Low-Income Personal Loan
A data from India Human Development Survey suggests that almost 28% of India’s total population belongs to the mid-income group of whom 14% is from the lower and 3% constitutes the upper-middle-income strata. Resultantly, when it comes to managing any financial emergency and fulfilling dreams of travelling abroad and the likes, this particular group of individuals strive hard to make both ends meet.
In such a scenario, a low-income personal loan proves to be beneficial to bear recurring expenses without exhausting one’s savings. Generally, most lenders approve a personal loan only after assessing a few factors of the applicants such as income, credit score, etc. Nonetheless, individuals belonging to the low-income bracket can also borrow this credit following some smart tips.
Ways to avail low-income personal loan online
Due to its collateral-free nature, lenders become more cautious while sanctioning a personal loan. While it seems impossible for individuals with low income to be eligible for such a credit option, they can boost their chances by adopting a few measures.
Following are some of the useful tips that individuals can follow to improve their eligibility for a low-income personal loan.
Maintain a good credit score
Lenders categories a personal loan as a high-risk borrowing option and consequently sanction it after thoroughly assessing the eligibility criteria of applicants. In this regard, the credit score of an individual plays a crucial role as it rightfully denotes his/her creditworthiness.
Generally, lenders approve this credit to applicants with a credit score of 750 or above. On the other hand, those seeking the advance with a low income need to possess a score above 850 to be deemed eligible. However, before choosing a lender, it is advised to call the institution’s personal loan customer care number to gather more information regarding credit score requirements.
Apply for a lower loan amount
Another effective way to avail a low-income personal loan is by applying for a loan amount that is not so high. While most top lenders offer a personal loan of up to Rs.25 lakh, it will be wiser to settle for a lower amount to ascertain instant approval. Financial institutions like Bajaj Finserv allow borrowers to opt for a flexi personal loan that effectively reduces EMIs drastically, aiding low-income earners to lower their repayment liabilities.
The NBFC also extends pre-approved loan offers that simplify the loan application process. Such offers are available for different products like personal loan, business loan and others. You can check your pre-approved offer simply by sharing a few essential credentials like your name and phone number.
Choose a longer tenure
A personal loan generally comes with a flexible tenure of up to 60 months. Individuals with low income can, thus, easily opt for a longer repayment structure to make EMIs affordable. Even so, to be on the safer side borrowers should have a profound idea about how to calculate personal loan EMI and plan their repayments accordingly.
One can also make use of an online loan calculator to know about their exact EMI payable.
Opt for a joint loan
If you have low eligibility to obtain a personal loan, you can consider opting for the advance with a co-applicant with higher eligibility. It will assure a lender that you will be able to repay the borrowed credit within the stipulated time. Moreover, in such cases, to make repayment smoother, you can also negotiate with lenders for a competitive personal loan interest rate.
Apart from following these simple tips, there are a few essential personal loan charges you should keep in mind to repay the loan on time. It further ensures you are capable of handling these additional liabilities of paying EMIs without defaulting.