Personal loans can conveniently relieve one’s financial troubles, especially when a secured credit facility is not an option. Easy and prompt approvals are the primary reasons for their popularity. Nonetheless, one must have a fair understanding of personal loan aspects for different categories, such as a personal loan for salaried and self-employed individuals.
Such understanding aids in selecting the right loan while restricting financial burden throughout the repayment period. However, before submitting the loan application, here are some of the aspects that borrowers need to follow to make the most of the credit facility.
Things to consider while availing a personal loan for salaried individuals
Ranging from a medical emergency to home renovation, personal loan for salaried can mitigate all sorts of financial requirements. Moreover, its restriction-free usage makes it the most worthwhile option as borrowers do not have to pledge any collateral.
Nonetheless, there are certain essential aspects that one needs to learn before applying for any credit. It includes:
- Choose loan amount wisely
Repayment capability or credit profile plays a crucial role in determining one’s personal loan eligibility. Every leading financial institution will assess the borrower’s creditworthiness and approve the loan amount accordingly. However, it is advised to borrow funds based on actual requirements to avoid any unnecessary burden throughout the repayment period.
- Compare interest rates carefully
Another essential thing to consider when planning to apply for a personal loan is comparing interest rates. Usually, interest rates differ across lenders depending on the borrower’s creditworthiness. Moreover, it is wise to conduct in-depth research regarding interest rates offered by lenders.
Furthermore, to ensure hassle-free repayment, it is better to compare interest rates online and estimate EMIs before selecting one. Other than this, borrowers need to know about the factors affecting personal loan interest rates and apply accordingly.
- Maintain decent credit score
Lenders decide loan amount sanction and personal loan interest rate based on the borrower’s credit profile. Therefore, having a credit score of 750 and above will ensure prompt loan approval on unsecured financing options. In case the score is lower than 750, paying off existing loans, maintaining credit utilisation ratio to a certain limit, not making multiple loan applications are the few things to do to improve personal credit score.
Personal loan eligibility criteria and documentation
Like every other credit facility, intending credit borrowers need to meet eligibility parameters for a personal loan for salaried individuals and submit necessary documents. By meeting these parameters, borrowers can avail of their preferred loan amounts at a competitive interest rate.
Following are the qualifying parameters that borrowers need to meet to avail of the desired loan amount:
- Applicant’s age should be within the age bracket of 21-67 years
- One should be an Indian resident
- Must be employed in a reputed MNC or private organisation
- Applicant’s salary will depend on the job location
Apart from these, one needs to submit the following documents when applying for a personal loan for salaried individuals:
- KYC documents
- Salary slips for the last 2 months
- Employee ID card
- Bank account statement for last 3 months
Note that this list of documents is indicative. Lenders may ask for additional documents during loan processing. Therefore, keeping these documents and financial statements handy when filling out the loan application form, your loan will be approved, and you can get the funds within 24 hours of loan approval.
Application process of personal loan for salaried individuals
Reputed lenders like Bajaj Finserv offer reasonable interest rates, and its digital application process is streamlined accordingly.
Following are the simple steps to apply for the loan:
Step 1: Visit your preferred lender’s website and seek the loan application form
Step 2: Click on ‘apply online’ and input the necessary details
Step 3: Verify the OTP sent to your registered mobile number
Step 4: Input KYC details and income details
Step 5: Select the loan amount you wish to borrow and submit the loan application
After completing the aforementioned steps, one of the loan representatives will connect with you to complete the steps. In this regard, the applicant can make use of a personal loan eligibility calculator to check whether he/she qualifies for the loan or not. However, one must also check the processing fee for a personal loan and other associated charges to avoid additional burdens during the repayment period.
On the other hand, existing borrowers can check pre-approved offers extended by reputed financiers on a range of financing options such as credit cards, personal loans, business loans, etc. With the availability of these offers, borrowers can reduce the hassle of lengthy documentation and save considerable time. Therefore, existing borrowers can check their pre-approved offers by submitting their names and contact information.
To conclude, applying for a personal loan for salaried individuals requires proper planning and execution. By going through the above-mentioned guide, borrowers can apply for the right personal loan and make the repayment process simpler.
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