These days, NBFCs have made it pretty easy for salaried employees to obtain a personal loan. The purpose of getting a loan might be anything ranging from funding a wedding and financing a home renovation to paying for the medical bills, going for higher education, or arranging a dream vacation. Since they support 100% digital and paperless loan application procedures, applicants can conveniently get funds to meet their planned or unplanned expenses.
These loans’ unsecured nature and no end-use restrictions make them a viable funding choice. What’s more? With a Fullerton India personal loan online, one may get a personal loan of up to Rs. 25 lakhs. They can comfortably pay it through flexible EMIs suitable to their budget. However, it is essential to first qualify for the lender’s personal loan to access the needed funds. Here are a few tips that a salaried employee must follow to get quick approval.
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5 Tips to Qualify for a Personal Loan for Salaried Employees:
- Fulfill the Lender’s Eligibility Criteria
The eligibility conditions vary from one lender to the other, and the applicant must fulfill them to qualify for a personal loan. For instance, Fullerton India has the following eligibility conditions for a personal loan for salaried:
- Age between 21 and 60 years
- Citizenship of India
- Minimum income Rs. 25,000 in Delhi or Mumbai and Rs. 20,000 in any other Indian city
- Employment in a public sector undertaking, proprietorship or or private limited company
- Work experience of minimum one year
- Employment in the current company for at least six months
- Minimum credit score 750 or above
- Cash salary applicants will not be accepted
A salaried employee who meets these eligibility conditions may qualify for a personal loan with the best of terms and conditions.
- Keep Documents Ready
Eligible candidates must submit the required documents. Documents are crucial to a loan application, and gathering them before applying will minimize delays. At Fullerton India, salaried individuals must submit the following:
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- PAN card
- Identity proof, like Aadhaar card, passport, driving license, and voter ID
- Signature proof, like passport and PAN card
- Residence proof, like Aadhaar card, passport copy, or driving license. A utility bill, ration card, or rental agreement will also work.
- Last six months’ bank statements
- Last three months’ salary slips
- Income tax returns or Form 16
The lender supports 100% paperless documentation. Therefore, rather than visiting the lender’s office to submit these documents, one may scan and upload their soft copies online.
- Maintain a High Credit Score
Top NBFCs usually require loan applicants to have a credit score of 750 or more. Building the credit score is pretty easy for those who regularly pay their existing loan EMIs and credit card bills. Individuals with a low debt-to-income and credit utilization ratio quickly build their credit rating. Length of credit history and diversity of credit portfolio are other factors affecting a person’s credit score.
Paying bills consistently, maintaining a low DTI and CUR rate, and diversifying a portfolio with different credit types are sure-shot ways of maintaining a high credit score. Check your credit score before applying for a personal loan and ensure it is above 750 to get quick approval. Remember, lenders often determine the loan amount and interest rates based on the applicant’s credit score.
- Reduce Debt-To-Income Ratio
Outstanding debt may negatively impact a salaried employee’s chances of getting a Fullerton India personal loan online. Lenders often see a DTI ratio of over 50-60% as a red flag, which might result in a personal loan rejection. T Looking for loans with flexible repayment terms is helpful, as they allow opting for convenient EMIs using a personal loan calculator.
Repayment becomes easily manageable when an individual takes minimal loans and choose EMIs according to their salary. Therefore, clear outstanding debt and borrow loans with EMIs suitable to your salary to get easy loan approval. Use a personal loan eligibility calculator to know the maximum loan amount you may be able to get.
- Include All Income Sources
An individual doesn’t need to have only their salary as their sole source of income. They might have other sources from where they earn money. These might include rental income, incoming interest from investments, income from part-time work, etc.
Lenders prefer applicants with a high income and low financial obligations. Therefore, apart from the regular salary, an applicant must mention all income sources in their loan application. It will show the lender that the applicant has enough income to repay the debt. The higher the income, the more are the chances of approval. Adding a close family member with a good credit score and stable income can also help.
The tips mentioned above will help a salaried employee make the right decisions while applying for a Fullerton India personal loan online. Be sure to follow them to enjoy the benefits of an instant personal loan. Salaried employees may start their application process easily online from home or office. The process is easy and quick, as Fullerton offers approval within minutes and disbursal in 24 hours.