Gross Income Less than Rs.10,000 – Personal Loan from SBI, Canara & others
|Name of Bank and Perosnal Loan Product||Monthly Income Required|
|State Bank of India (Xpress Credit)||Rs. 5,000|
|Canara Bank (Consumer Loan)||Rs. 6,000|
|Abhyudaya Co-operative||Rs. 8,000 (after EMI payment)|
|Canara Bank (Canara Budget)||Rs. 10,000|
|Canara Bank (Teachers Loan)||Rs. 10,000|
|State Bank of India||Rs. 10,000 (rural/semi-urban)|
|HDFC Bank||Rs. 15,000|
|ICICI Bank||Rs. 15,000|
|Axis Bank||Rs. 15,000|
|Fullertoan loan||Rs. 15,000|
|Punjab National Bank||Rs. 15,000|
|Dena Bank (Suvidha)||Rs. 15,000|
Benefits of Personal Loan
- Is the best solution for meeting emergency money requirement
- It is easy and quick to get. Especially for working professionals it becomes easier due to regular monthly income, which lenders check while evaluating credit worthiness.
- Tenure can be reduced.
- It can be prepaid but with extra charges, in some cases.
- Money can be used for any purpose.
- These are unsecured meaning applicant does not have to keep any collateral with the lender. Although there are ways to get personal loan against securities.
How can low income earners stop themselves from falling into the personal loan trap:Bank is at the profit: Remember that, personal loan is the most profitable business for the lender. This is because of the high interest rate charged in addition to the other charges. Although it carries highest risk for the lending financial institutions but that risk is balanced through high interest rate. And also banks have rights to recover money from the borrower through various means. Should be the last option: Personal loan should be the last option for your money requirement because the EMI can hurt your budget badly. Before seeking the loan, try to ask for money from your friends/relatives and in return pay them interest which is small compared to the high rates charged by the banks over the money granted. This way both the parties at the advantage. Never agree on paying less EMI in return of long tenure: This looks enticing initially but is very costly when you calculate the total money you have to shell out of your pocket at the end of the tenure. It is always recommended to end any credit line in a short time frame. Longer the tenure, higher the money you will end up paying. Be aware of extra charges which are hidden in the loan documents: In addition to the EMI, there are many other fees charged by the banks. Although these fees are not hidden but are actually never disclosed at the time of application or are not paid attention by the applicant. Such fees further increases the cost of the loan. The charges include – processing fees, late payment, pre-payment, cheque bounce, etc. Try other alternatives for personal loan: Apart from commercial bank, poor income earner can also approach co-operative banks for personal loan. Interest rate and income eligibility criteria is low compared to large banks. Peer to peer lenders is another solution for the loan. Finally signing on dotted line means you are caught in the trap: Because after signing, it becomes extremely difficult to go and win the legal battle against big financial institutions. Chances of winning the legal case are actually very low. And in addition, you will have to pay money to the lawyer, etc.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries.
He has authored many articles on this site (allonmoney.com).