2020 has been a stressful time for a lot of people, including those who are salaried. No matter how well we were settled in our careers before the pandemic, COVID-19 bought about a time where most of us were in some form of financial trouble or the other.
If you have been undergoing financial trouble for some time now, and you are in the market for a personal loan as a salaried employee, then this article is for you.
In today’s article, we will share with you exactly how you can get a personal loan as a salaried employee in India; let’s get started.
What Is a Personal Loan?
One of the first and most important aspects we need to consider before applying for a personal loan is to beware of its various intricacies.
In simple words, a personal loan is a financial instrument through which you can borrow a certain amount of money, usually in the range of ₹10,000 to ₹25 lakhs, and repay it via a flexible repayment plan and also a low, competitive rate of interest.
Until the introduction of personal loans in India in mid-2019, getting a traditional loan was quite difficult owing to the fact that traditional banks and financial institutions had outdated systems of checking a borrowers eligibility quickly and efficiently, thus contributing to an outrageously tedious and long application process.
However, with the introduction of personal loans, a lot has changed for the better, and these new financial vehicles are quite different in contrast to the traditional loans we are all used to.
Mentioned below are some of the key differentiators between a traditional loan and a personal loan.
- Flexible Repayment Plans
One of the first and most important differences between a traditional loan and a personal loan is the flexibility it offers in terms of repayment. With most traditional loans, the lender usually sets a fixed date of every month when you need to pay the EMI along with the EMI amount that is due every month. And this can be a major issue when you are just starting out with loans, as it forces unwanted financial stress on your shoulders.
On the other hand, with personal loans, you have the option of fine-tuning both the EMI amount you would be comfortable in paying every month along with the date at which you will pay the amount every month. This greatly reduces the amount of financial strain on you and also allows you to enjoy a greater deal of flexibility and freedom.
- Low Rates of Interest
Most traditional loans in India are infamous for the outrageously high rates of interest they charge, which start at least 5%. But on the other hand, most personal loans have competitively lower rates of interest.
For example: Money View, a leading lender in the personal loan space, offers an interest rate of 1.13%.
Money Tap, a leading lender in the personal loan space, offers an interest rate of 1.18%.
Lower interest rates mean that in the long run, you will save quite some money as you will be paying less while enjoying the benefits of a personal loan.
- Instant Disbursal
When we are facing a cash crunch scenario, one of the last things we want is a delayed disbursal of funds by the lender, and this is exactly the case with most traditional loans. Lenders take anywhere between 1 to 2 business weeks to process the loan application and disburse the amount, and since time is of crucial essence here, a short delay can prove to be a major hassle in the long run.
On the other hand, most personal loans come with instant approval and disbursal with turnaround times of less than 24 hours. Thus you can apply for the loan today and have the money in your bank account by the same time tomorrow.
How to Get a Personal Loan as a Salaried Employee?
Now that you know what exactly is a personal loan let us better understand how you can get a personal loan as a salaried employee in India.
Step 1: Research Online
The first and most important step in getting a personal loan is to conduct your research. Go online and research the keyword personal loan India and you will come across a variety of offers from different lenders. Visit each of these links and check the offers that are available. Go through each of the individual details, starting with the interest rate that is being charged, the loan amount available, and also the tenure of the loan.
Step 2: Choose a Lender
Once you have concluded your research, the next step is to choose a lender. While choosing the lender, make sure that they offer not only your desired loan amount but also a rate of interest that is suitable for you.
For example: (Choosed Top 2 NBFCs)
Money View offers personal loans for salaried upto 5 lakhs at an interest rate starting from 1.13%.
Money Tap offers credit lines upto 5 lakhs at an interest rate starting from 1.18%.
Depending on the lender you choose, all three key factors that are loan amount, tenure, and the interest rate charged, will change.
Step 3: Start the Application Process
Once you have chosen the lender, the next step is to start the application process. In this step, start by sharing your phone number and email address with the lender. The lender will share an OTP with you, both on your phone as well as email. Share the OTP with the lender, and you can proceed to the next step.
Step 4: Enter Personal Information
The next step is to share your personal information, which includes your full name, current address, residential address, date of birth, and referral number. Most lenders these days offer referral numbers that you can use to secure a better deal.
Step 5: Share Income Information
The next step is to share your income information. In this case, since you are a salaried professional, share the name of your organization, the number of years of experience you have, and your monthly in-hand income. Once you share these details, move on to the next step and upload your income information, which includes your income certificate, last 3 months bank statement, income certificate if applicable, and also ITR returns for select lenders.
Step 6: Share eKYC Details
Last but not least, share your eKYC or electronic Know Your Customer details. In this step, share your PAN Card number and Aadhar Card number so that the lender can access your credit report.
Once this step is completed, wait for some time as the lender assesses your application. Upon successful approval of your application, you will receive an intimation both on your mobile via SMS as well as on email.
In the next step, enter the loan amount you require and take a close look at the offer extended by the lender. This will include the total amount of interest you are liable to pay, the EMI amount due every month, and the total tenure of the loan.
Take note of the fact that some lenders give you the option of fine-tuning both the EMI amount as well as the date of repayment so that you can ease some of the financial strain.
Ending Lines
Now that you know how to get a personal loan as a salaried employee go ahead and apply for one today. All the best!
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