Financial needs can arise at any time, whether it’s an unexpected medical expense, a home repair, or just getting through the month. Many believe that a low salary might make it difficult to secure a loan. But is it really? The good news is that if you earn less than ₹10,000 per month, you can still apply for a personal loan!
In this blog, we’ll explore how individuals with a personal loan salary less than 10,000 can avail financial support, the eligibility criteria, and the best ways to improve approval chances.
Can You Get a Personal Loan with a Salary Less Than ₹10,000?
Yes, it is possible to get it but the options are limited. Banks and NBFCs (Non-Banking Financial Companies) typically set minimum income requirements, but there are lenders who cater to low-income individuals.
Here’s how:
- Microfinance and Small Loans – Some lenders offer personal loans designed for low-income groups.
- NBFCs & Digital Lenders – Unlike traditional banks, many NBFCs have flexible eligibility criteria.
- Secured Loans – Offering collateral can increase your chances of approval.
- Co-applicant or Guarantor – Adding a financially strong co-applicant can improve eligibility.
Eligibility Criteria for Personal Loan
Different lenders have different requirements, but here’s a general overview:
| Eligibility Factor | Requirement |
| Minimum Salary | ₹7,000 – ₹10,000 per month |
| Employment Type | Salaried or Self-Employed |
| Credit Score | 600+ (lower scores may require collateral) |
| Age | 21 – 60 years |
| Work Experience | At least 6 months (for salaried individuals) |
| Location | Urban, semi-urban, and rural areas covered |
While a personal loan salary less than 10,000 comes with challenges, selecting the right lender can improve approval chances.
Best Loan Options for Low-Salary Individuals
If your monthly income is below ₹10,000, these are some of the best loan options available in India:
Digital Lending Platforms & NBFCs
Fintech companies and NBFCs are a great alternative to traditional banks. These lenders have simpler application processes, faster approvals, and often lower income requirements.
Microfinance Loans
Microfinance institutions (MFIs) cater specifically to low-income individuals. These loans are designed for small business owners, self-employed individuals, and low-salary earners.
Gold Loans
A gold loan is a secured loan where you pledge your gold as collateral. Since it is backed by an asset, lenders are more flexible with income requirements.
Personal Loans from Cooperatives & Small Banks
Regional rural banks, cooperative banks, and small finance banks provide personal loans to individuals with low incomes.
Government Schemes
The Indian government offers various schemes for financial assistance, such as:
- Mudra Loan – Ideal for small businesses and self-employed individuals.
- PMEGP (Prime Minister’s Employment Generation Programme) – Designed for entrepreneurs and startups.
How to Improve Your Chances of Getting a Loan?
- Maintain a Good Credit Score – A score above 650 increases approval chances.
- Opt for a Secured Loan – Pledging collateral like gold, FD, or property improves eligibility.
- Choose a Longer Tenure – Lower EMIs make repayment easier for low-income earners.
- Apply with a Co-Applicant – A family member with a higher income can improve approval odds.
- Borrow Responsibly – Don’t take excessive loans beyond your repayment capacity.
Loan Amount & Interest Rates: What to Expect?
| Lender Type | Loan Amount | Interest Rate | Tenure |
| Digital Lenders | ₹5,000 – ₹1,00,000 | 18% – 36% | 3 – 24 months |
| NBFCs | ₹10,000 – ₹2,00,000 | 14% – 30% | 6 – 36 months |
| Microfinance | ₹10,000 – ₹50,000 | 22% – 28% | 12 – 36 months |
| Gold Loans | ₹5,000 – ₹5,00,000 | 9% – 15% | 3 – 24 months |
Interest rates are typically higher for unsecured loans. Opting for a secured loan can significantly lower the interest rate.
Documents Required for Loan Application
Most lenders require the following documents
- Identity Proof – Aadhaar Card, PAN Card, Voter ID
- Address Proof – Utility Bill, Aadhaar Card, Passport
- Income Proof – Salary Slips, Bank Statements
- Employment Proof – Offer Letter, Work ID (for salaried employees)
- Collateral Documents – If applying for a secured loan
Having these documents ready ensures a smoother and faster approval process.
Conclusion
Getting a personal loan for a salary less than 10,000 is challenging but not impossible. By choosing the right lender, maintaining a good credit history, and considering secured loan options, you can access the financial support you need.
Many NBFCs and digital lenders offer loans with flexible eligibility criteria, considering factors like alternative income sources, guarantors, or collateral. Additionally, improving your credit score and reducing existing debt can increase your chances of approval.
Explore different lenders, compare interest rates, and apply for a loan that suits your financial needs without burdening your monthly budget. Financial freedom is within reach—start your loan journey today!
FAQs
Can I get a personal loan if my salary is below ₹10,000?
Yes, you can apply for it through digital lenders, NBFCs, microfinance, or secured loan options.
What is the minimum salary required for a personal loan in India?
Most banks require at least ₹15,000 – ₹20,000 per month, but NBFCs and fintech lenders offer loans to those earning ₹7,000 – ₹10,000.
Will my credit score affect my loan approval?
Yes, a higher credit score improves your chances. If your score is low, consider applying with a guarantor or opting for a secured loan.
Can I get a personal loan without a salary slip?
Yes, some lenders allow alternative income proof like bank statements or income tax returns.
What is the best loan option for low-income earners?
Gold loans, microfinance loans, and fintech personal loans are ideal for individuals with low salary
