Can You Secure a ₹5 Lakh Loan With a ₹20,000 Salary? Key Tips & Challenges

 

Personal loans are a great way to get quick financial assistance, whether it's for an emergency, a special occasion, or just to treat yourself. Unlike other types of loans, personal loans don't require collateral, making them an attractive option for many. However, lenders have specific eligibility criteria, including income, age, credit score, and more.

 

Is It Possible to Get a ₹5 Lakh Loan with a ₹20,000 Salary?

 

Yes, it’s possible to secure a ₹5 lakh personal loan with a ₹20,000 salary, but it might be challenging. While it is more difficult to get such a high amount with a lower income, certain lenders may approve loans with higher interest rates, shorter repayment terms, and smaller principal amounts.

 

Here are some top lenders offering personal loans for ₹5 lakh to individuals with a ₹20,000 salary:

 

1. KreditBee

 

Maximum Loan: ₹5 Lakh

 

Interest Rates: 16% - 29.95%

 

Loan Tenure: Up to 3 years

 

 

 

2. Fibe (EarlySalary)

 

Maximum Loan: ₹5 Lakh

 

Interest Rates: 16% - 30%

 

Loan Tenure: Up to 3 years

 

 

 

3. MoneyView

 

Maximum Loan: ₹10 Lakh

 

Interest Rates: 14% - 36%

 

Loan Tenure: Up to 5 years

 

 

 

4. Axis Bank

 

Maximum Loan: ₹10 Lakh

 

Interest Rates: 11.25% - 22%

 

Loan Tenure: Up to 5 years

 

 

 

5. Tata Capital

 

Maximum Loan: ₹50 Lakh

 

Interest Rates: 11.99% - 35%

 

Loan Tenure: Up to 7 years

 

 

 

 

Challenges to Watch Out For:

 

Debt-to-Income Ratio: With a ₹20,000 salary, a ₹5 lakh loan might stretch your monthly budget due to high EMIs. If you already have other debts, this could worsen your financial strain.

 

High Interest Rates: Low salaries often come with higher interest rates, which means higher EMIs, making loan repayment difficult.

 

Loan Rejection: A low credit score or unstable income could lead to your application being rejected, which might harm your credit rating.