Month: January 2024

Taking a personal loan with a salary of ₹20,000 might send you through a whirlwind of questions.

“Can I repay the loan on time?”
“Will I even qualify for the loan?”
“Are the EMI payments going to be more than my salary?”
“Do banks even offer personal loans for people earning ₹20,000?”

Well, first, take a deep breath and sit back while we address every concern.

To begin with, the latest Periodic Labour Force Survey 2023 reveals that an average Indian earns around ₹20,000. So, yes, banks do offer personal loans to one of the largest income demographics.

Now, keep reading the blog as we answer the rest of your questions.

But, if we were to summarise the blog in one line, we would say- yes, you can get a personal loan from INR 20,000 to INR 10,00,000 with manageable EMIs and flexible repayment tenure.

How Much Personal Loan Can you Get on 20,000 Salary?

There are a few different ways of calculating the personal loan amount based only on your salary.

Multiplier Method

Banks use a predetermined multiplier to multiply the applicant’s net wage to find the personal loan amount. Usually, the multiplier number lies between 10 and 24. However, it varies from bank to bank. You can even negotiate for a higher multiplier if you demonstrate financial stability or get a co-signer.

Now, let’s see an example of how a multiplier works:

Let’s assume that the bank has a loan multiplier of 15.

Therefore, the maximum loan amount you can borrow= ₹20,000 x 15= ₹3,00,000

EMI/NMI ratio

Lenders find the ratio of monthly EMI and net monthly income before finalizing the loan amount. Remember, the monthly EMI calculation also includes the installment amount of the proposed personal loan.

A ratio of 50 or below makes you eligible for the loan. In other words, you should not be paying more than half of your income as EMI. Now, let’s get to the calculation.

Say, you’re ready to pay ₹4000 as EMI.

Then, the ratio= 4000/20000= 0.2 or 20%.

The loan amount becomes = (4000/0.2) x 100 = ₹20,00,000

Note: Just because you can doesn’t mean you should. Even though you are eligible for a large amount, it is advisable to take the loan for the amount you need and not more.

Again, the loan amount varies depending on other factors as well.

Calculate EMI of a Personal Loan with a Salary of Rs. 20000

Personal Loan Eligibility Criteria on 20000 Salary

Your credit score takes a small hit with each loan inquiry. Getting rejected for a loan only makes things worse. Therefore, check your eligibility criteria before approaching the financial institutions.

Use an online test to check if you are eligible for a personal loan. If you get a positive result, contact the bank officials and reconfirm the criteria for extra precaution before proceeding with the loan application. Just think of this step as the fast-track preparation you do the night before your final exam.

Now, the loan providers initiate a credit score check immediately after you hit submit on your loan application. The credit score rates your credit history which includes:

• Current EMIs
• Ongoing loans
• Credit card debts
• Missed payments
• Repayment schedules
• Default loans
• Foreclosures

More often than not, a credit score above 700 makes you eligible for a personal loan. However, there’s a twist.

Bank officials will reject your loan applications, irrespective of your credit score, if you do not have an EMI/NMI ratio below 50. The reason for this is pretty simple. Banks are NOT predatory organizations that want to compromise your living standard just to make a quick buck.

Apart from these, here are a few common eligibility criteria:

• The borrower must be between 21-65 years. The upper and lower limits might differ
• Salaried individuals with specific years of work experience are preferred
• Self-employed individuals with a net income of ₹20,000 need to provide documents to support their cash inflow
• Must possess other KYC documents

Also, Read: Get a Personal Loan for Salary of Rs. 12000

Documents Required for Personal Loan with 20000 Salary

Prepare all your documents in advance to get the loan approved before their hour-long lunch breaks.

For Salaried Individuals

For Self-Employed Individuals

How to Apply for a Personal Loan on Rs. 20000 Salary?

You can either apply for loans on online portals or go to your nearest bank branch.

Online Loan Applications

Online loan applications are preferred when you want instant approval and quick loan disbursals. Most financial institutions offer same-day loan disbursals.

Steps to Apply for a Personal Loan with a Salary of Rs 20,000

Applying for a personal loan with a salary of Rs. 20,000 in India involves a straightforward process. Here are a general steps to help you through it. Please note that the specific requirements and process may vary slightly from one lender to another.

1. Assess Your Needs and Eligibility

• Determine the Need: Ensure that a personal loan covers your financial requirements.
• Check Eligibility: Lenders have specific criteria, including age (usually 21 to 60 years), employment status (salaried or self-employed with a steady income), and a minimum monthly income threshold. Credit score plays a crucial role too; a score above 750 is generally considered good.

2. Research Lenders

• Banks and NBFCs: Look into various banks and Non-Banking Financial Companies (NBFCs) that offer personal loans. Consider interest rates, loan tenure, processing fees, and other charges.
• Online Lenders: Many fintech companies and online platforms offer quick personal loans with minimal documentation, especially for smaller amounts. They might have higher interest rates but can be more flexible regarding credit scores. If you don’t know which lender would be the best fit for you. You can opt for a personal loan through Credmudra. We will match you with the right lender and ensure a smooth disbursement process!

3. Prepare Necessary Documentation

As mentioned above in the blogs, make sure you have all the right documents before applying for a personal loan.

4. Apply for the Loan

Online Application: Most lenders now offer an online application process. Visit the lender’s website or app, fill in the application form, and upload the necessary documents.

5. Loan Approval and Disbursement

• Verification and Approval: The lender will verify your documents and creditworthiness. If everything is in order, your loan application is likely to be approved.
• Disbursement: Once approved, the loan amount will be disbursed to your bank account, usually within a few hours to a few days, depending on the lender.

Offline Loan Applications

Offline loan processes are recommended to individuals who already have a long-term working relationship with the bank. This helps you negotiate a lower interest rate and a more flexible repayment plan. In some cases, the bank officials even increase the multiplier while calculating the loan amount.

The approval process is also faster as the bank already has access to your transaction and loan history.

Interest Rate on a Personal Loan with a Salary of Rs 20,000

Interest rates for loans available to individuals earning a monthly salary of Rs. 20,000 typically begin at 10.99% per annum. You can check out the table below for interest rates offered by our lenders:

Also, Read: How To Get A Personal Loan On Aadhaar Card?

Loan Repayment Procedure for Personal Loan on 20000 Salary

Remember, having an effective repayment plan not only builds the loan provider’s confidence but also helps you plan your repayment schedule. Let’s visualize the repayment schedule for various tenures.

As you can see, the 4 and 5 years are the best options since they do not adversely affect your lifestyle. But, you can also opt for a shorter tenure if you factor in the annual raises, bonuses, promotions, and job switches during the loan period.

Conclusion

Paying a quarter of your monthly salary as EMI does seem daunting. However, personal loans help mitigate the stress of sudden cash crunches, medical emergencies and other unforeseen circumstances. Moreover, leveraging personal loans to gather wealth-generating assets also improves your financial standing.

Credmudra, a loan matchmaking platform, understands your problems and offers highly targeted solutions.

• Minimum ₹9000/month income with lenient eligibility criteria.
• Pre-underwriting services for individuals with low credit scores.
• Minimum documentation during the application process.
• Flexible repayment tenure ranging from a few weeks to 5 years

But, the best part is that Credmudra connects you with multiple loan providers to choose the one with the lowest interest rates.

Looking for an instant loan of INR 20,000?

Sign up on Credmudra and get started.

FAQs

1. How much personal loan can you get with a salary of ₹20,000?

The loan range depends on the banks. However, most banks offer personal loans ranging from ₹50,000 to ₹3,00,000 for a ₹20,000 salary.

2. Is it easy to get a personal salary of ₹20,000 salary?

Yes, with the right documentation and a good credit score, you can easily get personal loans with ₹20,000 salary.

3. How long does it take to receive a personal loan?

Most personal loans are approved and disbursed within 24-48 hours on Credmudra.

4. What is the repayment term for a personal loan?

The maximum repayment term for a personal loan is 5 years. You can either choose a shorter repayment term or opt to foreclose the loan by making larger EMI payments.

5. What is the interest rate for a personal loan with ₹20,000 salary?

The interest varies depending on the interest amount and repayment terms.

Also, Read: I Need 1000 Rupees Loan Urgently

Let’s assume a best case scenario: You’re looking to opt for a personal loan after knowing its benefits, such as a collateral-free method and no end-use restriction. While reviewing the eligibility criteria, you notice that only people with a high credit score can apply for personal loans.

After checking your credit score, you’re restricting yourself from applying for one as you have a low credit score due to past loans and credit cards.

What if we say it is possible to apply for a personal loan with a low credit score?

Here, let’s discuss what a credit score is, why it is important, and some ways to apply for loans with a low credit score.

What is a Credit Score?

A credit score is a three-digit numeric summary ranging from 300 to 900. Lenders, banks, and financial institutions mainly approve personal loans based on your credit score.

The higher the credit score (above 700), the more chances of getting approved for a personal loan with lower interest rates. Conversely, if the score range is low (300-600), you might be offered loans with high interest rates.

That’s because the credit score shows your creditworthiness. This score is based on many factors such as loan repayment history, debt-to-income ratio, credit mix, the type of loan you opted for, and credit cards you used.

In short, the credit score gives the lenders a clear idea of your repayment abilities and whether or not you can afford the loan.

How Does Your Credit Score Impact The Approval of a Personal Loan?

Would you lend money to everyone who is looking to borrow? Of course not; you’ll assess things such as the borrower’s income, if the person would use the credit for a particular purpose, and other financial behaviors.

This is because you’re concerned about the repayment of the money. In the same way, when lenders need to approve loans, they check for crucial details like income proof and credit score.

• Income shows if the borrower can afford the loan amount.
• A credit score shows how the borrower handled the previous loans responsibly.

Lenders decide if you’re a high or low-risk borrower and if you’ll pay the repayment promptly based on your credit score. Maintaining a good credit score is crucial in helping lenders approve the loan hassle-free.

Also, Read: Credit Score vs CIBIL Score: Are they Even Different?

Can You Get a Personal Loan With a Low Credit Score?

Yes, you can.

Before applying for one, ensure that you know both the advantages and disadvantages of opting for a low credit score.

Pros of Getting a Loan With a Low Credit Score

A high credit score is not required – The main benefit is you can apply for personal loans even with a low credit score. This will help if you’re seeking emergency loans without a high score.
But, work on maintaining a good credit score to avoid getting rejected for personal loans in the future.

Digital process – Doubting if you should visit banks multiple times to get approved with a low credit score? Applying for a personal loan without a decent credit score is possible online on marketplaces such as Credmudra.
Submit necessary documents such as your PAN and/or Aadhaar card, fill in the details, and after verification, you’ll receive the amount in your bank account in 24-48 hours.

Instant disbursal – As these loans are mostly offered by NBFCs and fintech companies through an online process, you don’t have a lengthy waiting period to access the amount.
Many lenders complete the verification process quickly and disburse the loan amount within 48 hours.

Also, Read: How to Get a Business Loan on Low Credit Score?

Cons of Applying for a Loan Without a Decent Credit sScore

• High-interest rates – A low credit score indicates that you’re a high-risk borrower so lenders might approve the loan with only high interest rates. With such high-interest rates, it can become difficult to repay the loan.
• High chances of getting scammed – With increasing online lenders, you must be careful about getting scammed and engaging in fraudulent activities.

When applying with a low credit score, people who are desperate to get approved might ignore checking the authenticity of the lender. Taking advantage of this, fake lenders can misuse your account number, Aadhar card details, and PAN number data for their benefit.

Calculate Your Personal Loan EMI

5 Ways to Get a Personal Loan Without a Decent Credit Score

1. Collateral-Based Loans

When applying for a personal loan, normally, there is no need to pledge any asset as collateral to the lender. The lender relies on your income proof and credit score to assess your repayment abilities and sanction the loan.

But with collateral-based loans, use any of your assets as collateral even when you have a low credit score. It’s because the lenders can sell the asset even if you’re unable to repay the loan.

As the risk gets lower on the lender side, they don’t demand high credit scores with collateral loans.

2. Small Cash Loans

Looking to borrow only a small amount of cash to handle the immediate daily expenses? Then, opt for small cash loans which have a higher possibility of getting approved.

Small cash or mini-cash loans are short-term loans that help people handle unexpected expenses with instant cash. Banks, NBFCs, and online lenders offer this loan even when you have a low credit score.

In this case, lenders approve the loan by checking other important criteria like the borrower’s income and job.

3. Stable Income Proof

You may have had financial struggles in the past and missed some timely EMIs while managing other expenses.

If your paycheck is high now with a stable job or you have additional sources of income, show this income proof to get your loan approved. This proves to the lender that you can repay the loan promptly.

4. Get a Guarantor

Have a family member or friend who can apply for a personal loan as a guarantor? Then, you have a high chance of getting approved. The only thing is the guarantor must have a high credit score.

When you apply for a loan with a co-applicant or guarantor, both are equally responsible for paying off the loan. So, if you fail to repay, the lender can retrieve the amount from the guarantor.

5. Explain NA or NH to the Lender

The ‘No history’ report shows that you have no borrowing history and are new to the credit system. While this is not considered negative, some lenders don’t approve loans with such a history.

So, explain your inactivity to the lender, and you have possibilities of getting approved with a high-interest rate.

Also, Read: How to Get Loan Without a CIBIL Score?

5 Effective Tips to Increase Your Credit Score

While you can opt for a personal loan with a lower credit score when you need a loan urgently, ensure to improve your credit score.

Some ways to increase your credit score are:

• Pay off your dues promptly. Set reminders and repay the loans on time, as it affects your credit score negatively if you fail
• Don’t apply for multiple loans within a short period. This might give bad signals to the lenders as a financially struggling person
• Apply for different types of loans, such as secured, unsecured, and short-term
• Check your credit report for errors and inconsistencies. Report and rectify these errors to increase the credit score instantly
• Maintain old credit cards with no outstanding dues

How to Choose the Right Lender to Apply for a Personal Loan?

The trickiest part about applying for a personal loan with a low credit score is identifying the right lender. Skip this part; you have an increased chance of getting scammed.

So, verify the lender’s authenticity by checking the reviews and ratings on their website. Carry out this step individually for all the lenders offering loans without the credit score.

The best solution? Use Credmudra to get matched to the right lender. Credmudra is a matchmaker that can help you connect with lenders with a high chance of getting your loan approved.

Instead of manually checking the authenticity of lenders, Credmudra does it for you.

Steps to Apply for a Personal Loan without a High Credit Score using Credmudra:

• First, enter the mobile number to receive the OTP
• After OTP verification, carry out the next steps
• Submit all the details such as name, address, employment status, salary, and required loan amount
• We’ll then match you with the lender who will approve your loan based on your requirements
• After assessing your creditworthiness, you’ll be offered the loan amount with flexible repayment tenures

Also, Read: 8 Best Ways to Improve Your CIBIL Score Quickly

Opt for a Personal Loan Without Worrying About the Approval

Applying for a personal loan online is the easy part. You need to check the authenticity of the lender and eligibility criteria.

However, opting for a personal loan online with a low credit score is challenging. You must avoid getting scammed and choose lenders who would sanction you the loan.

With Credmudra, you don’t need to search for the lenders. Submit the details, and we’ll match you with credible lenders who approve the loan with lower credit scores.

Sign up on Credmudra to get started.

We’ll match you with a reliable lender within minutes.

Also, Read: How To Get Credit Card Without CIBIL Score: 4 Ways

FAQs

1. Can you Apply for a Personal Loan with a Low Credit Score?

You can apply for personal loans even with a slightly lower credit score. Lenders will consider your income and job to approve the loan.

2. Is the Credit Score Important for Getting Approved?

Yes, credit score is an important factor that lenders look for in a borrower. Work on your credit score and increase it by paying the current loans on time.

3. What are the Factors that Determine a Good Credit Score?

A high credit score depends on many factors, such as loan repayment history, credit mix, type of credit, and debt-to-income ratio.

4. Can I Access the Loans Instantly, even with a Low Credit Score?

The process from application to getting the amount in your account can take 24-48 hours.

5. What is the Interest Rate for Loans with Lower Credit Scores?

Expect high-interest rates ranging from 25-35% when you apply with a low credit score.

Also, Read: NBFC Loans Without CIBIL Score: Your Complete Guide

If you’re looking for a beautiful and exotic destination to visit in India, you should definitely consider Lakshadweep. This stunning archipelago is located in the Arabian Sea and is made up of 36 islands. It’s a great place to relax, soak up the sun, and explore the local culture. However, planning a trip to Lakshadweep can be expensive, especially if you’re on a tight budget. In this post, we’ll show you how to get a loan for a trip to Lakshadweep so you can enjoy all that this magical place has to offer without breaking the bank.

Why You Should Visit Lakshadweep

Lakshadweep is a hidden gem in India that offers visitors an authentic island experience. The islands are known for their natural beauty, crystal-clear waters, and rich marine life. You can go snorkeling, scuba diving, and even take a glass-bottom boat ride to see the colorful coral reefs and marine species. The islands also have a rich history and culture, and you can visit local villages to learn more about their way of life. Overall, Lakshadweep is an excellent destination for anyone who wants to experience a unique and unforgettable vacation.

What You Should Do in Lakshadweep

There are plenty of things to do in Lakshadweep, depending on your interests. If you’re a water sports enthusiast, you should definitely try snorkeling, scuba diving, or kayaking. You can also go on a fishing trip or take a glass-bottom boat ride to see the marine life up close. If you’re more interested in exploring the local culture, you can visit the local villages and learn more about their customs and traditions. You can also visit the lighthouses on some of the islands and enjoy the stunning views of the sea. Whatever your interests, you’re sure to find something to do in Lakshadweep.

Calculate Your Personal Loan EMI

You Can Take a Small Personal Loan and Not Touch Your Savings

If you’re on a tight budget, you may be hesitant to spend your savings on a vacation. However, you can take a small personal loan to cover the cost of your trip and pay it back in installments. This way, you can enjoy your vacation without worrying about depleting your savings. Many banks and financial institutions offer personal loans that are specifically designed for travel. You can compare the interest rates and terms of different loans to find the one that best suits your needs.

Applying for a small personal loan can be tiring, but you can skip the long process and opt for a personal loan through Credmudra to plan your trip to Lakshadweep. The loan application process involves a straightforward and digital process. Here’s a general overview of the steps you might need to follow:

1. Documentation: The required documents for the loan application are usually minimal and can include identity proof, address proof, and income-related documents. Aadhaar Card, PAN card, and bank statements are typical examples of the documents needed.

2. Online Application: You can apply for the loan online, which is a convenient option. The process is 100% digital, allowing you to complete the application from the comfort of your home.

3. Loan Amount and Terms: You will need to decide on the loan amount you require for your trip and the terms of the loan, including repayment period and interest rate. It’s essential to choose a loan amount and terms that align with your financial capability.

4. Approval and Disbursal: After submitting your application and documents, the loan approval process starts. If your application is approved, the loan amount is usually disbursed quickly, often within a short timeframe.

5. Repayment: Be mindful of the repayment terms and ensure that you are comfortable with the EMI (Equated Monthly Instalment) amounts and the repayment timeline.

Lakshadweep is a beautiful and exotic destination that offers visitors an authentic island experience. However, planning a trip to Lakshadweep can be expensive, especially if you’re on a tight budget. If you’re looking to take a trip to Lakshadweep, you can take a small personal loan to cover the cost of your trip and pay it back in installments. This way, you can enjoy all that this magical place has to offer without breaking the bank. So what are you waiting for?

Start planning your trip to Lakshadweep today!

Financial responsibilities and obligations often drain up the majority of our income, preventing us from enjoying the finer things in life. Say, how many times have you had to cancel your vacation plans due to a cash crunch?  These cash crunches also leave you vulnerable to emergencies such as vehicle repairs, house renovations, or medical visits. As a result, personal loans have become the go-to option for individuals seeking financial assistance. In fact, 67% of Indians have taken a personal loan to meet their financial needs. However, the process of applying for a personal loan can be confusing, with so many different offerings from banks, online lenders, NBFCs, and other financial institutions. This blog guides you through the various steps you need to undertake to avail a personal loan. And, spoiler alert: It is much simpler than you think!

What Is A Personal Loan?

A personal loan is a short-term, unsecured loan that individuals obtain from financial institutions. In simpler words, these loans require no collateral, making them attractive options for borrowers. 

You can use a personal loan: 

• For debt consolidation 
• To cover unexpected expenses
• Facilitate large purchases 
• To cover relocation costs
• Finance tax bills 

Treat personal loans as a short-term financial tool rather than a financial obligation. A change of perspective can reduce the stress of applying for loans. 

Steps To Get A Personal Loan

Here’s a tip from someone who triple-checks, even quadruple-checks, every single thing before submitting the documents: there’s no such thing as over preparation. Here’s an extensive checklist of everything you need to do while applying for a personal loan. 

Check The Eligibility Criteria

Most financial institutions offer online tests to check your eligibility criteria. Alternatively, marketplaces like Credmudra for personal loan allow you to easily check your eligibility right from your home.  If you still doubt the result’s authenticity, contact the bank’s loan officials to get a better idea about your eligibility. While the eligibility criteria vary from bank to bank, they all run a credit score check before continuing with your loan application. Credit score refers to your credit history, including all ongoing loans, EMIs, and credit card debt. The credit history includes missed payments, repayment schedules, default loans, and foreclosures. Usually, a score above 700 makes you eligible for personal loans. However, it is better to check with the bank managers as the minimum credit score may vary between 650 and 750. Overall, a higher credit score makes the process smoother and gives you an upper hand in negotiations. 

Here are some other common eligibility criteria:

• The age of the borrower must be between 21-65 years. Again, the age limit might vary depending on the bank’s rules
• Salaried individuals with specific years of employment are preferred.
• Self-employed individuals need to furnish extra documents to meet the eligibility criteria
• Must possess the required KYC 

Prepare The Documents 

Preparing all the documents earlier helps you get loan approvals before the bank officials can go on their lunch breaks.

Here’s the list of documents you need ready while applying for a personal loan: 

• For Salaried Employees

• For Self-Employed Individuals

Carry multiple self-attested photocopies of the documents and a few passport-size photographs if you go to a local bank branch. On the other hand, for online loan applications, all you need to do is scan these documents and upload them on the bank’s site. 

Also, Read: Get a Personal Loan for Salary of Rs. 12000

Select The Loan Amount And Tenure

There are several factors to consider before selecting the loan amount and tenure. 

Interest Rate

Personal loans are notorious for having higher interest rates than other loan types. You should know that financial institutions are not trying to take advantage of your urgency by charging you more interest. Rather, the higher interest rate only offsets the risk of it being an unsecured loan.  Now, here’s a secret: You can negotiate for a lower interest rate! 

A high credit score increases your creditworthiness and decreases the chances of loan default. You can ask for a lower interest rate from your lenders by leveraging your credit history. The negotiations are also easier if you have an existing relationship with the bank. 

Principal Amount 

The principal amount is the loan amount you borrow and on which the interest is charged. Bank officials might try to upsell and push you to opt for a higher-than-required loan amount. And, this seems tempting at first, but, remember, a higher principal amount attracts higher interest repayments. 

So, finalize a loan amount depending on your requirements and do not budge when offered an upgrade. It prevents the harmless personal loan from becoming a financial burden. 

Tenure

Interest rate and principal amount have a significant impact on your tenure. If you have a lower principal amount, opt for shorter repayment tenure for lower interest payments. A longer tenure for a larger principal amount reduces your monthly EMI. 

Similarly, choose a shorter tenure for low-interest loans to prevent interest accumulation. If you get a high-interest personal loan due to a low credit score, choose a long tenure for lower EMI amounts. 

Other external factors involve analyzing existing liabilities to manage your ongoing EMI and new ones. Consider opting for a shorter tenure if you are anticipating an upcoming bonus that can be used to pay off the personal loan amount. 

Overall, find a suitable balance between tenure, principal, and interest rate while applying for a personal loan. 

Loan Disbursal

Lastly, check for hidden charges and additional costs associated with the loan. It is best to clarify your doubts with the loan official before moving forward with the process. Then, select the account where you want to receive the money. 

That’s how simple it is to get a personal loan. 

Also, Read: How to Get a Personal Loan with a Salary of ₹20,000?

The short answer: it’s subjective. Let’s look at the different benefits of the online and offline experiences. 

Calculate Your Personal Loan EMI 

Online Loan Application 

• Online loan applications offer personal loans to a more diverse range of people.

Faster Loan Approval

• Online lenders and bank portals have a faster loan approval rate than regular brick-and-mortar banks. Some instant loan providers even disburse the loan amount on the same day. 

Prequalify for Loan Amount

• Financial institutions, with access to your transaction and credit history, will often pre-qualify you for a loan amount. As a result, the loan approval process is smoother and feels less like an interrogation. 

Loan Approval with No Credit Score 

• Online lenders are more lenient with credit history checks. Instead, the lenders analyze alternative data like utility payment history and recent bank statements while offering loans. 

Offline Loan Application

• Offline loan applications are for people who prefer face-to-face lending experience. 

Competitive Interest Rates

• It is easier to negotiate for a lower interest rate with an actual person than with a computer program. 

Access to a Larger Loan Amount

• People with an established history with their local financial institutions are offered access to larger loan amounts with lower interest rates. Plus, the approval process is faster as the bank usually has access to all the required information. 

Also, Read: Get a Personal Loan Without Credit Score – 5 Fool-Proof Ways

Conclusion 

It is a challenge to find the best personal loan with all the varying requirements and loan terms from thousands of lenders. Credmudra is a matchmaking platform that connects prospective borrowers with the best lending partners. 

The benefits of using Credmudra for your personal loan application include: 

• Easy online application with low documentation requirements
• Lenient eligibility criteria, with a minimum of ₹9000/month income
• Flexible repayment period ranging from a few weeks to 5 years
• Competitive interest rates start at 1.08% per month. 

The best part? Credmudra offers pre-underwriting services that validate creditworthiness by analyzing your employment and income status. As a result, you stand a chance to get a personal loan even with a low credit score. 

FAQs

1. What is the Minimum Credit Score Required to get a Personal Loan?

A 700+ credit score is recommended to get a personal loan. However, some banks may also offer personal loans, albeit with a higher interest rate, with a 600+ credit score. It is better to check the bank’s policy before opting for the loan amount. 

2. Can you Apply for Personal Loans with irregular Income?

Yes, you can apply for a personal loan with irregular income. You need to furnish extra documents, like ITR and income statements, to assure the bank that you can pay the EMI amount. 

3. Is it Possible to Repay Loans before the End of Tenure?

Yes, it is possible to repay the loan amount before the end of the tenure. Check with the bank about the foreclosure procedure as some levy extra charges.

4. Are the Interest Rates Fixed on a Personal Loan?

While the interest rate on a personal loan is fixed, it is possible to negotiate for a lower interest rate before availing the loan. Remember, the higher your credit score, the higher your negotiation power. 

5. How Long does it take to receive the Loan Amount in the Bank Account?

The loan disbursement duration varies from bank to bank. Some banks may release the loan amount within a few hours, while others may take a few days. It is best to check with the bank while applying for a loan.