Irrespective of whether an individual is salaried or self-employed, he/she can apply for Personal Loan. Personal Loan for self-employed has few different requirements as compared to a salaried individual. In the case of a Personal Loan for self-employed, the rate of interest will be slightly higher. A self-employed person is someone who earns from various sources of income and is not employed under someone. For example, doctors, Character accountants, and entrepreneurs can be called self-employed individuals if they are running their own business. Whereas a salaried individual receives a fixed pay check regularly from an employer.
Here are a few reasons why a salaried person should apply for a Personal Loan:
- Collateral-Free Loan: A borrower can apply for a Personal Loan without pledging any assets as a security. This acts as the biggest advantage in case the borrower does not own any fixed asset. Also, collateral-free loans are faster to process and are easily disbursed.
- Easy Documentation Process: Every Loan process involves a documentation process as for loan approval. Documentation acts as evident proof of all the information provided by the borrower. With online documentation, a borrower can easily submit the documents online at their own convenience. This makes the entire loan process much more efficient and rapid. Here is the personal loan document list that you must submit to the lender: KYC documents like Aadhaar/PAN Card, current address proof (Passport/Utility bills/Rent Agreement), latest salary slips, and salary credit bank statements from the last 3 months, proof of employment, such as official mail ID confirmation /Emp ID Card.
- No Restriction on Usage: A Personal Loan can be used for various purposes such as weddings, medical emergencies, higher education, home renovation, etc. This makes it a major advantage for a salaried person as he can use the loan as per his needs and requirements.
- Simple Eligibility Criteria: Easy-to-meet eligibility criteria allow both salaried as well as self-employed persons to apply for Personal Loans. Following is a few of the basic eligibility criteria that you should meet to apply for a Personal Loan. While applying for a loan you must be between the age of 24 to 58 years. Secondly, you must have work experience of more than 6 months with the current company. Thirdly, you should earn a monthly income of at least ₹20,000. Lastly, your credit score must be more than 750 and more.
Note: Please note that the above-mentioned criteria might differ from lender to lender.
- Instant Approval and Disbursal: With the introduction of online loan application, it is easier for a borrower to apply for a loan instantly. You can apply for a Personal Loan in the comfort of your home. Once you apply for a Personal Loan, the following procedure such as documentation, and disbursement will be online. If all the steps are correctly followed, the loan amount will be disbursed directly to your bank account within hours.
Uses of Personal Loan
– Wedding
Salaried individuals face problems managing their finances as they receive a fixed income. Personal Loan for wedding allows the borrower to manage their finances as the loan amount can be used for paying the wedding expenses. A wedding involves several activities which can highly impact the finances. Hence, using a Personal Loan for a wedding, a borrower can pay expenses such as booking a wedding venue, transportation expenses, food, wedding clothes, and other miscellaneous expenses.
– Home Renovation
If you have been planning to renovate your home for quite some time, a Personal Loan for renovating your home can be right for you. A personal Loan helps you to cover all the expenses of home renovation without worrying about going over budget. You can repaint the entire house and give it a fresh look, renovate your kitchen, add a balcony in your house, or additional washroom or even add modern furniture to your hall.
– Education
Higher education has transformed over the last few years, especially in terms of valuation. Today, you have to pay more for a similar curriculum. Also, taking an Education Loan can burden you and your child with usage restrictions and high-interest rates. A Personal Loan for education is the best possible choice to manage all the expenses.
As a borrower, you can use a Personal Loan for travel, medical emergencies, etc.
How to apply for a Personal Loan?
You can apply for Personal Loan online by following the below-mentioned steps:
Step 1: Visit the lender’s official website and search for Personal Loan
Step 2: Click on ‘Apply Now’ and fill up the loan application form
Step 3: Enter basic details and upload all required documents
Step 4: Await verification and assessment of the application
Step 5: Upon successful loan approval, receive confirmation
Step 6: Approve and authorize the disbursal of the loan amount
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