The world has become a more and more connected place for all of us. And the banks have made it easier for us to access the money we need. Moreover, getting an instant personal loan online for salaried employees is easy. A salaried employee gets paid a fixed salary every month by an employer. However, a few things must be kept in mind before applying for a personal loan.
Usually, a credit lender checks the income proof and credit score of the applicant before issuing a personal loan. And the income should be not less than Rs.21,000/- per month. Therefore, a high credit score and a stable income are enough to get personal loan from the bank. The bank will give you a loan of a specified amount at an interest rate fixed over the loan’s tenure.
Moreover, a credit score helps to check the eligibility of the applicant. The score is generated by the central credit bureau such as Equifax, Experian, TransUnion and CRIF High Mark. It is calculated based on repayment history, credit mix, number of credit inquiries, and length of credit history. It usually ranges from 300 to 900, where 900 is the highest. Therefore, having a high credit rating above 750 will help you get personal loans at comparatively lower interest rates.
Hence, read this article further to have a deeper understanding of personal loans and how you can get an instant personal loan online for salaried individual at lower interest rates.
Why Getting A Personal Loan A Good Idea?
A personal loan is an unsecured loan that an individual takes from a lending institution. The eligibility requirements for personal loans are less stringent than other loans like car loans or home loans. You may want to consider taking out a personal loan for several reasons. If you are a salaried employee with a regular income, you can take out a personal loan to help with all your minor to significant expenses.
Here are some reasons you should consider taking a personal loan if you need immediate financial assistance.
Even if you are a salaried employee, you might have missed out on your loan payments for various reasons which may affect your credit score. In such situations, you can take a personal loan to clear all your pending past and current debts at low-interest rates and improve your repayment history.
If you plan to relocate your home, it can cost you a lot as the moving expenses are high. As a solution, you can get a personal loan to cover all the moving expenses, such as moving your household belongings from one place to another, purchasing new furniture, transporting your vehicles, etc.
Health issues can occur anytime, and if you don’t have sufficient funds to handle such sudden medical expenses, they can become difficult. In such situations, a personal loan is a go-to option because you can get this loan instantly within a few hours to cover all your medical expenses.
Electronic gadgets such as TV, washing machine, smartphone, etc., are expensive to purchase without any instalment. But, you need not make any instalments to buy your desired things as you can instantly take a personal loan and pay in one settlement.
If you are a salaried person planning for your daughter’s or son’s marriage, you can apply for a small personal loan to handle all the wedding expenses such as venue selection, catering, interior decoration, wedding attire, etc.
You might want to remodel or renovate your home for any occasion, such as a wedding or festival. However, the cost of painting, renovating your kitchen, and remodelling the whole house can put a burden on your pockets. So, to handle such expenses without touching your savings, you can avail of a small personal loan.
If you have a dream destination to travel to or go on a vacation for a long time, you need not postpone it any longer. You can easily take a small personal loan and use it to travel to your dream destination without spending from your savings.
Now that you know why you can take a personal loan let us look at the required eligibility criteria and documentation if you are a salaried employee.
Also Read: Instant Personal Loan Through Aadhaar Card
|2||Age||21 to 60|
|3||Employment Status||Employed or Self-Employed|
|4||Minimum Income||INR 20,000 per month|
|5||Work Experience||Min 1 year completed|
|6||Credit Score||Above 750|
For Salaried Employee:
|Sl. No.||Particulars||Documents required|
|1||Proof of Identity||Aadhar Card, PAN Card, Driving License, Passport|
|2||Proof of Address||Electricity Bill, Water Bill, Passport|
|3||Proof of Income||Salaried: Bank statement for the past six months|
|4||Work experience||Employment Certificate for a minimum of One year experience|
Why Are Personal Loans Better Than Other Types Of Loans?
Personal loans are a boon when you need instant funds. And here are a few proven reasons that show personal loans are a better option than other types of loans.
- Zero Collateral: As personal loans are unsecured, you don’t have to submit any assets as collateral to apply for this loan.
- Multi-Purpose: You can use a personal loan for your needs, such as medical expenses, travel costs, wedding expenses, home renovation, large purchases, etc.
- Minimum documents: With no collateral required, there are only a few documents that are mandatory for your KYC certification, such as your Aadhar Card, PAN Card, passport, voter ID, income proof such as payslips and bank statements, etc.
- Digital process: The loan application process is entirely online and paperless. Therefore, you need not waste time visiting your bank to apply for this loan.
- Instant Loan Disbursal: As the digital process, the verification is quick, and you can get your loan amount disbursed to your bank account within 24 to 48 hours.
- Flexible Tenure: You can choose your repayment tenure for a personal loan which usually starts from 6 months to 60 months. And you can repay the loan amount through monthly EMIs.
Steps To Apply For An Instant Personal Loan Online For Salaried
Follow these five simple steps to apply for a personal loan when you are a salaried employee.
Step 1: Visit the official website of your bank or lending institution, or you can also choose to apply using personal loan apps like Buddy Loan app to apply for a loan.
Step 2: Next, check if you meet all the required eligibility criteria before applying for the loan. You can also calculate your EMI by filling in the desired loan amount and tenure to get a clear picture of your total expenses on your loan amount.
Step 3: Once you qualify the required criteria, apply for the loan by filling the application form with your personal and professional details like email address, employment type, monthly salary, etc. and submit the form.
Step 4: Once you have submitted your application form, the verification process will occur. The representatives will cross-verify the information provided with your documents and then approve your loan once the verification is completed successfully.
Step 5: Your loan will get sanctioned instantly, and your loan amount will be disbursed to your bank account within a few hours of verification.
Remember These Before Applying For An Instant Personal Loan Online
Before you plan to apply for a personal loan, you must consider various factors to have a smooth process to get your loan sanctioned instantly.
- Eligibility Criteria: The foremost factor you must remember is to check if you qualify for all the required eligibility criteria mentioned by the bank or lending institution. Once you meet all the required standards, you can apply for a personal loan without hassle.
- Credit Score: It is an essential factor that determines your creditworthiness. This is why lenders check your credit score to know your ability to repay the loan amount on time. They also expect you to have a score above 750 to qualify for the loan. Hence, you can get personal loans at comparatively lower interest rates if you have a high credit rating. If you want to know your credit health, you can check your score using Buddy Score and get the credit report to keep track of your financial situation.
- Documents: As personal loans do not require collateral, lenders ask only minimum documents for KYC verification, such as your Aadhar card, PAN card, voter ID, etc. And you must make sure that you submit documents with accurate information. Moreover, if you are an existing customer, you can get a loan even if you do not have documents, as the lender will already know your financial status and trust you.
- Debt-To-Income Ratio: Lenders consider your Debt-To-Income ratio to know whether you can manage both current and past debts with your current income. And it also gives them an idea of your ability to repay the loan on time. Therefore, you make sure you maintain your Debt-To-Income ratio less than or equal to 50%.
- EMI: Before you apply for a personal loan, plan and budget your required loan amount. You can calculate the EMI and choose the loan amount and tenure according to repayment ability.
Hope this article has given more profound insights into obtaining a personal loan online when you are a salaried employee. With this knowledge, you can make the most of your loan and save money at the same time by obtaining a personal loan online. And don’t forget to check your credit score using Buddy Score and get the credit report instantly to know about your credit health.
So what are you waiting for? Apply for a personal loan online using the best loan aggregator Buddy Loan and visit the official website now.
What is the maximum amount I can take using a Personal Loan?
You can apply for a personal loan up to INR 15 lakhs.
What is the minimum age requirement for a personal loan?
You must be above 21 years of age to qualify for a personal loan.
What is the minimum monthly salary required to apply for a personal loan?
You must have a minimum monthly income of INR 21,000 to apply for a personal loan.
I don’t have a salary slip. Can I still apply for a personal loan?
Yes, you can still apply for a personal loan even if you don’t have a salary slip. However, you must submit Form 16 as an alternative proof of income for document submission.
I have a credit score of 550. How can I improve my score?
You can improve your credit score by using these simple steps:
- Make loan payments on time
- Repay all your outstanding dues and clear your debts as soon as possible.
- Avoid multiple hard inquiries
- Check and review your credit report regularly to identify and rectify potential threats.
- Maintain the credit utilization ratio of less than 30% to your credit limit.