employment means a regular income, which ensures on-time repayment and increases your eligibility. Since employment status also forms a part of your credit score, eligibility improves with it.
- Job profile and experience: The nature and type of your job are key factors in determining your loan qualification. A permanent job, the sector of work, and years of experience all count. The more years you have been working, the more it favors your credit qualification, indicating financial security and sincerity.
- Debt-to-income ratio: This is the ratio between your income and financial liabilities. The lower your DTI ratio, the higher amount of loan you can get. With a higher income in comparison to lower payable dues, you can increase your loan eligibility.”
How is your Personal Loan Eligibility Calculated?
When applying for a personal loan, your eligibility is calculated based on several factors. Two common scenarios are when you have an ongoing loan and when you have no financial liabilities.
Case 1: Ongoing Loan
If you have an ongoing loan, the lender will consider your current monthly obligation when calculating your personal loan eligibility. Your eligibility is measured based on the debt-to-income (DTI) ratio. A DTI ratio lower than 50% is considered ideal. For example, if your monthly salary is Rs. 15,000, your total loan EMIs should not exceed 40% of your income, which is Rs. 6,000. With this, you can manage your monthly expenses along with your loan instalments. For a five-year tenure, your loan eligibility can be up to Rs. 3,50,000 to Rs. 4,00,000 in total.
Case 2: No Financial Liabilities
When you have no financial liabilities, your total loan eligibility is calculated on a net income basis. For a tenure of five years, you can get from 27 to 30 times your salary as a loan. For example, with a monthly salary of Rs. 15,000, you can get a loan of up to Rs. 4,50,000 for five years. The tenure can vary from lender to lender. This percentage is considered ideal because timely repayment becomes easy and default-free.
Before applying for a loan, you can check your loan eligibility on your own and then fill in the required loan amount. This enhances the chances of loan approval. In case you need more money, you can take a few small steps to improve your credit limit.
Top 5 ways to improve your loan eligibility
- A high credit score: Your credit score is directly proportional to your loan eligibility. A credit score above 750 is considered decent and you can easily get a loan. For better eligibility, you can check out your credit report to debug the problems if any. Default-free credit history, regular income. Low DTI ratio and a versatile credit mix build a high credit score.
- Up-to-date documents: Documentation is the way the lender gets to know you as a potential borrower. All the information your give is cross-checked by this. Up-to-date documents and in full of the requirement of the lender means an instant loan. With this, the banks or NBFCs can exactly check how much you can manage as an added financial liability.
- Income from various heads: If are looking for a personal loan for a salary of Rs.15,000 and need a higher amount, you can use this method. Income from various sources collectively will increase your eligible credit limit as it makes sure you are capable of its repayment.
- Limited financial liabilities: Having a credit mix which means various types of loans at a time is good for making your credit report. But, when there is a constraint of income this doesn’t go well. Just one ongoing loan means limited monetary obligations and thus default free repayment. Having just one loan at a time, repaying in full and then applying for another loan is the right way to increase your eligibility.
FlexSalary offers a renewable credit limit of up to Rs. 2,00,000, which remains approved on your account for a specified period. With this credit line, you can withdraw funds as and when required, and interest is charged only on the amount withdrawn. The unused portion of the approved credit limit incurs no interest, allowing you to reuse the same credit line without having to apply for a new loan. Once you’ve fully repaid your balance, you can revise your credit limit. Interest on the credit line only applies to the withdrawn amount, and you can pay off your dues in variable instalments.
If you think that your salary is not good enough to secure a loan, you might be mistaken. Various lenders offer relaxed eligibility criteria and proportional credit limits, and you can check online for personal loan options and list down a few lenders. After conducting thorough research and selecting a suitable lender, you can apply for the desired loan amount and receive instant approval.