A growing number of consumers are turning to personal loans nowadays to cover their higher expenses. Being an unsecured loan that doesn't require any collateral and has a rapid processing period is one of the major factors contributing to the personal loan's substantial surge in popularity.
A personal loan, sometimes referred to as a consumer loan, is a flexible loan that you can utilize to take care of any pressing demands you may have right away. They are offered by financial organizations based on factors such as job history, income level, repayment ability and credit history. You may simply apply for a personal loan from any bank or non-banking financial institution of your choice.
The majority of workers—if not all—rely on their monthly pay to cover their living expenditures. For the typical Indian salaried employee, the monthly salary serves as their sole and primary source of income. In such instance, except from occasional incentives like an annual bonus, the income flow for a salaried employee is essentially stable throughout the year.
Anil Pinapala, CEO & Founder of Vivifi India Finance told Financial express, “Any bank or NBFC that lends money, obviously needs the amount to be repaid. The most important criteria therefore, is to ensure that the borrower has means and intent to repay the loan availed. Salaried employees invariably then have an advantage over non-salaried individuals in terms of easy access to loans.”
Salaried individuals may pay the equivalent monthly installments without much problem and have a greater chance of getting approved for unsecured loans because they have a steady source of income.
Eligibility criteria for salaried employees
- The applicant must be a citizen of India.
- The candidate must have worked for an organization as a paid employee for more than a year in order to guarantee such stability.
- The borrower must be between the ages of 21 and 60 when applying for a salaried personal loan.
- A salary of at least Rs.10,000 must be earned each month by the applicant in order to qualify.
- The candidate should have a strong CIBIL rating. The applicant will not be accepted for a salaried personal loan if they have a history of defaulting on loans with any of the institutions.
Personal loans are particularly helpful to people in these times of inflation and rising living expenses. For a number of reasons, such as a long-awaited overseas vacation, an unanticipated medical emergency, or a wedding, you could require a personal loan. Due to the consistency of their income, salaried employees do have an advantage over self - employed when applying for personal loans.
