As per reports, by the end of February 2020, the total quantum of personal loans disbursed in India stood at Rs.25.3 lakh crore and comprised 28% of the total credit. The steady increase in demand for personal loans, over the years, can be accredited to borrower-intrinsic features like restriction-free end-use, simple eligibility criteria for salaried and self-employed applicants, etc. of this financial product.
Additionally, as more financial institutions are offering personal
credit online, the credit is emerging as a preferred digital loan for salaried employees and self-employed personals in general. Though digital loan options have made it more
convenient to avail credits, individuals should become aware of the steps
involved and other requirements to initiate the process seamlessly.
Steps to
avail a digital personal loan
Salaried-employees can avail the best personal loans by following
these steps -
Step 1:
Check eligibility criteria
Finding out the eligibility criteria accompanying the credit
eliminates the risk of one’s application getting rejected. In turn, it also
protects an applicant’s credit report from hard enquiries.
Typically, salaried employees are required to meet these criteria
to be deemed eligible for a digital personal loan –
-
Resident
Indians who are between the age of 23 years and 55 years.
-
Applicants
should have a high CIBIL score, preferably over 750.
-
Should be
an employee of a public company, private company or an MNC.
-
Must earn
the minimum salary requirement as specified by the lending institution.
Applicants may be required to fulfil additional requirements to
avail a digital loan for salaried employees. Also, the same may vary from one
financial institution to another.
Step 2: Go
through the application process
Typically, a digital personal loan can be availed by following these steps –
-
Visit the
official website of the financial institution.
-
Navigate to
the page of personal loan.
-
Enter all
the essential personal, financial and employment-related details to fill the
loan application form online.
-
Select the
required loan amount and suitable tenor.
-
Once all
the essential details are shared, applicants have to wait for loan approval.
Individuals can use a personal loan
calculator to arrive at a suitable tenor and EMI
combination that matches their repayment capability. It must also be noted that
only after the steps mentioned above are completed, financial institutions
initiate the verification process.
Step 3:
Submit the required documents
Generally, salaried-employees have to submit documents specified
by the financial institution to initiate the verification process so that the
loan amount can be disbursed quickly.
However, in case of most digital personal loans, the entire application,
verification and disbursal process is carried out online.
It means applicants do not necessarily have to submit, go through
any paperwork or fulfil additional formalities pertaining to documentation.
Typically, the loan amount is disbursed into applicants’ account within half an
hour of completing the verification process.
Before going through the application process to avail a personal
loan, individuals must check the features accompanying the credit. Doing so, they will be better positioned to
gauge the benefits of a personal loan of their selection more effectively.
Things to
check before availing a personal credit
Here’s what to check before individuals apply
for a personal loan –
●
Quantum of the loan value
Typically, a digital
loan for salaried employees that offer high loan value is considered to be more
useful for meeting financial requirements. Nevertheless, the quantum of
sanctioned loan value depends on factors like – applicants’ income, eligibility
and repayment capacity.
●
Interest rates
Interest type and rate are among factors that decide the
affordability of a loan. Applicants must find out the interest rates charged by
different financial institutions to pick one that facilitates repayment and
does not make availing a loan too expensive. They should also find out how they
can avail the best personal loan interest rates to manage
your financial issues.
●
Additional charges
Besides rates of interest, salaried employees must also find out
the additional charges that accompany the credit. Sometimes, a loan with a
low-interest rate comes with several hidden charges and high processing fees
that make it expensive. To avoid that, they should look for leading financial
institutions like Bajaj Finserv who are transparent about their charges and do
not levy any hidden fees.
The NBFC also provides its customers with pre-approved offers
which make the entire loan-availing process worthwhile. Mostly such offers can
be availed on financial products like personal loans and business loans. Check
your pre-approved offer in a few steps by sharing
your name and contact number.
Notably, applying for a digital loan for salaried employees is a fast and convenient way of availing funds. Regardless, individuals should be careful when it comes to choosing a lending institution to make the most of the loan availing experience and also to ensure easy repayment.
