A popular misconception about personal loans is that individuals who work for proprietorship firms find it hard to receive loan approval. That’s not true! Sure, a lender checks the credibility of the organisation you work for, but if it is a sustainable, growing enterprise, your loan approval is hassle-free.
Even if the proprietorship company you work for is a startup, there are ways through which you can avail of personal finance. Here is what you can do to improve your loan eligibility.
Check your CIBIL score
CIBIL or credit score is a three-digit numeric that ranges between 300 and 900 and depicts your creditworthiness. So, before approaching the lending institution, you must check your CIBIL score. Here, the higher your score, the better are your chances of getting loan approval.
If you have a low score, fret not! You can improve it in a matter of months. How? Firstly, timely pay your credit card bills because even a single missed payment can lower your score.
Besides that, limit your credit card spending to up to 50% of your approved limit. Why? That’s because it shows a good spending discipline. However, your CIBIL score can also drop if you stop using your credit card altogether. So, spending judiciously and paying credit card bills on time is key to maintaining a healthy CIBIL score.
Negotiate a higher salary
The eligibility criteria for a personal loan for proprietorship employees also include income. Lenders only approve a loan application if they are sure about your repayment capability. So, before applying, try to negotiate a higher salary with your organisation. By negotiating a higher salary with your proprietorship company, you will likely improve your loan approval chances.
However, if you already receive a substantial pay pack, your chances of approval go up regardless of how new your company is. Remember, with a handsome monthly income, you can qualify for more competitive personal loan interest rates.
Additional Read: Tips & Tricks to Track Your Personal Loan Status Online
Documents required for this loan
Before going ahead with your application, have the following documents ready:
- Income proof – Salary slips of the last 3 months, last 6 months’ bank statements
- Identity proof – Aadhaar card, PAN card, voter ID card, passport, or driving license
- Residence proof – Electricity or any other utility bill
Personal loan eligibility criteria
The eligibility criteria can vary for lenders. However, as a salaried employee, you can fulfil the following conditions to get personal finance with Tata Capital:
- You must have work experience of 1 year
- Your CIBIL score must be above 750
- Your monthly income should be above Rs. 15,000
- Your age must be between 22 and 58 years.
Additional Read: How has the COVID Second Wave Impacted Personal Loan Industry
The bottom line
Are you looking for a reputed lender to get personal finance at competitive interest rates? Well, your search ends at Tata Capital! Besides easy-to-meet eligibility criteria, we also extend negotiable repayment terms.
Before applying for a loan, you can use our personal loan EMI calculator to calculate your potential monthly instalments.
So, what are you waiting for? Apply for personal finance with us today!