Emergency financial obligations could be overwhelming, considering salaried individuals
earn a fixed monthly income.
During such situations, a personal loan could help them meet a host of expenses at ease.
With zero end-use restrictions and prompt loan processing, personal loans continue to
thrive with a growth rate of 13.5% YoY till March 2021.
However, before getting a personal loan for salaried employees, individuals must stay
informed about a few aspects.
Eligibility criteria to obtain a personal loan for salaried employees
Eligibility criteria of a personal loan vary from lender to lender. However, the fundamental
parameters correspond to the below-mentioned factors:
● Salary
Individuals must have a monthly salary of at least Rs. 10000 to avail a personal loan from
any leading financial institution. The minimum salary requirement gets higher in metro or
large cities.
● Applicant’s age
Most lenders approve loan applications of applicants who fall between the age bracket of 20
and 60 years.
● CIBIL score
CIBIL score is one of the most critical parameters that determine loan application approval.
This 3-digit numeric code represents a borrower’s creditworthiness depending upon his/her
overall financial health. The ideal CIBIL score is 750, and the higher the number, the higher
are the chances of loan approval.
For example, someone with a CIBIL score of 800 seeking to borrow money will be eligible to
get instant loan approval for a high-value loan quantum at a lower interest rate. On the
other hand, someone with a CIBIL score of 300 will not be considered a trusted borrower by
the lender. As a result, he/she might face loan application rejections.
That said, you can still get a personal loan when you have a bad CIBIL score. However, in
that case, the financing will be disbursed with high-interest rates and stringent
requirements.
Maintaining a high CIBIL score and meeting the eligibility mentioned above also bestows
other attractive personalized offers for borrowers.
Such borrowers can get pre-approved offers extended by leading NBFCs like Bajaj Finserv.
These offers streamline the application procedure and facilitate hassle-free borrowing. They
are available on a host of financial products such as business loans, personal loans, etc. You
can check your pre-approved offer within seconds by entering your name and contact
details.
Documents required to apply for a personal loan for salaried employees
Applicants also need to submit some important documents while applying for a personal
loan. Find them below:
● Proof of identification
● Proof of residence
● Bank statement
● Latest salary slips
● Passport-sized photograph
● Duly filled in the application form
Applicants must note that the documents required may vary from lender to lender.
Things to consider before applying for a personal loan
Since personal loans are collateral-free, one should remember that lenders tend to perform
thorough checks on the borrower’s profile regarding income, age, employment, and credit
score.
A personal loan can be utilized for varied purposes after considering the following factors:
● Loan tenor and amount
Before applying for a personal loan, one of the most crucial things to know is the loan
amount that one needs to borrow. Prior calculation of the amount and learning the loan
payment methods would help individuals easily pay off the debt.
● Interest rate and other fees
Various factors affect your personal loan interest rate that you should be knowledgeable of.
After determining the loan amount and tenor, individuals must check out the interest rate
to determine the overall affordability of the loan.
Note that even a slight difference in interest rate could significantly affect the borrowing
cost. Regarding this, one can use an online Personal Loan EMI calculator and determine the
affordability of their credit.
● Loan processing time
Individuals often opt for a personal loan to address financial emergencies. Thus, knowing
the total loan processing time is crucial before availing of this credit. Borrowers need to
approach a lender that ensures fast loan approval and disbursal.
● EMIs
Before taking a personal loan for salaried employees, borrowers should analyze their cash
flow and other financial obligations. Since EMIs are monthly payments that one needs to
fulfill to repay the loan amount, it is crucial to ascertain that their monthly income
accommodates the installments as well as regular personal expenses.
After considering these points, it is essential that borrowers lookout for a trusted financial
institution. Consider all possible factors affecting loan affordability before opting for a
personal loan for salaried employees.
