Usually, salaried professionals have a limited source of income which may not be adequate to take care of necessary monetary requirements, especially during emergencies. In such cases, an instant loan for salaried can be an effective financing option.
However, before applying for such an emergency loan, individuals must stay informed about certain aspects to avail of the credit without hassles.
Eligibility Parameters of Personal Loans for Salaried Applicants
Personal loans are among the most popular financing options used to meet varied expenses, including debt consolidation, medical expenditures, higher education, etc. Due to the flexible eligibility criteria, personal loans witnessed a robust y-o-y growth rate of approximately 13.5%.
However, individuals need to meet certain eligibility parameters to avail substantial funds, which vary across lenders. However, the fundamental parameters include the factors mentioned below:
Individuals must be employed in a leading MNC or private organization with a stable monthly income. Although the salary figure of the applicant varies depending on the job location, lenders approve the loan amount assessing this aspect.
- Applicant’s age
Usually, lenders approve an instant loan for salaried applicants within the age bracket of 21-67 years. Besides, one should be an Indian resident.
- Credit score
The CIBIL or credit score is an essential parameter that lenders consider before approving a loan. This score determines a borrower’s creditworthiness and repayment capacity. If an applicant’s score is above 750, it is deemed healthy, and they will have better chances of loan approval.
For example, suppose someone with a credit score of 800+ seeks to borrow money. In that case, they will be eligible to apply for a sizeable loan quantum and can negotiate for affordable interest rates.
On the other hand, an applicant with a poor credit score below 300 is not considered a reliable borrower and can face loan application rejection. However, one must also know how to get a personal loan with a bad CIBIL score.
Maintaining a healthy credit score and meeting the eligibility parameters mentioned above also give way to avail exclusive pre-approved loan offers. Such offers are extended by leading financial institutions like Bajaj Finserv on a wide range of financing options, such as business loans, personal loans, credit cards, etc. You can check your pre-approved offer by mentioning your essential credentials.
Documents Required for an Instant Loan for Salaried Applicants
Intending applicants are required to submit the following documents to ensure a hassle-free loan application –
- Residence proof
- KYC documents
- Salary slips of previous 2 months
- Bank account statement of last 3 months
After submitting the income proof, lenders verify them and ensure a hassle-free process with quick loan approval. However, one must note that the documents may vary across lenders.
Things to Consider Before Applying for a Personal Loan
Since personal loans are unsecured advances without collateral requirement, lenders conduct a stringent check on a borrower’s profile regarding employment, age, income, etc. By considering the following factors, applicants can avail of a personal loan-
- Interest rates and associated charges
There are certain factors affecting personal loan interest rates that one should be aware of. Determining the applicable interest rate against a loan is crucial, resulting in overall affordability. Note that a bit of change in the interest rates can significantly impact the loan cost.
- Assess affordability
Before planning to apply for a personal loan, applicants need to assess their cash flow and other financial liabilities. In addition, since individuals need to pay EMIs to repay their credit, it is crucial to confirm that the monthly income successfully accommodates the EMIs and personal expenses.
- Repayment tenor and borrowing amount
Before applying for such a credit, it is essential to determine the exact loan amount needed. Calculating the amount beforehand and comparing it with the loan payment methods will allow borrowers to repay conveniently.
Moreover, choosing a suitable Loan tenor for repaying the loan is essential to avoid any financial burden in the long run. However, one must note that choosing a shorter tenor will increase EMIs, but the interest outgo will significantly reduce and vice versa. In this regard, one can use a personal loan calculator and determine a suitable tenor for the repayment.
Therefore, borrowers must seek a reliable financial institution after knowing the personal loan eligibility criteria and considering the pointers mentioned above. It is wise to factor in all the essential tips before applying for an instant loan for salaried to avoid complications in the future.