According to a report, the personal loan book in India stands at Rs.644.6 lakh crore as of March 2021. This growth can be attributed to credit demand among the middle-class pertaining to the current economic situation.
However, most salaried individuals depend on their disposable income to meet urgent expenses. This practice can be troublesome for future endeavours.
Comparatively, a personal loan for salaried extends substantial funds against affordable interest rates. Availing the said credit form will aid a borrower to make effective savings on repayment while enjoying the flexibility of spending.
What are the features of a quick personal loan for salaried?
There are situations when an individual requires urgent funds. In this regard, one can avail a personal loan for salary and manage big-ticket expenses, such as medical emergencies, marriage, education, etc.
Some of the prominent features of a personal loan are:
Flexibility of usage
The best part about a quick personal loan is the flexibility of spending. A salaried applicant can use the fund to pay off their debts. Making pre-payments would help clear the outstanding debts quicker and make effective savings. Besides, one can easily meet big-ticket expenses, such as travelling, marriage or managing liquidity needs.
Lending institutions set eligibility parameters to assess an applicant’s reliability. Ideally, the eligibility parameters against a personal loan are simple and easy to fulfil.
The common requirements include-
● Age- The applicant must be aged between 20 to 60 years old.
● Employment- An applicant must be employed in an MNC, private or public company with a stable income.
● Residency- Individuals must be residing residents of India.
● CIBIL score- A potential borrower needs to maintain a 750+ CIBIL score.
Individuals with a credible repayment history and good credit score can easily convince lenders to levy an affordable interest rate.
Fulfilling these criteria will help a borrower to gain personalised offers and better services.
Potential borrowers must check the important documents required while applying for a personal loan. This will streamline the entire process.
Ideally, lending institutions require applicants to submit minimal documents. They scrutinise the papers before disbursing the loan amount.
The common documents required by lending institutions include-
● KYC papers
● Salary slips of previous two months
● Employee identity card for proof
● Salary account’s last three months bank statement.
Individuals should know that lending institutions may require additional documents depending on their policy.
Ideally, salaried individuals have a fixed pay scale. Most individuals use the fund to pay the liabilities or make fixed savings. However, certain unforeseen events, such as medical emergencies, can force them to depend on their salary.
Considering the current scenario, medical expenses have become way pricier. Depending on the savings can be problematic for future needs.
In this regard, availing small personal loans online will be beneficial. The credit form extends a substantial fund that covers most financial requirements.
Affordable interest rate
The interest rate levied on a personal loan for salary is quite feasible. This makes the repayment structure affordable for salaried borrowers. They can easily initiate savings and make timely payments. This again improves their reliability and credit score.
Many lending institutions disburse the credit against a personal loan to a borrower’s account within 24 hours. However, this feature is dependent on a lender’s policy and the applicant’s creditworthiness.
It is essential to choose a lender that offers lowest interest rates and terms of service.
For instance, trusted NBFCs like Bajaj Finserv provide pre-approved offers to reliable borrowers. These offers make the loan application quick and hassle-free. You can check your pre-approved offer by entering your name and contact number.
Every borrowing obligates an individual into a repayment cycle. Many financial institutions allow borrowers the flexibility to select a tenor of their choice.
Typically, a short tenor reduces the interest burden but increases the EMI outgo. Comparatively, a long tenor will reduce the EMI but increase the interest outgo.
Hence, it is essential to select the right tenor to plan the personal loan EMI repayment better.
These are certain features of quick loans for salaried individuals in India. Nonetheless, an applicant must check the preferred lending institution’s website for updates on eligibility criteria and documentation.