Factors before applying for a Personal Loan

1. Salaried Employees? Consider these Factors before applying for a Personal Loan Today, personal loans are one of the most significant catalysts for fulfilling the daily needs of life. However, reasons for taking short term personal loan can vary from houseful expenses to medical bills. Short term personal loans can be used for all emergency purposes without bothering your savings and investments. Fortunately, with widespread internet penetration, the procedures for applying for a personal loan have become very easy and simple as there are numerous websites catering to potential customers for such purposes. A short term personal loan is a loan which is not secured against any asset belonging to an individual. Short term personal loans are known as unsecured loans that come with shorter loan repayments when compared to the secured loans. In most of the cases, personal loans are usually used for purchases of electronic goods, vacations, home renovations, marriage expenses, etc. Such loans get instant approval and the borrower is free to use the money at their own will. Following are the conditions that are usually considered before processing a personal loan: Age of the borrower Occupation of the borrower Income of the borrower All the above information help banks assess the credibility of the borrower whether he/she would be able to repay the borrowed amount along with the interest. This info is also used to determine the approximate value that the lender is likely to disburse to the borrower. A salaried guy is able to get a short term personal loan much easily as they have a fixed monthly income which is actually considered as a guarantee for the financial institution. Along with that, the three pre- defined parameters of age, occupation and income of the borrower, lenders determine the repayment potential of the borrower. Generally, the conditions that are adhered to include: Minimum age of the borrower must be 21 and a maximum of 60 years of age. The minimum salary income range is from Rs. 13,000 to Rs.20, 000 and it depends on the lender.

2. The personal loan corresponding to the borrower is designed on the basis of EMI calculated which has to be repaid by the borrower. In order to get a short-term personal loan, salaried employees will go through an identity and income verification process which actually involves collection of certain documents like income proof, identity proof and address proof of the borrower. These include: Identity Proof- PAN Card/ Passport/ Driving License/ Voter ID Address Proof: Voter ID/Rent Agreement/ Passport Proof of Income: Pay Slips/ Form 16 If all the documentation of the borrower is easily verified, then at present it does not even takes a day to get a personal loan for a salaried individual. Loan within a day…? Isn’t it amazing? Well, go grab your short-term personal loan!