Personal Loan for Rs. 14,000 Salary: Eligibility, Tips & Top Lenders

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Managing bills, paying rent, and funding personal projects sometimes become challenging with a salary of ₹14,000. The result is cash crunches during medical and other financial emergencies.

Thankfully, personal loans act as a life jacket, keeping you afloat during these turbulent times. However, the loan process is slightly different due to the salary range. But, don’t worry, just grab our hands, and we’ll pull you out of the water.

This blog guides you through the personal loan application process and prepares you for anything and everything the loan official may throw at you. By the end of it, you’ll be ready to bag a personal loan with flexible terms.

4 Benefits of Personal Loans for 14,000 Salary Earners

1. Debt Consolidation: For individuals juggling multiple debts, a personal loan can be used to consolidate these debts into a single, more . manageable payment with a potentially lower interest rate, which can lead to savings on interest payments and faster debt repayment.

2. Credit Building: If managed responsibly, taking out a personal loan and making regular, on-time payments can help build or improve credit scores. A good credit history can open up opportunities for better loan terms in the future.

3. No Collateral Requirement: Most personal loans are unsecured, meaning they don’t require collateral (such as a home or car). This can be particularly beneficial for individuals who may not have significant assets to use as collateral.

4. Flexible Use of Funds: Unlike specific loans like auto loans or home loans, personal loans can be used for a variety of purposes, offering flexibility to meet different financial needs, whether it’s for education, home improvement, or other personal goals.

How Much Personal Loan Can You Get With 14000 Salary?

Most banks do not offer personal loans to individuals in this salary range due to high chances of default. The banks that do offer loans often require a co-signer or guarantor.

Therefore, non-banking financial companies (NBFC) and P2P lending websites are your best bet for securing a loan. They require proof of stable income and a strong credit history. However, they charge a higher interest rate and have a shorter repayment window. Now, let’s see how these financial institutions calculate the personal loan amount.

Multiplier Method

The personal loan amount is calculated by multiplying the current net monthly income (NMI) with a pre-determined multiplier, usually between 10 and 24.

For example, with a 22 multiplier, your final loan amount becomes ₹3,08,000 (₹14,000 x 22). The final loan amount can be increased if you add a co-signer or offer any asset as collateral.

Plus, they calculate the EMI/NMI ratio to ensure your monthly instalments do not affect your lifestyle. As a rule of thumb, the EMI should be less than half of your monthly salary.

To sum it up, you can get a personal loan from ₹5,000 to ₹5,00,000. The chances of personal loan approval increase if you have a guarantor or collateral.

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

Calculate EMI of a Personal Loan with a Salary of Rs. 14000

How to Apply for a Personal Loan for Rs.14,000 Salary?

We must warn you that the steps for the loan application process are so easy that you might want to do it again, and again.
A note of caution: Opt for the loan amount that you can easily repay within the stipulated window.

1. Eligibility Criteria 

Search for the type of personal loan you require and thoroughly read through its eligibility criteria. NBFCs also offer online questionnaires to check your eligibility criteria. Apply for the loans you qualify for to increase your approval rate.

In short, the goal is to reduce rejections to prevent your credit score from decreasing.

Talking about credit scores, it is the first thing loan officials check before moving ahead with the application. They also check the co-signers credit history before adding their name to the loan. A score of 700-750 makes it easy to get loans.

Note: Even if your credit score is above 750, your loan application will be rejected if your EMI/NMI ratio is more than 50.

Other common eligibility criteria include:

• Age limit of 21-65 years
• Minimum work experience of 3-6 months for salaried individuals
• Minimum business revenue requirement for self-employed individuals
• All the necessary KYC documents

2. Documents Required

Loan officials require multiple documents to verify your financial stability. Instead of compiling the documents the night before, take a few days to organise the documents. Make multiple copies and get them attested to decrease the approval time.

Here are all the Documents you Require.

For Salaried Individuals

For Self-Employed Individuals

If you have co-signers, share their income and address proof.

3. Interest Rate 

NBFCs have a higher interest rate compared to established banks. The rates start around 10% p.a. and go up to 25% p.a., which is still lower than credit card debt’s interest rate of 40% to 45% p.a.

The best part about personal loans is that you can negotiate for an even lower interest rate!

You do not need to possess FBI-level negotiating skills. All you need is a long-term working relationship with the financial institutions and a stellar credit score.

4. Additional Charges 

Again, read through the provided documents to learn about any additional charges. Here are a few charges NBFCs will include in their loan documents.

5. Loan Processing Fee

NBFCs charge a loan processing fee between 2% and 8%. You can also pay the processing fees using the personal loan amount. The loan providers will deduct the processing fee and send the rest to your account.

6. Penalty Fee

A penalty fee of 1% to 2% per month is levied on the overdue amount if you fail to pay your EMIs on time. Ensure you have the EMI amount in your account the day before auto-payment.

7. Foreclosure Fee

Some banks also charge a fee for foreclosure. Foreclosure is the process of closing the ongoing loan by making advance EMI payments or a lump sum amount. The charges differ from bank to bank. The loan provider might waive the fee if you have paid the minimum number of EMIs.

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

How to Apply for a Personal Loan for Rs.14,000 Salary?

The steps of online loan application are as follows

• Choose your loan provider
• Check eligibility criteria
• Upload the documents
• Enter the loan amount and repayment tenure
• Verify the details
• Get your loan amount in your account

You need to visit your nearest NBFC or bank branch with your documents and they will guide you through the offline loan application process.

Loan Repayment Procedure for a Personal Loan with a 14,000 Salary:

A repayment plan helps you stay on track and repay the loan on time, without incurring any penalty fees. Furthermore, the repayment plan helps you create a budget and manage your monthly expenses.

Here’s a breakdown of how your repayment plan will look like for a loan of ₹2,00,000.

Get your Personal Loan Quickly and in a Hassle-Free Manner

By now you know how applying offline for a personal loan is a time-consuming and stressful process.

We believe the loan application process should be stress-free and shouldn’t feel like you’re on the hot seat being quizzed by Amitabh Bachchan.

Instead, opt for a personal loan of INR 14,000 through lending marketplaces such as Credmudra.

Credmudra is a loan-matchmaking platform that connects you to numerous NBFCs and loan providers. In addition, Credmudra

• Provides tailored loan offers using advanced data analytics.
• Addresses loan inquiries about the application processes and financial terms.
• Provides a community to encourage people to engage and learn from their experiences.

So, if you are looking for faster loan approvals, quicker disbursement, and flexible terms, sign up for free and get started with Credmudra.

Before you apply or sign up for a loan, consider these key points:

Tips Before You Apply For Personal Loans With a Salary of Rupees 14,000

When considering applying for a personal loan with a salary of Rs 14,000, it’s important to approach the process with careful planning and research. Here are some tips to consider before applying for a personal loan:

1. Consider the Interest Rate and APR:

The Annual Percentage Rate (APR) includes the interest rate and any fees charged by the lender. Comparing APRs from different lenders can give you a better idea of the total cost of the loan.

2. Think About the Urgency and Necessity of the Loan:

Evaluate if the loan is essential and if now is the right time to borrow. Sometimes, it might be better to save up for a certain expense rather than taking out a loan.

3. Consider the Impact on Your Credit:

Remember that taking out a loan and your subsequent payment history will impact your credit score. Ensure that you can meet the repayment obligations to avoid negative effects on your credit.

Also, Read: 50000 Loan on PAN Card: Check Eligibility, and Steps to Apply

FAQs

1. How much Loan can you get with a ₹14,000 Salary?

You can get up to ₹5,00,000 in loans, provided you fulfill the other requirements.

2. What are the Personal Loan Interest Rates of NBFCs?

The personal loan interest rates lie between 10% to 25%. But, you can negotiate for a lower rate if you have a good credit score and long-term relationship with the bank.

3. Can you Apply for a Loan with a 600 Credit Score?

Yes, some banks offer loans with a 600 credit score. However, you need to check their eligibility criteria before moving ahead with the application.

4. How long does it take to receive the loan amount?

When you apply for a personal loan on platforms like Credmudra – it takes between 24-48 hours to get the loan approved.

5. What is the Repayment term for a Personal Loan?

The repayment term ranges from a few months to 5 years.