Low Income Personal Loan from Co-operative Banks
In case of emergency e.g. medical treatment or unexpected money requirement; people normally arrange money from their own saving or ask friends or relatives for financial support. However it’s not always possible to arrange money at the time of need. And during such times, financing from bank is the best recommended solution. There are many lenders offering personal loan for such need. However getting personal loan is not very easy. Rising interest rate and stricter eligibility criteria makes it difficult to get. Normally when we think of getting personal loan; commercial banks such as ICICI Bank, SBI, HDFC Bank & others first come to our mind. And individuals first contact such prominent lenders for their need. However these banks have strict terms and conditions and chances of loan application rejection is high. This is because, these banks want to stay away from defaulters. But there is another category of bank in India – co-operative bank which offers personal loan. Their income eligibility criteria is low. So even a poor income earning individual has a good chance to get personal loan. Here are three co-operative banks offering personal loan to low income earners. Individuals who are permanent salaried and self- employed or businessman are eligible to get loan. The table below displays minimum monthly income required and maximum loan amount granted:
|Name of Co-operative Bank||Minimum Monthly Salary Required (in Rs.)||Maximum Loan Amount|
|Abhyudaya Co-operative Bank||8000||5 Lakhs|
|The Andaman and Nicobar State Co-operative Bank Ltd.||5000||2 Lakhs|
|The West Bengal State Co-operative Bank Ltd.||2000||10 Lakhs|
|City Union Bank||6500||50000|
- Buying electronic gadgets or appliances
- Repairing or renovation of house
- Medical treatment
- Marriage related expenses and others.
- Loan amount is small
- Low interest rate compared to commercial banks
- If membership is continued for a longer duration then medical benefits are also offered. This benefit varies for each bank.
- Flexible terms and conditions. Not very strict.
- Nil processing fee
- Nil prepayment fee
Hi, I am Nikesh Mehta owner and writer of this site.
I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.