A monthly salary of Rs.15,000 comes under the high-risk category for lenders. Let us learn more about how a person with a monthly income of Rs.15,000 can avail of an instant personal loan.
Having an impressive share of more than 25 percent in the total credit portfolio of the banking domain, personal loans are by far one of the most sought-after ways of procuring funds in India. Banks and other financial institutions provide simple personal loans to people with a decent credit payment track record and a salary of at least Rs.15,000.
That leaves us with a vital question: How can lenders provide loans to people under this category? What are such people supposed to do if they require funds during adversity?
Some lenders provide personal loans to those with a monthly income on the lower side. Since no collateral is needed for loan availing, lenders view the low-income category as risky and provide them instant loans with a high interest rate.
A prompt assessment of the sites of various banks and NBFCs will display the results for approximate interest rates, duration, and loan EMIs for people with a salary of around Rs.15,000. While the salary earned by a person can be a primary element for deciding the eligibility criteria for getting personal loans, lenders also tend to give importance to having a robust credit score.
How much instant loan can one opt for?
Banks and other NBFCs may provide loans of up to Rs.1,50,000 for people having an income of less than Rs.15,000 each month. Some lenders might provide a higher amount according to some vital factors, along with other income sources such as rent and so on. Lenders estimate this loan eligibility based on the borrower’s income and repayment capacity; also, the customer must have a credit score of 750 or more.
Rate of interest:
Varying as per the borrower’s profile and history, lenders might charge around 11 to 35 percent in interest rate. Lenders give out personal loans at a higher interest rate to those in the high-risk category.
Other fees:
Alongside interest, a borrower has also incurred a processing fee of the overall loan amount. Additionally, banks levy charges for documentation and amortization schedules. The lenders can also levy late interest and penal fees, compounded monthly.
Also, banks might levy a fee if a borrower wishes to modify the repayment mode at a future date or even swap the post-dated cheques instead of a new one. The user may also be charged a fee for foreclosing.
To sum up, a person having an income of around Rs.15,000 comes under the high-risk category for top banks, and thus, they tend to be wary while lending to this segment. However, one can apply at an NBFC or other small banks that also provide lending services for this segment.
Conclusion:
Hence, a person with a low income must maintain a good credit score. He should also make it a point to check out lenders’ interest rates and eligibility criteria and then initiate the loan application procedure.
Personal loans lead to a debt or obligation on the borrower’s side to repay the loan amount within the duration. Thus, it becomes important that the borrower has multiple sources to repay the EMIs.