The personal loan sector witnessed a remarkable growth of around 12.6% during the last year of April after undergoing an economic downturn in the Covid period. Such advances have been a saviour for salaried employees primarily because of their no-end use restriction feature and easy access to considerable funds.
Fortunately, with the progress of technology, availing an instant loan for salaried has become more convenient. However, there are certain factors that one needs to be mindful of to make the most of this credit facility.
5 Best Tips To Acquire An Instant Personal Loan For Salaried
When you borrow personal loans, you can meet a wide range of financial requirements, ranging from medical expenses to funding a child’s education. Although the fund usage flexibility makes it an effective option as you do not have to mortgage your asset, there are certain crucial aspects that you need to know before applying for the credit. It includes:
Tip 1: Apply for loan quantum wisely
A borrower’s repayment capacity or credit profile is a crucial aspect of personal loan eligibility criteria. Almost every financial institution assesses one’s creditworthiness and the CIBIL score before sanctioning the loan amount. Therefore, it is advised to maintain an ideal CIBIL score for a personal loan. With a good score, one can avail substantial loan amount and negotiate with the lender for better interest rates.
However, it is wise to borrow money as per one’s requirements to avoid an unnecessary repayment burden throughout the loan tenure.
Tip 2: Research and compare interest rates
Usually, the interest rates vary across different lenders based on the borrower’s creditworthiness. Besides, it is wise to conduct thorough research regarding the interest rates offered by lenders in the financial market. Furthermore, to ensure flexible repayment, it is better to compare the interest rates online and evaluate EMIs before selecting one.
One of the effective ways to avail of the best personal loan is to maintain a healthy repayment record. With a good credit repayment history, one’s future loan eligibility also increases.
Tip 3: Choose a shorter tenor
Although most lenders offer flexible tenors for an instant loan for salaried individuals, it is wise to go for a shorter tenor to free yourself from financial liabilities quickly. Choosing an extended tenor can make your EMIs affordable, but it will significantly increase your overall interest payment throughout the loan tenor.
For instance, if you apply for a personal loan of Rs.15 lakh at 5% rate of interest and a repayment tenor of 5 years, the EMI amount will be Rs.28,307 and the total payable interest will be Rs.1,98,411. Now, if you decide to extend the repayment tenor by 10 years, the EMI will reduce to Rs.15,910, and the overall interest outgo will be Rs.4,53,169.
So, from the above calculation, it is quite evident that if the loan tenor changes, it will affect the entire repayment strategy and make the repayment amount higher. In this regard, you can take the help of an online EMI calculator and find the right personal loan tenor that works for you.
Tip 4: Prove income stability
In the case of salaried individuals, the employer’s reputation and years of employment play a part in getting an emergency loan approval at a competitive interest rate. However, even if you have started working recently with a small organisation, the loan approval chances are high. The only thing that matters is that the applicant has worked with a renowned company for at least 3 years.
Tip 5: Minimise debt to income ratio
A debt-to-income ratio refers to the percentage of your gross monthly income to pay your monthly financial obligations. A borrower’s loan eligibility increases when they repay the previous credit card loans or bills, etc. Therefore, one can reduce their debt, thereby improving the debt-to-income ratio and loan eligibility.
Potential borrowers must also check the loan payment methods offered by their chosen lenders to avoid repayment hassles during the tenor. Besides understanding these details, one must also know how to apply for such an unsecured credit facility.
How to apply for a personal loan for salaried?
To know how to avail an instant loan for salaried, you need to follow the steps discussed below:
Step 1: At first, visit the official website of your preferred lender and click on “apply online’ to view the application form
Step 2: Input a few details and verify the OTP sent to your registered mobile number
Step 3: Submit KYC and income details
Step 4: Select the loan amount you wish to borrow
Step 5: Submit your application and wait for the representative’s call to discuss the loan proceedings
One can also avail of pre-approved offers extended by reputed financial institutions like Bajaj Finserv on a wide range of secured and unsecured financial products. Dodge the hassle of extensive documentation and simplify the loaning procedure with the pre-approved offers. Mention your name and contact details to check out your pre-approved offer.Therefore, to sum it up, if you are planning to apply for an instant loan for salaried, make sure you check all the additional charges, such as processing fees, penal charges, etc., and learn the terms and conditions before signing up the loan agreement.
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