6 Vital Points to Remember if You are a Salaried and Planning to Get a Personal Loan

In today’s era, salaried people can easily get approval for a personal loan. The loan is given based on the salary of the person here, and the salary works as a guarantee that the salaried person can pay up the loan in the given tenure to the bank or financial institutions. Leveraging this asset is vital to fulfill dreams and short-term goals without overindulging in debt.

Applying for a personal loan for a salaried person through an app is pretty simple. All you need is a few documents as per the bank or the service provided eligibility criteria. The documents can be as simple as a PAN (Permanent Account Number) card photocopy, Aadhar Card photocopy, and a bank statement. However, an IFSC Code and bank account number are part of a mandatory photocopy and documents required so that the amount is disbursed directly to the account. For someone who is a salaried employee, they also need to produce three months salary slips.

Personal loan for salaried person is approved based on the salary drawn. Almost 70 to 90 percent of the salary amount can be taken as a loan. The duration may be three months to five years and, of course, can be paid back in equated monthly installments depending on the financial institutes policies. The equated monthly installments or EMIs can be taken out from the salary account. There are some financial organi stations who also offer flexible EMI options such as only one third or half of the salary is paid for the installment or EMI, and the remaining amount of the salary can be utilized for self expenditure.

Personal loan for salaried person also depends on the tenure of employment.

This loan is only for people having a job and who are more than six months in the same company. To apply for a personal loan, the person should satisfy two conditions (1) the person is employed and (2) the tenure of employment has to be more than six months.

So this gets us to the six vital points for salaried people that one needs to keep in mind while applying for a personal loan.

1. What is the purpose of taking the loan? If it’s for a bike constraint, checking the interest rates of an auto loan may be beneficial as the rates maybe more attractive.
2. Keep all KYC documentation in order.
3. Always keep the email address and phone number updated since important financial transaction reminders are sent to your contact information provided.
4. Keep the salary slips handy, best to apply for a loan after you have got a raise or earned a huge incentive because this will improve the loan disbursement amount.
5. Though the loan can be used for multiple purposes, whether it be a home renovation, purchase of a high-value item like a bike or television, do consider the tenure of the loan and how the monthly budget will be balanced since the monthly installments for the loan will be taken from the salaried account.
6. Keep up with the repayment schedule to avoid any penalty.