Get a Personal Loan at Your Mediocre Pay Scale

Personal loans are an affordable alternative to credit cards and they can be very handy in the time of an emergency. Be it a medical crisis or an aspirational purchase, personal loans can be your best bet. However, there are certain eligibility criteria that you must meet to get your personal loan approved. To begin with, your salary is a big factor in determining your personal loan eligibility. However, you can get a personal loan even if you have a mediocre pay scale. You can easily download an online loan app and apply for an instant personal loan, even if you have a mediocre pay scale!

But before you apply for that loan, it is critical that you have a clear repayment plan in place. In this article, you will discover a few tips to get approved for a personal loan.

Get a Personal Loan at Your Mediocre Pay Scale

  1. Improve your credit score

The first thing that the lender would check before approving your loan application is your credit score. Even if you have a mediocre pay scale, having a very good credit score can get your loan application approved within minutes. You can visit any credit bureau online and check your current credit score. In case, you have defaulted on any payments, your credit score can suffer. So, before applying for a personal loan, make sure to improve your credit scores by closing your existing loan accounts and making regular repayments for the open loan accounts. Also, avoid applying for loan at multiple lenders; this will affect your credit score negatively.

  1. Mention any additional income

While applying for a personal loan, one of the most important things to consider is your salary. For most lenders, the minimum salary required for eligibility is Rs. 15,000. However, the higher your monthly income, the larger will be the loan amount that you will be eligible for. So, even if you have a low pay scale, you can mention additional income sources, like if you have a side business, work as a freelancer, get income through rent, or earn through other investments, mention these income sources to your lender. Having multiple sources of income makes you a low-risk borrower and the lender might offer you a great deal on the loan.

  1. Add a co-borrower in your application

When applying for a personal loan, it is always a great idea to add a co-borrower in your application. It can be your parents, spouse or children, if they are earning. The most important thing to consider while adding a co-applicant is to make sure that they have a good credit score and a stable source of income. Having a co-applicant in your application, makes you a low-risk borrower, as the load of repaying the loan is equally divided by both the borrowers. Also, the lender might approve a larger loan amount and for a tenure of your choice. Thus, having a co-borrower brings multiple benefits.

  1. Put up a collateral

Personal loans are unsecured loans that mean you can avail a personal loan without putting up a guarantee against the loan. However, if you have a low pay scale and that’s impacting your loan eligibility, then you might consider putting up collateral, if you have any. You can negotiate with the lender and check out if they provide a loan at a comparable interest rate against your collateral.

  1. Avail a loan against your investments

You can also avail a personal loan at a great interest rate against your investments. Many lenders offer loans against shares or securities against listed securities like bonds, shares, insurance policies or bonds. These loans are very helpful to address an urgent cash crunch. However, this criterion differs from lender to lender. So, make sure to do your market research to find the lenders that offer a loan against your investments at a competitive interest rate. Since, the loan amount is secured against your investment; this reduces the risk associated with the loan. Hence, you can negotiate with the lender for a better interest rate.


A personal loan is a very useful financial tool that comes as a saviour in desperate times. And among the many attractive features of a personal loan, one of the stand-outs is its easy and flexible eligibility criteria. You can avail a personal loan even if you have a mediocre pay scale. However, you must keep in mind a few things before you apply for the loan. Firstly, have a repayment plan in place. Secondly, never over borrow, even if you are eligible for more, apply for the amount that’s needed. Thirdly, opt for auto-debit facility to avoid missing the due date. Fourthly, choose a tenure that’s feasible for you, but keep it as short as possible. And finally, compare the loan offers offered by different lenders through their website or through an online loan app.