Getting a Personal loan for Salaried has become much faster with an online approval system. Although salaried employees are the preferred choice for lenders as they have constant income every month, certain things still need to be in place to get instant approval.
If you are applying for a Personal Loan Online, follow the 5 tips mentioned below to increase your chances of getting a personal loan as a salaried borrower. You can apply for an instant personal loan here: https://www.fullertonindia.com/personal-loan.aspx
Tips for Salaried Employees to Get Personal Loan:
- Maintain a steady job at a reputed company
A personal loan is a collateral-free instant loan scheme, and hence you have to be trustworthy and pose no threat of any default. The best way to achieve this trust is to have a steady job at a reputed employer. Whenever you think of applying for Personal Loan Online, bear in mind that the organization you are employed in must have a decent reputation to get faster approval. If you are employed for 1-2 years in a reputed company, most loan providers feel safe and instantly approve the personal loan. The personal loan calculator will give you an approximation of how much loan amount you may get. But. If you are working in a branded company, then you may get a higher loan amount at a lower interest rate than expected.
- Don’t apply for multiple loans simultaneously
Record of submitting multiple loan applications simultaneously on your credit report can negatively impact on CIBIL score. In such scenarios, lenders may regard you as a credit-hungry borrower and hence can reject your personal loan application. Thus, it is advised to compare different lenders using personal loan calculators and finalize one best loan provider to avoid applying multiple loan applications. Personal Loan Online might be the best option to get the required loan with instant approval. Wait for at least 3-6 months before applying for a new personal loan if you’ve applied for one recently.
- Build a good CIBIL score
Your CIBIL or Credit Score is an indicator of creditworthiness. When you are applying for Personal Loan Online as a salaried employee, your credit score will be assessed, and if it is more than the cut-off, then you will get instant approval as you haven’t defaulted on EMI payments previously. Usually, most lenders prefer a good CIBIL score of 750 and above to approve a personal loan for salaried. If you are using a credit card or buying a car through a vehicle loan, ensure the EMI’s are paid in time without any delays, which will give you a decent credit score. Always check your current CIBIL score and try to improve it as much as possible. Many websites that offer personal loan calculators also provide free credit score checks, which you can use to assess personal loan EMI for the different loan amounts and get credit scores to make an informed decision.
- Reduce debt-to-income ratio
Wise borrowers approach a lender who offers a personal loan for salaried with a reduced debt-to-income ratio. Hence, before applying for Personal Loan Online, ensure all pending EMI payments and credit card bills are paid off to reduce the debt-to-income ratio. Loan seekers with a high debt-to-income percentage are considered a potential risk for defaulting and hence are usually not approved for a personal loan for salaried. As a thumb rule, you have to ensure that your debt is not more than 30-40% of your monthly income. If your current debt status is not good, try to refrain from applying for any new loan. Instead, try to reduce the burden by making higher repayments, consolidating your loan, and getting your debt-to-income ratio at a manageable level.
Additionally, you have to use personal loan calculators to assess how much EMI you need to pay in case you borrow a new personal loan in the coming future. It will give a clear picture of your current repayment capability and make your plan better and set a budget that you can easily manage with your current income, and set a time where you can apply for a new personal loan for salaried without worrying about debt-to-income-ratio becoming a hurdle.
- Include all income sources
The ability of the borrower to repay the principal amount and interest ranks high on the priority list for lenders before they approve a personal loan for salaried. To increase the chances of approval, disclose all your income sources along with the regular salary you are currently earning. It may include rental income, part-time income, etc. It will create the required trust among lenders that you can repay the loan within the tenure.
With the above tips, you will be able to prepare well before applying for Personal Loan Online. Once you are aware of the dos and don’ts for securing a personal loan for salaried, the chances of getting instant approval become very high, and you will be able to get your desired loan amount.