Thanks to NBFC, salaried individuals can now easily obtain personal loans without hassle. With a 100% digital application process, applicants can seek funds to meet their unplanned or planned expenses.
If you are salaried individual, you might consider taking a loan for an array of reasons -renovating a home, for help with additional expenses while paying for higher education, or paying medical bills. You can even consider borrowing for your dream vacation along with other discrete financial requirements.
Most people who earn monthly salaries are frequently contacted by NBFCs and banks that offer pre-approved and easy salary loans. However, once you start the application process, it can, at times, turn into a lengthy approval procedure that never seems to end.
Hence, to make things convenient and faster for you, here are a few tips that will help you get a personal loan without any complications. Take a look:
Table of Contents
Maintain a Good CIBIL Score
Before approving your loan application, every bank or money lender checks your CIBIL score. If you fail to build the minimum score, then banks can reject your application. So, to get an instant loan, improve your credit score by clearing your debts and maintaining a healthy bank balance. In case you need an urgent loan but your score is too low or can’t be improved immediately, opt for P2P loans as they have their credit rating system for loan approvals.
Choose the Right Plan
As you apply for personal loans online, make sure to assess all the terms and conditions carefully. Moreover, check your requirements, interest rates that you can afford, and installments. Sometimes people take a loan of a higher amount which is way more than what they need. They are convinced by the bank’s sales rep who only wants profits. As a result, borrowers have to pay higher EMIs and fees. Even the interest is more. So, do your research and don’t let them fool you.
Meet the Minimum Eligibility Criteria
Getting your loan application rejected can put you in mental distress. Furthermore, it can harm your credit score and you have to go through the entire process again. Hence, it’s better to take the right measures in the beginning to avoid such situations. Start by preliminary check of personal loan eligibility. Evaluate every point and if you don’t meet even a single one of them, then there is no use in submitting your application.
Keep Important Documents Ready
Your documents are important for loan application and approval. So, collect all the crucial documents before applying to avoid further delays and confusion. Common documents required for a personal loan for salaried individuals are a PAN card, signature proof, identity proof, bank statements, and income tax returns. As banks now prefer paperless documentation, you can scan and upload soft copies online.
Prove Stable Sources of Income
Whether you have multiple sources of income or a single, make sure that you provide sufficient proof of stable income to lenders. You need to share how you earn money, be it through rental income, investments, or part-time work. Banks and lenders prefer applicants with stable and high incomes and low financial obligations. So, while applying for an instant loan online, mention all income sources with proof.
Reduce Debt-to-Income Ratio
Banks treat a DTI ratio of over 50-60% as a red flag, which means that the application is likely to get rejected. Therefore, outstanding loans or debts may reduce the chances of a personal loan for self-employed and salaried people. Focus on clearing your debts and opt for EMIs that you can easily pay. Look for loans with flexible repayment options for convenient EMIs. you can use an online calculator to know the maximum loan limit based on your salary.
We are sure that the above-mentioned tips will help salaried employees raise a personal loan more easily and they will make the right choice while applying for a loan. However, make sure to adhere to all the terms and conditions to seek maximum benefits. Considering that the banking system has gone digital, submit your application online as it is faster, seamless, and takes just a few minutes.
Read more: 5 Benefits of Getting a Small Loan
Shashank Modi is a content marketer who works at KreditBee – one of the India’s leading FinTech platform that provides personal loans for salaried and self-employed individuals. Shashank writes to empower his readers so they can take control of their finances and live their lives without worrying about money constantly. His ultimate goal is to write a book to teach kids about finance and budgeting.