Availability of a personal loan has become popular in recent times. Due to the improvised standard of living and inflation, an instant personal loan is a pressing priority for salaried employees. Borrowers opt for a personal loan to control unanticipated situations such as medical expenses, to overcome debt traps, or to satisfy their dreams including pursuing higher education overseas, weddings, and dream vacations. It is easier for salaried employees to get and repay a personal loan as the interest rate has dropped in recent times. Lenders are often ready to provide personal loans to eligible salaried employees. Many Finserv Platforms provide an instant personal loan where you can avail of up to 25 Lakh at a starting interest rate of 10.49% with a repayment tenure of 5 years. If you want to know your personal loan eligibility, you should check the personal loan eligibility calculator which is instantaneously available on many websites. Let’s check how a salaried employee gets qualified for an instant personal loan in a hassle-free way.
Eligibility for An Instant Personal Loan
The banks and NBFCs will offer personal loans with different eligibility requirements. To avail of a personal loan, the applicants should meet the following basic eligibility criteria of an instant personal loan:
| Credit Score | A credit score Above 750 |
| Age | The age limit is 1- 65 years |
| Employment Type | Salaried Self-salaried professionals |
| Work Experience | Salaried Employed at the current company for at least 6/12 monthsSelf-Employed professionals Business tenure of at least 3 years (continuous)ITR of last 3 years |
| Maximum EMI | Income up to 65% |
| Minimum Net income (per month) | For applicants from metro cities the monthly net income is Rs. 20,000 For the applicants from non-metro cities the monthly net income is Rs. 15,000 |
| Employment Status | Employed or running a business for 2 to 5 years. |
| Minimum Net Monthly Income | Rs. 5,000 and above |
Note: ( the above eligibility criteria will differ from lender to lender)
What Are the Documents Required to Apply For an Instant Personal Loan?
The salaried employee who is opting for a personal loan should submit the following documents
The documents required for salaried people to Get An Instant Personal Loan Are Listed Below:
| PAN Card |
| ID proofs ( aadhaar card, driving license, voter ID, etc |
| Residential Proof |
| Signature proofs ( passport, pan card, etc) |
| Bank statement for the past 6 months |
| Employment statement |
| Income tax return or Form 16 |
| Salary slip (for the past 3 months ) |
Required Documents for Self – Employed people to get an instant personal loan are listed below:
| PAN card |
| ID proofs ( Aadhaar card, Driving license, Voter ID, etc) |
| Residential proof |
| Bank statement for the past 6 months |
| Signature proofs ( passport, pan card, etc) |
| Employment statement |
| Balance sheet, Profit and Loss Account, and income computation for 2 years |
| Income-tax ( for the past 2 years) |
| IT Assessment or clearance certificate |
| Income tax challan |
| Business proofs ( license, registration certificate, and GST number |
What are the Factors that Impact Personal loan eligibility?
Read Below to know about the factors that affect personal loan eligibility.
Annual Income of the Applicant
This factor is most importantly considered by the lender as it determines the repayment ability of the applicant. For self-employed applicants, the minimum annual income should be Rs. 5 Lakhs.
The credit score of the applicant
Having a credit score above 750 is considered good by banks and financial institutions. If you have a credit score above 900, you may approach your lender to offer an instant personal loan at a lower interest rate. If you have a low credit score below 600, the bank may offer you a personal loan at a high-interest rate.
The Employment type of the applicant
The company you work for and the position you hold are the significant factors that influence the personal loan eligibility of the applicant. Usually, the bank will provide instant personal loans for salaried professionals who are employed in reputed MNC companies and public sectors. Also, banks offer personal loans for professionals and self-employed individuals like doctors, chartered accountants, and businessmen. The reputation of the company you work for is factored in while calculating the credit score, which can later affect your eligibility to get a personal loan.
Debt-Income Ratio
In layman’s terms, the debt-to-income ratio is the percentage of your gross monthly income calculated after paying your monthly debt. Your current debt-to-income ratio is the indicator of your financial health. In the case of high debt-to-income, the lender may hesitate to provide an Instant personal loan as it indicates your incapability to repay the loan.
What are the Steps to Improve Eligibility for a Personal Loan?
Here are some handy tips for salaried people to get qualified for Instant personal loans.
Maintain A Standard Income:
If you are a salaried employee seeking to avail of an Instant Personal loan, it is mandatory to maintain a standard and secured income, since the lender approves your personal loan application solely after examining your Income stability. To maintain a steady income, all you need to do is to pay off your debt correctly, prioritize saving and stay in one job rather than swapping too many jobs often, as this can negatively reflect in the time of the loan repayment period.
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Improvise your Credit Score:
Having a good credit score above 750 is preferred by the lenders and a person who has a score below 750 has less chance to get qualified to get an instant personal loan. Repaying the debts and canceling all the unused credit cards and inactive bank accounts will gradually boost your credit score. Also, you can opt for Credit Improvement services to rebuild your credit profile and get benefits in terms of the Interest period and the repayment period.
Clear off your Debts:
Repaying your credit card bills, education loans, and home loan debt and reducing the use of too many credit cards will significantly decrease your Debt- to- income ratio and help you to get qualified for an instant personal loan.
Limit your Loan applications:
Before providing financial assistance, the lender will scan through your financial history. so it is better not to submit numerous applications or approach too many lenders in a short period, which portrays poor financial health. It is advisable not to apply for more than one loan application for a period of 6 months.
Conclusion:
Having A good credit score above 700 and a standard source of income will facilitate the salaried individual to avail of an instant personal loan. In case you lack any of the eligibility criteria, follow the above-listed guidelines to easily get qualified for an instant personal.
