India’s credit landscape is witnessing a strong affinity of borrowers towards availing of small-ticket credit options. According to updates from the RBI, the personal loan segment has escalated by 12.3% in FY2022, which was 9.6% in FY2021. The robust demand can be attributed to the versatility of the credit option.
Personal loans for salaried employees are customised as per the financial requirement of the working professional, helping them mitigate all sorts of financial gaps effectively. Moreover, salaried candidates are likely to receive approval loan applications due to their steady earnings.
However, before availing of a personal loan, individuals should have a well-rounded idea regarding the application procedure.
Know How To Apply For A Personal Loan For Salaried Employees
Here is the step-by-step procedure that will help a salaried applicant to apply for a personal loan effectively. Borrowers should start the application procedure by comparing different lenders and settling for one based on loan amount, interest rate, repayment term, processing fee for personal loan, customer service and more.
Step 1: Meet the eligibility criteria
The first thing that borrowers should do before availing of the credit option is to adhere to the set of eligibility criteria for salaried employees. Lenders have laid eligibility parameters to assess the borrower’s repayment capacity and determine the loan amount. Not meeting personal loan eligibility criteria will lead to rejection of the loan application.
Here are the eligibility criteria that salaried individuals will have to meet:
- Individuals should be Indian.
- Applicants must fall in the age bracket of 21 to 67 years.
- Salaried individuals must work in a reputed MNC or a public/private company and have one year of minimum work experience.
- Borrowers should have a CIBIL score of 750 and above.
Step 2: Make an online application
Borrowers should visit the preferred lender’s website and click on ‘Apply Online’ tab. Now fill the application form with personal and professional details and submit it.
Step 3: Submit the necessary documents
A personal loan has a simple documentation process; lenders will assess the income status and authenticity of the borrower’s profile from the documents. Incorrect documents will also lead to outright loan application rejection. Here are the primary documents that borrowers have to submit while availing of an instant personal loan for salaried employees:
- KYC papers
- Proof of identity
- Address proof
- Form 16
- Salary slips and bank statements
- Income Tax certificate
- Duly signed personal loan application form
However, borrowers may have to provide additional documents as per lender’s requirements.
Step 4: Await loan approval and disbursal
After submitting the documents, borrowers will receive a loan offer. Once borrowers accept the loan offer, they must select the repayment tenor and get the sanctioned amount in their account.
Step 5: Personal loan repayment
Once the amount has been credited to borrower’s account, an individual can opt for an automated repayment process. Every month on a specific date, the EMI amount will be debited. However, borrowers must ensure that their EMIs don’t bounce, as it may lead to a lower CIBIL score. In this regard, borrowers should know how to calculate personal loan EMIs to help them pay EMIs on time and avoid additional penalties.
Besides knowing the application procedure, borrowers should know the benefits of availing of a personal loan.
Benefits Of Personal Loan For Salaried Employees
Personal loan bestows borrowers with the following benefits:
- Rapid loan disbursal: Borrowers will receive the loan amount in their account within 24 hours of approval. The instant access to funds proves beneficial during monetary urgencies.
- No-end use restrictions: This is perhaps one of the notable benefits of availing of a personal loan. Borrowers are not answerable to the lender regarding the usage of loan amount and can use it for funding medical expenses, child’s education, marriage expenses and more.
- Loan tenor: The repayment tenor ranges from 12 to 60 months, helping one make repayment as per suitability. In this respect, borrowers should choose the right personal loan tenor that works for them in the long run.
- Interest rate: Borrowers are charged a competitive personal loan interest rate, making the EMIs affordable and reducing the cost of borrowing.
However, borrowers must avoid certain mistakes while applying for a personal loan; otherwise, the entire borrowing will prove counterproductive.
Additionally, borrowers can avail the pre-approved offers extended by leading financial institutions available on financial products like personal loans, business loans, credit cards etc. These offers expedite the lending process and save time and effort. Intending borrowers can check the pre-approved offers by submitting their names and contact details.In conclusion, a personal loan for salaried employees is a customised credit option enabling them to fund any of their personal and professional expenses. It is a go-to financing option for a chunk of the population due to its less stringent loan terms and instant availability of funds. However, borrowers must be well versed with the personal loan application procedure and other intricacies to make the borrowing rewarding.
