Top personal loan tips for the salaried employees

A personal loan is one of the preferred credit options, which can be availed to meet different personal reasons. You might have an instant financial requirement or might require the funds for executive education, home renovation or medical expenses. All such needs can be simply met by availing of a personal loan. Note that for salaried employees, availing of personal loans becomes even simpler owing to their stability in income. Pre-Approved personal loan for salaried is even provided by some of the lenders. Such pre-approved loans are instant in nature and are based upon the individual’s credit score and repayment history. They are usually disbursed on the loan application day. 

Here, we will be sharing 5 tips on a personal loan for salaried employees to assist you in availing the loan faster with zero hassle.

Select your personal loan offer carefully

There are times; you might end up availing of personal loans of higher loan proceeds than you need because the financial institution’s sales representative had a target to achieve. This means your loan EMI will be on the higher end, and thus your borrowing cost may increase as processing charges, upfront charges etc., are also charged by the lender. Thus, before availing personal loan online, ensure to carefully evaluate your needs and your rate of interest so that you can repay it comfortably. Various online lending platforms like KreditBee offer better terms and conditions. Also, it may offer a lower KreditBee interest rate if you have a good credit score and a good repayment track record. 

Ensure to evaluate the minimum eligibility needs

Personal loan applications may be turned down by lenders owing to different reasons. One such reason may be mental distress if you need the funds immediately, secondly, if your credit score is poor, thirdly if you have applied with multiple lenders within a short span of time. You can avoid them all by simply conducting a preliminary check-up of your eligibility needs set by the lender. If your credit profile does not match, there is zero need to apply for a personal loan. One of the most simplest ways of checking your personal loan eligibility without hampering your credit score with different lenders is to approach online lending platforms. Such platforms allow you to compare amongst different lenders available to you based upon your salary, credit score, income, and various other parameters. While such platforms also fetch your credit report like financial institutions to check your personal loan eligibility, such retrievals for reports are considered as soft enquiries, which do not impact your credit score at all. 

The personal loan offered by KreditBee is of 3 types, namely Flexi Personal loan, Personal loan for salaried, and online personal loan. Under the option of personal loan for salary, the maximum repayment tenure is up to 3-15 months, the maximum loan amount is up to Rs 2 lakh, and the KreditBee interest rate starts from 1.02 % p.m. Note that for availing this personal loan for salaried option under KreditBee, your net monthly income must be over Rs 15,000. Additionally, you should be at least 21 years and below 45 years and should have at least 3 months of work experience in your current company to avail of the personal loan from KreditBee. 

Adjusting your EMI repayment amount

As the monthly personal loan repayment will lower your monthly income, thus you must ensure to adjust your EMI accordingly to an amount, which you can comfortably repay with ease. You can do this easily either by extending the loan repayment tenure of your personal loan or by lowering the principal amount that you are borrowing. In such regard, the terms of EMI provided by lending platforms like Kreditbee is suitable. For instance, you can repay the personal loan within 15 months for small-ticket loans. However, for big-ticket personal loans, you may approach NBFCs or banks, which may offer you higher loan proceeds of up to Rs 40 lakh. 

Ensure to check if there are any hidden costs

As mentioned in the starting, there are many lenders that may levy charges and provide you loan proceeds as per their target. Thus, ensure to go through the terms and conditions before accepting the final loan deal online. Such lenders may charge a higher charge in the form of an upfront fee, administrative fee etc., which may be as high as 5 % to 7 % of the borrowed loan proceeds, plus the processing charges and pre-closure or part prepayment charges, if any. Thus, before you make the final application, ensure to confirm the final costs and charges with lenders as such charges may be reduced from your actual loan amount and might leave you short of the required funding. For instance, if you need a loan amount of Rs 1 lakh and the lender levies a processing charge of 7 percent of the loan amount, you will just get Rs 93,000 in your savings bank account. Note that KreditBee is one such digital platform that offers a nominal processing charge based upon your credit score and past repayment history and has zero provision for registration or upfront fees.

Maintain a good credit score

Lastly, every lender evaluates your credit score and credit history before processing your personal loan application further. If you do not have the required credit score as per the lender, your personal loan application may be rejected. As earlier mentioned, every hard query lowers your credit score; thus, before you apply for a personal loan, try and improve your score by maintaining a healthy repayment of your credit card dues and EMIs and following other credit healthy behaviours. Note that if your credit score is low and your need for funds is immediate, then there are zero immediate means to enhance your credit score. Improving your credit score or credit history takes time, & the requirement for a personal loan is unannounced. Thus you must ensure to start from right away to maintain a good credit score.