Personal Loan for 8000 Salary : Step By Step Guide

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Let’s face it: life in India throws unexpected curveballs sometimes. Whether it’s a medical emergency, a sudden home repair, or that dream vacation you’ve been saving for, financial needs can arise when we least expect them. And for those of us earning a salary of around 8,000 rupees, navigating the world of personal loans can feel like a daunting task. But fear not, in this blog post, we’ll take a closer look at what personal loans are and how they can impact your finances. We’ll also provide some tips on how you can get a personal loan even if your salary is only 8000 rupees.

What is a Personal Loan?

A personal loan is an unsecured loan that you can get from a bank or a financial institution. Unlike a secured loan, such as a home loan or a car loan, you don’t need to provide any collateral to get a personal loan. This means that the lender will assess your creditworthiness based on your credit score, income, and other factors. Personal loans are usually used to cover unexpected expenses, such as medical bills, home repairs, or travel expenses.

The Impact of a Personal Loan for Salary ₹8000

Let’s be honest: 8,000 rupees can feel tight, especially when faced with an unexpected expense. A personal loan can provide much-needed breathing room, but it’s crucial to be mindful of the impact it has on your finances.

Here are Some Things to Consider:

1. High-Interest Rates: Personal loans usually come with high interest rates, especially if you have a low credit score. This means that you’ll end up paying more in interest over the life of the loan.

2. Short Repayment Term: Personal loans usually have short repayment terms, typically between 1 to 5 years. This means that you’ll need to make higher monthly payments, which can be challenging to manage on a salary of 8000 rupees.

3. Debt Trap: If you’re not careful, getting a personal loan can lead to a debt trap. If you’re already struggling to make ends meet on your salary of 8000 rupees, taking on additional debt can make your financial situation worse.

4. Debt-Income Ratio: With a limited income, maintaining a low debt-to-income ratio is essential to manage repayments effectively and avoid financial strain.

How Much Of A Loan Can I Get If My Salary Is 8,000?

Financial institutions often use the Multiplier Method and the Fixed Obligation to Income Ratio (FOIR), or a combination of both, to determine your eligibility for a personal loan.

Multiplier Method:

This method is widely used by banks and financial organizations to assess personal loan eligibility based on a preset multiple of the borrower’s income. Typically, this multiple ranges from 10 to 28 times the applicant’s net monthly salary. The multiplier might result in eligibility for a higher loan amount and potentially lower interest rates if you are employed by a well-known company and earn a higher salary.

For example, to understand how much loan you might get on a salary of 8,000, using the upper range of the multiplier (let’s say 10 times for conservative estimation), the maximum amount you would qualify for without any other EMIs would be:

Maximum loan amount = Monthly salary × Multiplier = 8,000 × 10 =  Rupees 80,000, assuming a 60-month repayment term.

The examples provided are based on the assumption that you do not have any existing monthly financial commitments. These examples are for illustration only, and for an accurate assessment, you should consult with your lender directly.

Fixed Obligation to Income Ratio (FOIR):

This method calculates the maximum amount of monthly installments you can afford using your net income after covering expenses such as rent and existing EMIs. Lenders typically consider 50% to 75% of your net income as available for loan repayments. If your current expenses exceed this percentage, banks may either extend the loan tenure or reduce the loan amount.

Consider a scenario where an individual earns a salary of Rupees 8,000. If this individual has monthly EMIs of less than ₹4,000, they might be able to secure a personal loan up to approximately ₹1,20,000. However, if their monthly EMI obligation is reduced to ₹2,000, they could potentially qualify for a personal loan up to ₹2,40,000 or more, depending on a strong credit score and a 60-month repayment period.

The examples provided are based on the assumption that you do not have any existing monthly financial commitments. These examples are for illustration only, and for an accurate assessment, you should consult with your lender directly.

How to Get a Personal Loan if My Salary is ₹8,000:

1. Assess Your Requirement: Understand the necessity of the loan and ensure that the amount borrowed aligns with your repayment capability.

2. Improve Credit Score: A healthy credit score (700 or above) can significantly enhance loan approval chances. Pay off existing debts and maintain a clean financial record.

3. Research Lenders: Explore various lenders, including banks, NBFCs (Non-Banking Financial Companies), and online lenders who cater to lower-income groups.

4. Compare Offers: Evaluate interest rates, processing fees, and other charges of different lenders. Use online calculators to understand EMI (Equated Monthly Installment) structures.

5. Apply with a Co-applicant or Guarantor: Increase your loan eligibility by applying with a co-applicant or a guarantor with a stable income and a good credit score.

Also, Read: I Need a 3000 Rupees Loan Urgently

Documents Required to Get a Personal Loan for a Salary of ₹8,000 Rupees:

The documentation process is a pivotal step in securing a personal loan. Generally, lenders require the following documents:

1. Identity Proof: PAN Card, Aadhaar Card, Voter ID, or Passport.

2. Address Proof: Recent utility bills, Aadhaar Card, or Passport.

3. Income Proof: Salary slips of the last three months, bank statements of the last six months, and Form 16 or Income Tax Returns.

4. Employment Proof: An employment certificate or an ID card issued by the current employer.

5. Credit Score Report: Although not always required, presenting a credit score report can bolster your application.

In case your credit score report is not that good, you can opt for Credmudra, as we advocate for people like you, and get you, your loan from the right lender in no time!

Eligibility Criteria for a Personal Loan for Salary of ₹8,000 Rupees:

Eligibility criteria may vary across lenders, but generally include:

1. Age: Typically between 21 and 60 years.

2. Employment Type: Salaried individuals with a stable job for a minimum period, as stipulated by the lender.

3. Minimum Income: Though variable, some lenders offer loans to individuals earning as low as ₹8,000, subject to other qualifying criteria.

4. Credit Score: A good credit score (preferably above 750) is often a decisive factor.

5. Work Experience: A consistent work history, usually a minimum of 2-3 years, can be advantageous.

Also, Read: How Much Personal Loan Can I Get On Rs 25,000 Salary?

Calculate EMI of a Personal Loan with a Salary of Rs. 8000

Interest Rate On A Personal Loan For Salary 8,000 Earners:

Interest rates on personal loans can vary among lenders for those earning a salary of 8,000. Below is a table of interest rates provided by our lending partners to help you gain a clearer insight:

Wrapping it All Up:

Getting a personal loan when you’re earning a salary of 8,000 rupees can be challenging, but it’s not impossible. Before applying for a loan, it’s important to understand the impact it can have on your finances and to take steps to improve your credit score. By following these tips, you can increase your chances of getting approved for a personal loan and avoid falling into a debt trap.
If you are looking for a bigger loan, like 2 lakh, you can quickly get it online through your Aadhar card!

We have explained the interest rates on it and the eligibility criteria for the loan on an Aadhar card, in this blog. Do check it out 🙂

Have you ever considered a personal loan? What are your biggest concerns? Share your thoughts and experiences in the comments below!

FAQs:

1. Is it Possible for Someone to Obtain a Loan of ₹5,000?

Yes, to qualify for a ₹5,000 personal loan using your Aadhar card from Fibe, you need to be an Indian resident within the age bracket of 21 to 55 years and have a minimum monthly income of ₹18,000 if you live in a metro city.

2. Is the Aadhar Card Loan a Legitimate Option?

Loans offered against Aadhar cards are legitimate when sourced from authorized lenders. However, it’s important to stay vigilant about scams and fraudulent schemes.

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