When you have a low salary, getting a loan can feel like a very big challenge. Traditional banks typically have strict rules that demand a high salary or a long credit history. It is especially irritating when there’s something you need the money for without delay. The good news, however, is that there are plenty of other ways to secure a loan even if you don’t earn a ton.
The notion that you can’t get a loan if you don’t have a high income is an old one. Today, there are various new and smart avenues open for someone who wants a personal loan on a 15,000 salary. Here in this blog, we are going to discuss the best alternatives to a traditional personal loan that could assist you in obtaining the money you need.
1. The Challenge for a Regular Personal Loan
While it’s not impossible to get a personal loan on a 15,000 salary, it can be a bit hard with some lenders. This is because banks want to be sure that you can pay back the loan without any problems. A low salary can make them feel that you might not be able to afford the monthly payments (EMIs) after all your other bills are paid. So, they might say no, or they might not give you the full loan amount you need. However, this does not signal the end of your journey. There are many other doors you can knock on.
2. The Top Alternatives You Can Choose
If a regular personal loan is not an option, don’t worry. There are plenty of other loans out there that cater to people with lower incomes.
- Gold Loans: This is the smartest and most popular choice. You promise your gold to the lender. The lender lends you money by borrowing against the value of the gold. When you pay the loan back, you’re repaid with your gold.
- Why It’s Good: Gold loans come with a much lower interest rate because the lender has assurance, and there is collateral involved. It’s also a fairly quick and simple process, and requires little paperwork.
- Loan Against Fixed Deposits (FD): You may take a loan against your money in a bank FD. The bank gives you a loan of up to 90% of your FD’s value.
- Why It’s Good: This is one of the safest and quickest loans. You don’t need to smash your FD, so it continues to earn interest. The rate of interest charged on this loan is quite low, slightly more than what your FD is earning.
- Peer-to-Peer (P2P) Lending: This is an extremely up-to-date way to borrow money. Some sites put you in touch with individuals who would like to lend money. A bank isn’t necessary in order to get a loan from them.
- Why It’s Good: These platforms tend to have looser regulations and might lend to a person who couldn’t get a loan from a regular bank. They evaluate your credit history differently.
3. How New Technology is Helping
Today, many new companies are using technology to give loans to people who need them. They are not like banks. They are flexible and use smart ways to check if a person is a good borrower.
- Digital Lending Apps: Many personal loan apps offer small, instant loans, such as ₹2,000 or ₹5,000. These apps don’t rely only on salary slips. Instead, they use smart computer programs to analyse your bank statements, UPI transactions, and digital payment history. This helps them check whether you have a steady flow of income and whether you manage your money responsibly, even if you are self-employed or don’t have a fixed monthly salary.
- Loans from Fintechs: Many fintechs, like Stashfin, are experts at this. They have developed unique loan products targeted towards those with lower incomes. They have a super quick and simple online process that you can use to help secure a loan with very little paperwork. That has allowed plenty of people to get a personal loan on a 15,000 salary who couldn’t do it in the past.
4. Government Schemes and Other Options
The government and other groups also have programs to help people with low incomes.
- Microfinance Loans: Tiny loans that are distributed to individuals in rural areas or who have low incomes. They are typically issued to a group of people, and that group is responsible for repaying the loan. The interest rates may be higher, but they are a good option for a small loan.
- Loans from Your Company: Some companies will give you a small loan or an advance on your next paycheck. There’s no harm in seeing if your company offers one of these programs. This is an easy way of going about it without all that interest.
Conclusion
The idea that you cannot get a personal loan on a 15,000 Salary is a myth. While it might be a bit hard to get a big loan from a traditional bank, there are many new and smart options available today. From gold loans and loans against your savings to new digital lenders, there are many doors you can knock on. The key is to be a smart borrower, understand your options, and choose the one that is best for you.
FAQs
Q1. Are gold loans safer than personal loans?
Yes, in a way. Gold loans are secured loans; your gold is a guarantee. Since the lender isn’t taking on as much risk, they can charge them less interest.
Q2. Do I need a good credit score to get a loan on a low salary?
Yes, a high credit score matters a lot. It demonstrates to lenders that you are a responsible borrower. It may be able to help you get a loan, even if your salary is low.
Q3. Can I get a loan if I get my salary in cash?
This can be a challenge. Many digital lenders require that you have a bank account into which your salary is deposited. This helps them verify your income. You should try to get your salary into your bank account to make it easier to get a loan.
Q4. Are digital lending apps safe?
Yes, most real digital lending apps are safe. You should always check if they are registered with the Reserve Bank of India (RBI). This is the most important thing to look for to make sure they are genuine.
