Is the pandemic making you stress about your finances? Well, this is a common situation for salaried individuals. Whether it is a medical emergency, vacation, education, or your wedding, a personal loan is a great financial tool to finance all your unwanted emergencies. With a fixed salary, taking a loan can make you wonder whether you will be able to repay it or not.
Even though the personal loan is easily available, certain factors determine your personal loan approval criteria. Let us discuss three important approval criteria for salaried individuals.
Approval of Personal Loan for Salaried employee
A personal loan is an unsecured loan, which means the borrower does not have to pledge any security to get the loan. In such a situation the risk of default increases, which is why the lenders have some criteria based on which persona loan is offered to salaried individuals.
- CIBIL score for a personal loan: One of the main factors responsible for the approval or rejection of personal loan for salaried individuals is the credit score.
A credit score is a numerical expression based on the analysis of a person’s credit files. It determines the creditworthiness of an individual. Its is mainly based on the credit report, information typically sourced from credit bureaus.
A credit score is a combined effect of your past credit history. If in the past you have taken a loan, then your repayment tenure and the on-time repayment also helps in increasing your credit score. A credit score over 700 is deemed good by most lenders.
- Age: Age is also a great factor in determining your loan approval status. Different lenders may have a different approach towards the age factor, mostly for a personal loan, the eligibility criteria mention that individuals between 21-60 years of age are only eligible to apply. The age while is an eligibility criterion, it does not guarantee personal loan approval. If you are at an age in your career where you are earning well, then you are more likely to get the loan approval.
Some firms also offer loan to individuals over 58 years of age. So you can check with the lender before you apply for the loan.
- Job: Job is also an important factor in getting personal loan finance for your emergencies. The job does not mean only having a job that gives you a regular income, instead, there are various factors in a job that can escalate your approval system.
- Salary: Salary is also an eligibility criteria to get a personal loan. The minimum income may vary based on different lenders, mostly the limit is set at Rs 25,000 per month. Individuals below this range may find it difficult to even apply for the loan, and individuals above this, based on their salary will get the loan, but the amount may vary.
- Employer: The status of your employer also impacts your loan application. If you work in an MNC or a Fortune 500 company, then getting a personal loan becomes easier for you.
- Job Experience: Longer work experience means job stability. So, individuals with a long experience have a more likely chance of getting the loan approved. While this is not a necessary criterion, it may impact your application.
A personal loan has a quick and fast application procedure, but if you want it to be hassle-free too, then the above points will ensure that. You have to be qualified for the loan as per the above factors to get the loan. Do not worry if you are a salaried individual, just a little effort from your end will ensure a quick loan approval.