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Why are employees more likely to qualify for instant personal loans?

When it comes to an instant personal loan, employees are more likely to get it easily. There are several reasons that affect creditworthiness.

In this blog, we will discuss the same thing so that you can understand it better.

A personal loan is a type of loan that can be used for multiple purposes. Whether you are planning a trip, are in financial or medical distress, or have outstanding debt, this loan can be your savior in any situation. Another benefit of acquiring this loan is that it is unsecured in nature. You therefore do not have to provide any collateral in order to obtain these.

An employed individual or self-employed person may apply Instant Personal Loan. However, a salaried applicant has a higher chance of qualifying for an instant personal loan and the reason for this is their income stability.

An employee has a stable income, which eliminates the lender’s concerns about repaying the loan. On the other hand, a self-employed person does not have a defined monthly income, which raises concerns for lenders about their creditworthiness to repay the loan.

The most important factor that every lender considers before granting an instant personal loan is that the borrower has the funds to repay the debt on time. And because of their steady income, employees typically have an advantage over non-employees in terms of credit availability.

In addition, there are other elements that affect creditworthiness. Let’s take a look at them.

Factors affecting the eligibility of a personal loan

Below are the factors that affect the eligibility of a personal loan –

Employer – The organization you work for has a big impact on your ability to get an instant personal loan because your company’s reputation is taken into account when calculating your eligibility.

Outstanding Debt – Your financial obligations are defined by your outstanding debt. If you previously borrowed and have significant outstanding bills, your lender will be skeptical about repaying. As a result, you may have trouble getting the loan.

creditworthiness – A credit score is a three-digit number between 300 and 900. When determining your personal creditworthiness, this is one of the most important factors that lenders evaluate. Your credit rating shows how creditworthy you are. Maintaining good credit makes it easier to get an instant personal loan. To be eligible for this loan, you must have a minimum credit score of 750.

Eligibility criteria for an instant loan for employees

Here are some of the general eligibility criteria that a person must meet in order to take out an instant personal loan.

● You must be a resident of India.

● Your minimum age should be 21 and maximum age should be 60 years.

● You must have worked as an employee for the current organization for one year.

● You must not default at any bank.

● Your credit score should be at least 750.

Required documents for an instant loan for employees

Below is the list of documents.

● Proof of identity (Aadhaar card, passport, driver’s license, voter’s card)

● Proof of Address (Aadhaar Card, Voter ID, Driving Licence, Passport, Utility Bills)

● PAN card

● Age-proof

● Bank statement for the last three months

● Payslips for the last three months

● Form 16

Immediate personal loan fees

Several financial institutions offer personal loans at different fees. You can compare them based on their interest rates, processing fees, and other related fees to choose a better option.

Final remarks

A personal loan with instant credit is the best option to free yourself from any financial burden. In addition, you can use the above information to learn about the eligibility criteria, required documents and different interest rates for this loan. As a result, you can choose the best financial institution for your needs.

Author Bio: Vinod Gill is an author specializing in writing content on finance and banking topics. He is a digital marketing consultant, blogger and co-founder of Ecompany.in

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Richard Dement

The author Richard Dement