Expert Advice: How to Qualify for an Instant Personal Loan as a Salaried Employee

Amid the constantly inflating living costs, collateral-free Personal Loans have become a necessity for salaried loan seekers. Borrowers can use an instant Personal Loan for salaried for various reasons, including a family vacation, a child’s wedding or education, a complete home renovation, or meet a range of immediate and unexpected expenses. 

Obtaining a Personal Loan has become much easier today. No collateral requirement and 100% digital loan procedures through mobile applications like the Hero FinCorp instant Personal Loan app have significantly improved funding access. Through the app, one can easily avail of an instant loan of up to Rs 1.5 Lakh with a flexible repayment tenure of up to 24 months. To qualify for a Personal Loan, check the lender’s eligibility criteria and ensure fulfilment to get timely funding access without hassle. 

Do Salaried Employees Have High Personal Loan Eligibility?

Yes, salaried employees have better chances of qualifying for an unsecured Personal Loan than self-employed due to numerous factors. Firstly, they have a consistent income source that most NBFCs prefer while evaluating loan applications. Such applicants project themselves as reliable borrowers because loan providers are more confident about getting their repayment on time. 

Furthermore, salaried employees have better chances of developing better credit scores than self-employed individuals, making getting loan approval easier. Also, salaried professionals have higher chances of maintaining a steady job and working in the same field for long, which is beneficial for giving the applicant a stable job history. Higher financial stability, consistent income sources, and bigger savings accounts bolster their chances of getting easy loan approval.

Factors Affecting Personal Loan Eligibility

Before applying for an instant Personal Loan, salaried professionals must understand the factors affecting their eligibility. Here’s a look.

• Monthly Income: This is the most crucial factor that helps assess Personal Loan eligibility based on the applicant’s repayment capacity. That is why most loan providers have a minimum income requirement to approve loan applications. For instance, a loan seeker must earn a minimum salary of Rs 15,000 per month to qualify for an instant Personal Loan.
• Employment: The applicant’s employment affects their Personal Loan eligibility significantly. While both salaried and self-employed loan seekers are eligible to qualify for a Personal Loan, salaried individuals must be employed for at least six months, and self-employed professionals must have a work experience of at least two years in the current business. 
• Credit History: An individual’s credit history represents their financial management skills and demonstrates how responsibly they have handled credit. Those with missed EMIs and loan defaults in their credit history have lower chances of qualifying for a Personal Loan.
• Debt-to-Income (DTI) Ratio: The current DTI ratio indicates an individual’s financial well-being and obligations. If the DTI ratio is over 50%, the Personal Loan providers will doubt the applicant’s repayment capacity and reject the loan application. 

Considering the factors above, it will become easier for salaried individuals to qualify for Personal Loans. It is advisable to download the Hero FinCorp loan app that provides Personal Loans of Rs 50,000 to 1.5 Lakh at competitive interest rates.