A Personal Loan is a type of unsecured loan that can be availed for various purposes, such as wedding expenses, medical emergencies, education expenses, travel, home renovations, or debt consolidation. It is a popular financial product among salaried individuals who require immediate funds for their personal needs. If you are a salaried individual, Personal Loan or Salaried Loan is the best option to meet any additional financial requirements.
In this article, we will provide a guide for salaried individuals to help them understand the Personal Loan process and make an informed decision.
– Check Your Eligibility
The first step in applying for a Personal Loan for Salaried Employee is to check your eligibility. You should meet the minimum eligibility criteria for Personal Loans where you must be between 24 and 58 years of age, should be in current employment for a minimum of six months, and should have a minimum of 24 months of total work experience, your monthly net take-home salary should be a minimum of ₹40,000, you should have a credit score of 750 or more. These eligibility criteria may vary from lender to lender. Salaried individuals need to have a regular income and a good credit score to be eligible for a Personal Loan.
– Choose the Loan Amount and Tenure
After checking your eligibility, you need to decide on the loan amount and tenure that suits your requirements. The loan amount and tenure depend on various factors such as income, expenses, repayment capacity, and the purpose of the loan. It is recommended to borrow only the amount you need and can repay comfortably within the specified tenure.
– Compare Lenders and Loan Offers
Once you have decided on the loan amount and tenure, the next step is to compare the lenders and loan offers available in the market. You can compare the interest rates, processing fees, prepayment charges, and other terms and conditions of various lenders to choose the one that suits your requirements.
– Submit the Application and Documents
After choosing the lender and loan offer, you need to submit the application form and the required documents to the lender. The documents required for a Personal Loan application include an Aadhaar/PAN Card, Current address proof (Passport/Utility bills/Rent Agreement), Latest salary slips and salary credit bank statements from the last three months, employment proof, such as official mail ID confirmation /Emp ID Card. The lender may also require additional documents at the time of loan application based on their internal policies.
– Get the Loan Approval and Disbursal
Once the lender verifies your application and documents, they will approve the loan if you meet their eligibility criteria. The loan amount will be disbursed to your bank account after deducting the processing fees and other charges. The disbursal time may vary across lenders, but generally, it takes two-seven working days for the loan amount to be credited to your account. However, with the introduction of digitalization, the loan disbursement process is quick. There are a few lenders who claim loan disbursals within a few hours.
– Repay the Loan
After the loan disbursal, you need to start repaying the Salaried Loan as per the agreed-upon terms and conditions. The repayment can be done through equated monthly instalments (EMIs), which include both the principal amount and interest. It is recommended to repay the loan on time to avoid late payment charges and negatively impacting your credit score. You can use an online EMI calculator to calculate your monthly EMIs beforehand. This will help you plan your EMIs using three major factors such as your desired loan amount, loan tenure, and rate of interest. You can find such online EMI calculators on the official website of the lender.
Conclusion
In conclusion, Personal Loans are a popular financial product among salaried individuals who require immediate funds for their personal needs. It is essential to check your eligibility, choose the loan amount and tenure carefully, compare lenders and loan offers, submit the application and documents, get loan approval and disbursal, and repay the loan on time to make the most of this financial product. By following these steps and seeking expert guidance, salaried individuals can make informed decisions and manage their personal finances effectively.