4 Tips on How Low-Income Individuals Can Get a Personal Loan – DookyWeb

4 Tips on How Low-Income Individuals Can Get a Personal Loan

Loans have become widely accessible to the needs of customers, which is a great boon for those who earn a low salary. Low-income individuals are frequently in need of financial assistance to help manage their expenses, especially in an expensive city like Bangalore.

Banks usually have strict eligibility criteria for loans, which can make loans out of reach for low-income earners. The good news is that even if you aren’t earning a high salary, you can still get an instant loan in Bangalore from digital lenders as they have wider eligibility criteria.

Here are some of the ways you can still get a personal loan in Bangalore if you earn a low salary.

  • Secured loan

Taking a secured loan is one of the easiest ways to get access to the funds you need for your situation if you have a low salary. Secured loans require the borrower to pledge their assets as collateral against their loan.

As the lender has the security of your assets until the loan is repaid, they are generally easy to avail and have lower interest rates. However, the main drawback is that the borrower should have sufficient collateral to pledge in order to avail of the loan.

  • Check the eligibility criteria

In case you do not have collateral to opt for a secured loan (or do not want to pledge your collateral for a loan), then there is always the option of digital lenders such as Upwards, which provides loans from Rs. 20,000 to Rs. 2 lakh to salaried employees earning a minimum of Rs. 15,000 per month.

Digital lenders have far wider eligibility criteria than that of bank loans which require numerous KYC proofs and a higher salary in order to qualify. Opting for a digital lender is a far easier option since they also have faster approval and disbursal time. Whichever lender you apply to, be sure that you check the eligibility criteria thoroughly in order to increase your chances of approval for your instant personal loan in Bangalore.

  • Build your credit slowly

One of the ways you can still get a loan on a low income is if you have a strong credit score. In India, CIBIL is the most commonly used credit score, and having a score of 750 and above is considered excellent.

While you can still get loans on a lower credit score, there is a higher chance of rejection. Also, the interest rates and repayment terms tend to be less favorable for those with low CIBIL scores.

If you are planning to take a loan but have a low CIBIL score or no prior credit history, one of the best things you can do is demonstrate your creditworthiness. You can do this by applying for a credit card, spending less than 30% of the entire limit every month, and paying off the amount in full before the due date.

This will increase your credit score and prove to lenders that you are a responsible and reliable borrower who doesn’t default on repayment.

  • Keep your expenses and debts low

If you earn a low salary, try and keep any existing debts very minimal or non-existent. Lenders assess a person’s repayment capacity in order to determine whether the borrower can truly afford another financial burden.

If you have too many outgoing debts that are beyond your means and apply for a new loan, lenders are likely to reject your application since you do not have the financial capacity for an additional burden.

If you are in such a situation, clear off all your outstanding debts before you apply for a new loan. Another option is to apply for a debt consolidation loan, which helps to streamline your entire outstanding amount into one single loan with a lower interest rate.


Nowadays, lenders are catering to the needs of low-income individuals who require credit but do not meet the high eligibility criteria of banks. To increase your chances of getting your personal loan application approved, try to increase your credit score and be responsible with your finances. Get your instant personal loan in Bangalore today by applying online.