Why salaried employees are more likely to qualify for instant personal loans
When it comes to an instant personal loan, salaried people are more likely to get it hassle-free. There are several reasons that affect loan eligibility.
In this blog, we will discuss the same which will give you a better understanding.
A personal loan is a type of credit that can be used for several purposes. Whether you want to plan a trip, deal with a financial or medical emergency, or have unpaid debts, this loan can be your savior in any situation. Another benefit of acquiring this loan is that it is unsecured in nature. Consequently, you are not required to provide a guarantee to obtain it.
A salaried individual or a self-employed person can apply for an Instant Personal Loan. However, a salaried applicant has a higher chance of qualifying for an instant personal loan, and the reason behind this is their income stability.
A salaried employee has a stable income, eliminating the worries of loan repayment from the lender. On the other hand, a self-employed person does not have a defined monthly income, which raises concerns among lenders about their creditworthiness to repay the loan.
The most crucial factor that any lender considers before granting an instant personal loan is that the borrower has the means to repay the debt in a timely manner. And, due to their constant earnings, salaried workers generally have an advantage over non-salaried workers in terms of accessibility to loans.
In addition to this, there are other things that affect loan eligibility. Let’s take a look at them.
Factors Affecting Personal Loan Eligibility
Below are the factors that affect personal loan eligibility –
● Employer – The organization you work for has a big impact on your ability to get an instant personal loan because when calculating your eligibility, your company’s reputation is taken into consideration.
● Unpaid debts – Your financial obligations are defined by your unpaid debts. If you have already taken out credit and have large outstanding bills, your lender will be skeptical about repayment. As a result, you may have difficulty obtaining the loan.
● Credit score – A credit score is a three-digit number between 300 and 900. When establishing your eligibility for a personal loan, it is one of the most crucial factors that lenders evaluate. Your credit score shows how creditworthy you are. Maintaining a good credit rating will make it easier to get an instant personal loan. To qualify for this loan, you must have a credit score of 750 or higher.
Eligibility Criteria for Instant Personal Loan for Salaried Persons
Here are some of the common eligibility criteria a person must meet to apply for an instant personal loan.
● You must be an Indian resident.
● Your minimum age must be 21 and the maximum must be 60.
● You must have worked for the current organization as an employee for one year.
● You must not be defaulting in any bank.
● Your credit score must be 750 or higher.
Documents required for an instant personal loan for salaried people
Below is the list of documents.
● Proof of Identity (Aadhaar Card, Passport, Driving License, Voter ID Card)
● Proof of address (Aadhaar card, voter ID card, driver’s license, passport, utility bills)
● PAN card
● Proof of age
● Bank statement for the last three months
● Pay slips for the last three months
● Form 16
Instant personal loan fees
Several financial institutions offer personal loans at different fees. You can compare them based on their interest rates, processing fees, and other associated fees to choose a better option.
An instant personal loan is the best option to get rid of any financial burden. Moreover, with the help of the information mentioned above, you will be able to learn about the eligibility criteria, the documents required and the different interest rates for this loan. As a result, you will be able to select the best financial institution for your needs.
Author Bio: Vinod Gill is a content writer specializing in financial and banking topics. He is a digital marketing consultant, blogger and co-founder of Ecompany.in