Are you finding it difficult getting a personal loan because of your low salary? You can now enjoy the benefits of a personal loan with MoneyTap’s personal line of credit.
Getting a loan or a credit card is easier for high salaried individuals as their repayment capacity is good because of their high income. Banks and financial institutions usually target high-income groups with attractive offers of an instant cash loan or a credit card. The banks determine the ability of an individual to repay the loan amount by doing this simple math:
If the salary of an individual is ₹ 25,000 a month, 55% of the income can be spent on repaying the monthly instalments, the rest can be used for monthly expenses.
But what about people belonging to the low-income group? Can they get a personal loan with a low salary if they need funds for marriage, education or in case of an emergency such as hospitalization? Yes. Personal loans with a low salary can be granted. MoneyTap offers personal loans to salaried employees with a take-home salary of less than ₹ 15,000, provided they meet the eligibility criteria apart from the salary, which includes age, credit score, company worked for, work city, and years spent staying at the current address.
Let’s understand how MoneyTap works for low-income earners through Arjun’s story
Arjun works as a Customer Service Executive at a company in Indore. His monthly salary is ₹ 16,000. The amount is enough for him to take care of his parents and look after the monthly expenses. Each month, he is able to save a few thousand, which he puts in a saving account. He has plans to get married this year. However, he doesn’t have enough money to fund his marriage. He falls short of ₹ 50,000. So, he decides to apply for a personal loan with MoneyTap. Here’s how MoneyTap helps him realise his marriage plans:
- Arjun applies through MoneyTap app for a personal loan, which is instantly approved after the eligibility criteria were met.
- He is given a flexible repayment option considering his financial circumstances.
- He can borrow as little as ₹ 3,000 and as high as his approved personal credit line.
- Even though his approved loan amount is ₹ 1 Lakh, he withdraws only the amount he needs, that is ₹ 50,000.
- MoneyTap’s revolving credit line concept allows Arjun to pay interest on only the amount he withdrew (₹ 50,000) and not on the loan amount that is approved (₹ 1 Lakh).