Securing a Personal Loan with a Low Salary/Income: A Guide

Apr 24, 2024
 |  1 min read

Getting a personal loan may seem like a farfetched or impossible dream when your income is meagre. Your income is essential, without any doubt, but it is certainly not the only factor. Lenders look at other factors, too.

But why consider securing a personal loan with a low salary? You may need a loan for emergency expenses like medical treatment, money for education, or wedding purposes. Whatever the reason, borrowing responsibly and paying on time is crucial. Here is a detailed guide on navigating personal loans with a low wage.

What Factors to Consider When Availing a Personal Loan with a Low Income?

Before applying for a personal loan with a low income, it is essential to stay prepared in certain areas to improve your chances of getting approval. If you are wondering what factors to consider when availing of a personal loan with a low income, these are the few pointers you should be looking into:

  • Check Interest Rates

The interest rate the lender charges affects the total cost of your low-income personal loan. Overlooking this factor could lead you to pay extra due to high-interest rates.

  • Maintain your Credit Score

Your credit score plays a vital role during the loan approval process. So, check your credit score before applying for a personal loan with a low income. Your credit score should be above 750 for an easy approval process and low interest rates.

  • Assess your EMI Repayment

Assess your monthly income before applying for a personal loan. You can do this easily by using an online EMI calculator. Planning your EMIs using the calculator will help you manage your repayment schedule more effectively. Thus this can prevent payment defaults, which could otherwise lower your credit score.

  • Compare the Processing Charge

Check processing charges from different lenders. This helps you spend less overall and know your repayment amount.

What are the Options for Personal Loans with a Low Salary?

Having a low salary doesn't necessarily mean you are out of options. In case you are wondering what are the options for personal loans with a low salary, go through this detailed list:

  • Traditional Banks: Normal financial institutions like banks offer personal loans. However, these organisations can provide competitive interest rates but are generally more strict when considering eligibility requirements.
  • Online Lenders: Online lenders can approve loans faster, and these institutions offer them even to those with low credit scores. However, they might charge higher interest rates than traditional banks.
  • Credit Unions: Credit unions understand their members' needs better. They offer lower interest rates and more straightforward eligibility requirements than other lenders.
  • Peer-to-Peer (P2P) Lending: Websites that connect borrowers with lenders directly may offer lower interest rates. However, there are risks involved. Research and understand how it works before using any peer-to-peer (P2P) lending platform.

How can you Qualify for a Personal Loan with a Low Salary?

With so many eligibility criteria for personal loans, you are expected to wonder, “How can you qualify for a personal loan with a low salary.” Criteria or qualifications for a personal loan may differ from those of lenders. However, there are a few general criteria that you must fulfil, which include:

  • An Indian citizen
  • Even if the income is low, having a regular source of income is mandatory.
  • Your age should be at least 18 years.

Some of the documents required when applying for an instant loan for a low salary:

  • Complete application form filled with passport-sized photographs
  • KYC documents
  • Identity proof like Aadhaar card/ Voter’s ID, Utility Bills
  • Income proof
  • Other documents, as required by the bank

How to Apply for a Personal Loan with a Low Salary?

With many alternatives to traditional bank loans, such as online or peer-to-peer lending platforms, borrowing money for loans has become relatively more straightforward. Gone are the days when you have to go through complicated procedures and wait for weeks to obtain a personal loan. Now with these three easy steps, you can quickly get a personal loan with a low salary:

  • Check Eligibility and Pick an Appropriate Personal Loan Plan: Lending platforms mostly ask for a few details from borrowers to create a line of credit. If you are wondering what a credit line is, it refers to the total amount of your loan. Once the amount is ready, borrowers can choose the loan amount, duration, and EMIs.
  • Upload KYC Documents: Borrowers need to upload certain required documents, including their Voter ID card, PAN card, and other documents that the app asks for. This will take them one step closer to loan approval disbursement.
  • Get Your Money: The loan amount the borrower has requested will be credited to their bank account within minutes.


Securing a personal loan with a low salary is challenging, but it is not something impossible. You can improve your chances by comparing options, maintaining a good credit score, and meeting eligibility criteria. Consider platforms like mPokket, which offer quick loans online to help you bridge financial gaps effectively. They can help with instant loans for low-salaried people as well.

Gaurav Jalan

Gaurav Jalan is the Founder and CEO of mPokket, a digital lending platform serving underserved Indian youth. He leverages technology and experience to deliver cost-effective credit to marginalized populations. In his role, he provides strategic direction and oversees execution to fulfill mPokket's mission.