Referring to a Money Tap report, a noteworthy 20.4% rise in the number of personal loans between February 2017 and February 2018 was witnessed. Besides, the CAGR (Compound Annual Growth Rate) of unsecured credits between the years 2015 and 2018 stood at 27%.
The growth in the amount of unsecured credit and the number of personal loan applications sanctioned in a fiscal year indicates that Indian customers are more inclined to apply for a personal loan on salary to meet various financial demands.
Such loans have no end-use restrictions and can be utilised by borrowers for any purpose, be it for home upgrades, purchase of appliances, meeting wedding expenses, educational expenses, etc.
What is a personal loan against the salary?
These are unsecured credits offered by financial organisations to borrowers where they do not have to pledge any property or asset as collateral. Customers who qualify the specified eligibility criteria can avail loans easily and utilise it for their financial needs.
What are the eligibility criteria?
- The age of the borrower should be between 23 years and 55 years.
- The borrower should be an individual drawing monthly salary from MNC, private, or public firm.
- An individual has to be an Indian citizen.
- A CIBIL score of around or above 750 is necessary to avail of such a loan.
- Borrowers should have a minimum salary as specified by financial companies. Normally, the minimum salary for a personal loan mandated by borrowers vary between cities as follows –
− Rs.35,000/month for Bangalore, Pune, Delhi, Mumbai, Hyderabad, Noida, Thane, etc.
− Rs. 30,000/month for Kolkata and Ahmedabad.
− Rs.28,000/month for Jaipur, Cochin, Surat, Nagpur, Chandigarh, etc.
− Personal loan on 25000 salary per month is available for residents of Lucknow, Goa, Bhubaneswar, Jodhpur, Bhopal, Mysore, etc.
What are the documents required?
Below is the list of documents that prospective borrowers need to provide in support of their personal loan on salary application so that they can quickly seek approval.
- KYC documents like Aadhaar card, PAN card, Voter ID, etc.
- Employee identification card.
- Previous 2 months’ salary slip.
- Last 3 months’ bank account statement of salary account.
How much personal loan can I get?
Financial institutions may offer a personal loan of up to Rs.25 lakh to eligible borrowers. However, the loan amount offered to an individual depends on several factors, viz. –
- Credit score – Borrowers should maintain a healthy credit score to be eligible for such unsecured loans. CIBIL score is directly proportional to an individual’s creditworthiness.
- Salary – The salary range is a major determinant of the loan amount a borrower can successfully avail. An individual’s income, or rather residual income after meeting the financial obligations and liable, is equal to his/her repayment capability. Higher-income is more than often considered as a determinant of higher repayment capability. Such an individual can thus pay higher EMIs and avail subsequently higher loan amounts.
Availing a personal loan on salary is now easier as individuals can apply and avail the amount disbursed to their respective savings account within 24 hours. Non-banking financial companies like Bajaj Finserv simplify loan application procedures for its customers by providing pre-approved offers on loans. Such personal loan offers are available on several financial products, including personal loans, business loans, home loans, etc. You can check out your pre-approved offer now by submitting the name and contact number.
Subsequently, borrowers can avail loans for flexible tenors of up to 60 months and convert their loan into easy equated monthly installments. Since these are unsecured loans, borrowers don’t have much on stake, and they can repay the loan amount easily by choosing a flexible tenor. Such personal loans come in handy for individuals because of no end-use restrictions as they can utilise it for medical emergencies, wedding expenses, educational expenses, and many others. Therefore, acquire information about such terms of the loan and seek financial help as and when needed.
Important To Read:
Purpose of The PM Employment Generation Programme
Avail Subsidy Under Pradhan Mantri Home Loan Scheme 2020