The rising gap between expenses and income coupled with increasing aspirations has led to the increased popularity of personal loans in recent years. An instant personal loan for salaried individuals can provide the needed financial boost to fund a big-ticket expense or tackle an emergency. Several attributes like no-end use restriction, instant disbursal, etc., make this credit instrument one of the most popular among Indians.
Working individuals must ensure that they know the various aspects of a lowest rate personal loan, considering how this credit instrument can prove to be helpful.
How to apply for an instant personal loan for salaried individuals?
Salaried individuals can acquire an emergency loan from reputed financial institutions by following basic steps:
Step 1: Fill up an online application form
Individuals need to input their personal, employment, and financial details in the online application form given on the website of the concerned financial institutions.
Step 2: Choose loan tenor and amount
After entering all the required details in the application form, individuals must fill out their desired personal loan tenor and amount. Applicants should note that they must make a well-informed decision while choosing their loan tenor as it is going to determine the payable EMIs. Equated monthly installments (EMIs) are easy-to-understand loan payment methods. A shorter tenor implies that the equated monthly installments will be higher. This is because the loan amount and interest will be repaid over a shorter period of time.
The following example will make this point clear:
Suppose an individual acquires a personal loan of Rs. 10 lakh. If the applicable interest rate for this loan is 13% and the loan tenor is 3 years (36 months), the EMI to be paid will amount to Rs. 33694. If the rate is kept the same and the loan tenor is reduced to 2 years (24 months), the payable EMI will increase to Rs. 47542.
Individuals unsure about their loan tenor can use a personal loan calculator, which is a user-friendly tool readily available online on the website of any reputed financial institution. Using this calculator will let individuals know their payable EMIs beforehand. This will, in turn, help them manage the personal loan EMI repayment efficiently.
Punctual loan repayments help boost an individual’s credit score, which in turn opens doors to several offers. For instance, individuals can benefit from several pre-approved offers extended by reputed financial institutions. Offered on both secured and unsecured financial products, these offers help simplify and accelerate a lending process. Individuals can check their pre-approved offers by providing a few details, such as their name and contact number.
Step 3: Submit the required documents to the financial institution
Since a personal loan is an unsecured credit instrument, individuals only need basic paperwork. Individuals willing to acquire a personal loan for travel, funding a wedding, home renovation, or financing any other personal expense must take note of the various required documents. Usually, the following documents need to be furnished for acquiring an instant loan for salaried individuals:
- KYC documents like Aadhaar, PAN card, Voter ID card, Passport, or Driving license
- Salary slips of the last few months as specified by the concerned financial institution
- Employee ID card
- Bank account statement of last few months as specified by the concerned financial institution
Prospective applicants must note that the above list is indicative, and the financial institutions can ask an applicant to furnish additional documents. Some reputed financial institutions offer doorstep services to collect documents for an instant personal loan for salaried.
After the applicants submit all required documents, the loan is disbursed instantly. Besides being aware of the application procedure, salaried individuals willing to borrow money through a personal loan must also take note of the eligibility criteria.
Eligibility criteria for acquiring a personal loan
An instant loan for salaried individuals can be acquired from a reputed financial institution if the following eligibility criteria are met:
- Must be a resident of India
- Should be a salaried employee of an MNC, a public company, or a private limited organization.
- The age of the individual must be between 21 and 67 years
- Must possess a CIBIL score of 750 or above
Since financial exigencies can appear without any notice, an instant loan for salaried individuals can prove to be helpful in many ways. Hence, individuals willing to acquire this credit instrument must take note of the various details mentioned above.