How to qualify for a loan with a low income

If your reason for NOT applying for a loan owes to the fact that your income is low, then you should read further…Irorun has something for you

Yes! Even with a small salary, you can get your loan approved by an AUTHORIZED lender. Here are ways on how you can qualify for a loan with a low income;

It’s possible that you feel that your income from your job won’t be considered good by your lender and will thus lead to a loan application rejection, while this has some truth, there are ways to get ahead. Let Irorun show you how

Income doesn’t just mean money you get from a contracted job, it also includes money you receive regularly, therefore the money you receive from your business, side hustles, assets and investments count as income.

Lenders like to see that there are contingencies (plan B) in place that will enable you to pay back your loan. They want borrowers who they are at least 101% sure will be able to pay back (with interest) any amount of money loaned to them and that’s why you must include other sources of income to boost your chances of getting your loan approved.

If you have an income of, say N50,000 and apply for a loan of N5m with no extra income source, it’d be tough for you to qualify for a loan. No respectable lender would willingly take that risk. Maybe a loan shark would but you’d be paying back for a very long time.

Ethical Lenders do ensure that they do not disrupt your standard of living while giving you loans and for this reason, they have a basis to refuse your loan application especially if you do not have other sources of income or suitable collateral to back you up. We care too much abi?

Applying for a smaller loan of 30k, 50k or 120k is more likely to be approved because your inflow of cash can carry through without a disruption in your standard of living.

Another way to qualify for a loan even with a low income is to have a trusted family or friend that earns higher than you stand as a guarantor.

A guarantor is someone who agrees to hold responsibility for someone else’s debt if they default. This makes the guarantor equally responsible for paying off the loan. Read more on who a guarantor is.

Having a guarantor with a large income will, in the eyes of the lender, be as if you have a large income (since you’ll both be held responsible for the loan). This could make you eligible for larger loans even if you earn a lot less than your guarantor.

“Trust is built with consistency”

And this is true for a lender-borrower relationship as well. No reputable lender is going to give you a large loan on your first loan application, with no credit history you are simply not eligible AKA loan-worthy.

You will do better if you take out small loans from your lender over a long period to build up your credit history and trust with your lender.

A lender that you have had several good interactions and loan transactions with will be more likely to approve your large loan. Fostering trust between you and your lender allows for easy loan approval. Here’s how to build trust with your lender.

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At Irorun, we’ll always show you different routes to seamlessly getting your loan approved.

For further questions or assistance, reach out to us at support@irorun.com now!