Why Is Getting A Personal Loan Easy For Salaried Employees?
Business

Why Is Getting A Personal Loan Easy For Salaried Employees? 

Instant loans are an absolute necessity for anyone. However, a fixed monthly income cannot always provide for all of one’s dreams and aspirations, let alone for situations such as medical emergencies. Therefore, lenders must consider various factors when approving a loan. For example, since salaried employees have a consistent source of income, approval may be more straightforward for them.

A personal loan can assist you in times of need or even when purchasing valuable assets and can help you improve CIBIL score over a short period. Because of their higher job security, salaried applicants working for a government or PSU entities to prefer. Many lenders also provide preferential interest rates to those who work with the government/PSUs and top corporations/MNCs.

When you take a loan, the lender will first consider your salary because there is a much higher chance that you will repay the loan, and if you have a good CIBIL score, the lenders will be more impressed when they do a CIBIL check. Therefore, salaried employees have the full potential because they can easily demonstrate to lenders that they are competent in paying off the loan due to their fixed income.

Even among salaried employees, a person with more service and job stability is likelier to achieve loan approval. Age, monthly income, job profile, employer profile, credit score, and other factors to consider when setting interest rates for salaried applicants.

What are salaried professionals’ eligibility criteria for a personal loan in India?

The eligibility criteria may differ from one lending institution to the next. However, most lenders adhere to the eligibility criteria listed below to better understand the borrower’s ability to pay back the loan amount and determine the amount they can offer to the salaried professional.

  • Age: Minimum 21 to 60 years
  • Indian nationality; Indian resident.
  • A monthly income of at least Rs 15,000 is required.
  • A credit score of 750 or higher can increase the likelihood of obtaining a personal loan for salaried individuals at a lower interest rate.
  • Employees in private limited companies or public sector undertakings with at least 12 months of experience.

Documents needed from salaried workers to get a personal loan:

In addition to the application form, the salaried professional must have the required documentation on hand when applying for a personal loan:

  1. Passport-size photographs
  2. Identity proof: Any of the following documents: PAN card, Aadhar card, Voter ID, passport, driving license, and other identification documents
  3. Proof of residency: Lease contract, an electricity bill, a phone bill, a passport, etc.
  4. Salary statements: Salary slips from the previous three months are required to ensure that your current income is not less than what is needed to qualify for a personal loan.
  5. Income paperwork: A copy of the last three months’ bank statements will be required.

It’s no longer difficult for salaried workers to obtain a personal loan. In addition, the process and eligibility criteria have been redesigned in such a manner to make it easier for employees to deal with unexpected emergencies. Just make sure to check your CIBIL score through the CIBIL check app.

If you are someone who has been working for a few months now, taking a personal loan is an excellent chance to build or improve CIBIL score.

 

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