The cost of living keeps rising due to inflation, and more and more people struggle to pay their bills at the end of each month. Many professionals now turn to personal loans to meet planned and unplanned expenses. Without using credit cards, quick personal loans are an excellent method to consolidate debt or pay for other needs.
Employees who earn a salary can often take out loans or credit cards to finance their expenses.
It is because of their high likelihood of repaying the debt, thereby avoiding default. Since the job entails regular income, a salaried employee is less likely to skip payments or become delinquent on their debts.
Why is there a higher likelihood that salaried employees will be approved for personal loans?
A salaried or self-employed person can make an instant personal loan application. However, a salaried candidate is more likely to be approved for an urgent personal loan because of their stable income.
Salaried employees usually tend to have better credit scores and less risk of default due to their steady incomes.
In addition, having a steady job means that these individuals are likely to spend responsibly and remain disciplined throughout the repayment period. These two things make them ideal candidates for obtaining quick personal loans.
The ability of the applicant to make timely debt repayments is the most important criterion that each lender takes into account before approving an instant personal loan.
Additionally, salaried individuals often have greater loan accessibility than non-salaried individuals due to their reliable source of income.
With Fullerton India, salaried employees can acquire personal loans up to Rs. 25 lakhs, with flexible repayment tenures at competitive interest rates and a quick loan disbursal.
What is the personal loan eligibility checker for salaried employees?
Personal loan eligibility checkers for salaried employees are different for different lenders.
1. Annual Income
Annual income is crucial in determining whether a salaried employee is eligible for a personal loan or not.
The likelihood that an employee will be approved increases with income, and vice versa. It is because it shows the repaying capacity of the employee.
With Fullerton India, salaried employees must have a minimum salary of Rs. 25,000 per month in Delhi/Mumbai and Rs. 20,000 per month in other cities.
A person’s ability to get a quick personal loan is significantly impacted by the company they work for since their eligibility is determined in part by their employer’s reputation.
3. Credit score
A credit score is a numerical representation of the credit repayment history of an applicant. Good credit scores show people who have paid back their debts, while bad credit means people who have defaulted on the payments.
The credit score determines the borrowing capacity and affects how much one will pay back in interest. If a person’s credit history is clean and their payments are on time, they have a good chance of getting approved.
With Fullerton India, salaried employees must have a minimum credit score of 750.
4. Outstanding debts
A person’s unpaid debts determine their financial responsibilities. A lender will be sceptical about the repayment if a person has previously taken out credit and has not repaid them.
Consequently, getting a personal loan can be challenging for such a person.
5. Place of residence
A person’s social standing may depend on the city or location in which they reside. It may also be essential to the lender in determining one’s eligibility for a personal loan to know if their residence is rented or owned to comprehend their financial commitments.
Why is a personal loan beneficial for salaried employees?
A personal loan is beneficial for salaried employees for the following reasons:
- After obtaining a personal loan, there are no limitations on how the money may be spent.
- Personal loans can be disbursed instantly for their immediate needs.
- There is no need for collateral to qualify for a personal loan.
- Salaried employees do not have to provide more documentation, and the interest rates are also competitive.
Obtaining a personal loan is no longer difficult for those who earn a salary. The procedure and eligibility requirements have been simplified to make it easier for employees to meet unforeseen expenses.
Employees need not suffer financial stress because lending institutions are providing personal loan at affordable interest rates. However, before opting for a personal loan, choose a reliable lender and compute the EMIs on the personal loan EMI calculator to make an informed decision.