How to Get a Personal Loan for ₹12,000 Salary?

Posted on Thursday, February 13th, 2025 | By IndusInd Bank

Securing a personal loan is a crucial step in managing unexpected financial needs or fulfilling personal aspirations. However, if you have a monthly salary of ₹12,000, you may face certain challenges in getting loan approvals. This article will guide you through the process of obtaining a personal loan for a ₹12,000 salary.

Understanding Personal Loans

A personal loan is an unsecured loan that can be used for various purposes, such as medical emergencies, home renovations, or weddings. Unlike secured loans, personal loans do not require collateral, but they do depend heavily on your creditworthiness and income.

Challenges with a ₹12,000 Salary

Having a monthly salary of ₹12,000 can limit your options, as many banks and financial institutions have a minimum income requirement. This is primarily to ensure borrowers can manage their monthly repayments. With a lower income, lenders may perceive you as a higher risk, potentially leading to higher interest rates or loan rejections.

Exploring Your Options

1. Non-Banking Financial Companies (NBFCs): NBFCs often have more relaxed criteria compared to traditional banks. They might offer loans to individuals with lower salaries, although the interest rates may be higher.
2. Credit Unions: These member-owned financial cooperatives sometimes provide loans to individuals with lower incomes, offering more personalised service and competitive rates.
3. Peer-to-Peer Lending Platforms: These platforms connect borrowers directly with individual lenders, often providing more flexible terms than traditional financial institutions.
4. Microfinance Institutions: Specifically tailored for low-income individuals, these institutions offer smaller loan amounts with terms that suit borrowers’ financial conditions.

Does IndusInd Bank Offer Personal Loan for ₹12,000 Salary?

IndusInd Bank is one of the prominent banks in India offering personal loans with competitive interest rates and flexible repayment options. However, it’s important to note that IndusInd Bank requires a minimum monthly income of ₹25,000 when you apply for a personal loan. This means that individuals earning ₹12,000 per month do not qualify for a personal loan directly from IndusInd Bank. However, understanding our offerings can be beneficial for when your financial situation improves or if you want to explore joint applications with a co-borrower who meets the income criteria. Here are a few features of IndusInd Bank Personal Loans:

1. Loan Amount Flexibility

Starting at ₹30,000, you have the freedom to select the precise loan amount you require, whether it’s ₹50,000 or a higher sum, up to a maximum of ₹5 lakh.

2. Attractive Interest Rates

IndusInd Bank provides favourable interest rates starting at 10.49%, helping you manage your finances more effectively.

3. Flexible Repayment Terms

Choose a repayment term that fits your financial needs, ranging from 1 to 4 years, with the flexible options offered by the bank.

4. No Need for Collateral

You can get a personal loan from IndusInd Bank without the need to provide any assets as security.

5. Fully Digital Application Process

IndusInd Bank offers a completely digital process for applying for a personal loan, allowing you to complete the application and submit your documents online.

Tips for Successful Loan Approval

6. Assess Your Needs and Eligibility

Determine how much you need to borrow and check the eligibility criteria of various lenders. Use a personal loan calculator to understand potential EMI amount and interest rates.

7. Consider a Co-Applicant

If you have a family member with a stable income, applying jointly can improve your chances of approval, even with a lower salary.

8. Maintain a Stable Job

Lenders prefer borrowers with stable employment histories. Avoid frequent job changes, especially during the loan application process.

9. Limit Existing Debts

Keep your existing debt levels manageable. Lenders assess your debt-to-income ratio to determine your repayment capacity.

10. Highlight Additional Income

If you have additional sources of income, such as freelance work or rental income, include this information in your application to strengthen your financial profile.

Also Read: Enhancing Credit Scores through Personal Loans: Myth or Reality?

Conclusion

While obtaining a personal loan for a ₹12,000 salary may pose some challenges, it is not impossible. By exploring options like alternative lenders, improving your credit score, and potentially apply for a personal loan with a co-applicant, you can enhance your chances of approval. Although IndusInd Bank requires a minimum income of ₹25,000 for personal loan applications, their offerings can be an option for future financial planning as your income grows.

When navigating the personal loan landscape, patience and thorough research are key. Use tools like a personal loan calculator to understand your financial commitments fully. By taking these steps, you can secure a loan that meets your needs while fostering a stronger financial future. Apply now for IndusInd Bank Personal Loan!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.