Availing of a personal loan for salaried employees is a quick and easy process if you have a decent credit score and a few documents handy. You can apply for one online with a credible lending institution extending a seamless digital application portal and customer service.
After receiving the approval letter, you’ll receive funds in your account within a matter of days, which you can use for any personal expense.
So, if you’re applying for personal finance, consider these personal loan for salaried tips before submitting your application.
Build a decent CIBIL score
Your CIBIL or credit score is a marker for creditworthiness. Having a healthy score means you are less likely to default on your EMIs, which makes you a credible applicant for personal credit. So, before applying, be sure to check your CIBIL rating by visiting the official CIBIL website.
Soft inquiries like checking your CIBIL score regularly will not hamper your chances of getting a personal loan at low-interest rates.
Building a healthy credit score is not that hard! You simply need to pay all your credit card bills and ongoing EMIs on time.
Avoid applying for multiple loans simultaneously
You might want to give yourself the best shot at getting personal finance by applying for it with multiple lending institutions simultaneously. But, avoid this at all costs. The primary reason is that each time you apply for personal finance, the lending institution inquires your credit score from CIBIL. This is an official hard inquiry, which CIBIL lists on their credit report, which they share with a lender.
Too many citations of loan enquiries on your credit report will likely cut a sorry figure in front of your potential lenders.
Additional Read: 5 Ways in Which Personal Loans Can Help You Save Money
Prove income stability
In the case of salaried employees, an employer’s reputation and the number of years you’ve been employed with them goes a long way in getting your loan approved at low personal loan interest rates.
Although, these two factors are not mandatory for receiving approval. Even if you’ve only started working recently with a small organisation, your chances for approval remain high. The only difference is when you’ve worked for at least two years with a renowned company, your chances for approval at a low rate are higher than when you’re a fresher.
Disclose all income sources
Doing this improves your approval chances and your chances of getting the most competitive interest rates. More income sources show a higher repayment capacity.
So, whether you earn additional income from freelance work or rent from a property you own, disclose it when filing your loan application.
Additional Read: Tips to Save Money Through Personal Loans
Reduce your debt to income ratio
Finally, improve your eligibility by repaying any previous credit card bills or loans before filing a new loan application.
By doing this, you reduce debt, thus, automatically improving your debt-to-income ratio, the percentage of income that goes towards paying your monthly debts.
Are you looking for personal finance? If yes, turn to Tata Capital. We extend tempting interest rates, flexible repayment tenures, and a user-friendly digital portal for online applications.
Plan your EMIs with our personal loan EMI calculator and apply today!