Personal loans have become quite popular recently, with many banks and finance companies offering them at good rates. These loans are attractive because they can be used for various personal needs like medical bills, paying off debts, home improvements, or even buying things for your home or going on a trip.
Personal loans are easy to get for people who have a regular income, whether they are salaried or self-employed. The process is simple, and you don't need to provide any collateral or do a lot of paperwork. getting personal loan for salary 8,000 is easy so continue reading and making notes
But there's a catch – most banks and finance companies set a minimum income requirement, usually around Rs 15,000-20,000 per month. So, if you earn less, like Rs 8,000 a month, it becomes difficult to get a personal loan. Lenders see lower-income borrowers as riskier because these loans don't require any security. If the borrower can't pay back the money, the lenders don't have anything to cover their loss.
Some finance companies, newer online lenders, and a few small banks might still give personal loans to those earning Rs 8,000, but they come with higher interest rates and stricter conditions.
Several factors affect whether you get a personal loan and how much you can get. These include your credit score, how much debt you already have compared to your income, your job history for the last one to three years, and your bank statements for three to six months.
If you want a personal loan and earn Rs 8,000 a month, having a good credit score, low existing debt, a stable job history, and healthy bank statements can increase your chances.
Credit score is crucial; most lenders want a score of 750 or above. The debt-to-income ratio, which is the percentage of your income used for repayments, is also important. Lenders usually want this ratio to be no more than 40%-50% of your monthly salary.
Lenders usually approve personal loans up to 10-20 times your monthly income, but this is more applicable to those earning more than Rs 15,000-20,000. If you earn Rs 8,000, it's hard to get a large personal loan. Even if approved, the amount would be much lower and depends on other factors mentioned earlier.
In summary, big lenders consider those earning Rs 8,000 as high-risk, making it harder for them to get personal loans. Some smaller finance companies, online lenders, and small banks may still provide loans, but at higher interest rates and with stricter conditions.
Before applying for a loan, it's important to research the eligibility criteria, interest rates, and repayment terms of different lenders. Stick to well-known and reputable lenders, and avoid those not regulated by the Reserve Bank of India. One reputable lender is IIFL Finance, based in Mumbai, offering personal loans from Rs 5,000 to Rs 5 lakh with competitive rates and flexible terms.