As per a report, 77% of the working Indian population depends on personal loans to make ends meet. The necessity of personal financing can include planning for a summer vacation in foreign countries, funding urgent medical expenses or a child’s higher education.
Here, salaried individuals get special preference in case of personal loan approvals as lending institutions get the assurance of uninterrupted monthly payments. The chances of faster loan approvals and benefits multiply when one applies for a personal loan for salaried from trusted and reputed banks or NBFCs.
Eligibility criteria of personal loan for salaried employees
A personal loan for salaried is an instant online personal loan specifically designed for salaried individuals. Individuals employed at private, public limited companies or multi-national companies can apply for this financial product.
Following are discussed the essential eligibility parameters that salaried individuals must fulfil in order to obtain a personal loan.
- Applicants must be salaried employees,
- They must be a resident of India,
- They must be a salaried employee at a private, public limited company or a multi-national company,
- Applicant’s age must range from 21 years to 67 years,
- They must have a CIBIL Score of 750 or above.
To get an estimate of how much personal loan can one get on his/her salary, one can utilise a personal loan eligibility calculator.
Currently, the availability of such online tools makes the process of checking eligibility easier.
Process to check personal loan eligibility for salaried employees
Borrowers have to visit the official website of the lender and navigate to the personal loan eligibility calculator and follow the steps mentioned below-
Step 1 – Salaried individuals have to select city, employer, date of birth
Step 2 – Next, they have to enter monthly income and monthly expenses in the respective fields. They can adjust the slider to set values.
Step 3 – The result will appear on the screen.
Several factors affect your personal loan approval, and one of the crucial factors is eligibility. Hence, it is imperative to check eligibility parameters before applying for the same.
If salaried individuals find out their personal loan eligibility does not match the required loan amount, they can follow the tips mentioned below to increase the same.
Tips to improve eligibility for a personal loan for salaried individuals
Here are some tips that can help salaried individuals improve their eligibility for a personal loan:
- Salaried individuals must maintain a high credit score,
- They must pay existing debts and credit card bills,
- They must include all income sources while applying for a personal loan,
- They must limit multiple loan applications within a short span of time,
Documents required for a personal loan for salaried employees
Several important documents are required while applying for a personal loan. Salaried individuals must submit the documents listed below-
- Employment ID
- Bank account details
- KYC documents (such as Aadhaar card, PAN card, Voter ID, passport)
Besides knowing the personal loan eligibility and document requirements, borrowers must also learn its features and benefits.
Features and benefits of personal loan for salaried individuals
Here are some features of personal loans for salaried individuals:
- High loan amount
Salaried individuals can avail a high-value personal loan depending on their incomes. Higher loan amount thus helps salaried employees manage personal expenses, such as funding a child’s education, marriage, and sudden expenses like medical emergencies very easily.
- Competitive interest rate
Eligible salaried employees can settle for a competitive personal loan interest rate. It is one of the important factors that decide the total cost of borrowing. Therefore, if borrowers can match the eligibility parameters set by the lender, they can significantly bring down the borrowing cost and save substantially.
- Faster loan approval
The involvement of fewer documents results in faster personal loan approval for salaried employees. Thus, salaried individuals need not wait for several days to know the status of their applications.
- Quick disbursal
The assurance of quick personal loan disbursal is a massive relief for salaried individuals. This feature enables salaried employees to manage emergency cash crunch situations easily without waiting for payday.
Please note that there are several charges associated with personal financing; hence salaried individuals must learn the charges, such as processing fees for personal loans, beforehand to assess the total cost of borrowing.
Some lenders provide pre-approved offers to simplify the loan process. These offers are also available on a wide range of financial products, such as personal loans, business loans, credit cards, etc. Individuals can check their pre-approved offers by entering names and contact details.
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