Almost every central competent person is eligible to get a personal loan. Personal loans can be borrowed for any purpose without pledging any collateral. A salaried person can also obtain a personal loan but need to meet some eligibility criteria. These basic criteria include income, credit score, age, and some other details.
A personal loan has always been a better option when people run out of funds for a child's education, paying off a pending debt, home renovation, medical emergency, planning a foreign holiday, or a family wedding. Therefore, a personal loan is an ideal solution for every urgent financial requirement that a family has. Axis Bank Personal Loan or any other personal loan is credit provided to an individual by a Bank or Financial Institution without asking for any collateral or security in exchange.
Any legal purpose can be met with the funds provided by a personal loan either than the ones mentioned above. These loans are unsecured as no collateral deposits are asked to be given against it to the creditors. But companies and organizations, though they have separate legal entities, are not eligible to get a personal loan. On the other hand, both salaried and self-employed people are eligible to get a personal loan. The eligibility criteria of the two categories are almost identical but are different considering some factors.
The repayment period of a personal loan can extend from 12 months to 60 months for a salaried employee depending upon his salary, the organization he works for, and the amount of service he had in service. Nowadays, a personal loan can be applied via net banking through the online sites of Banks and NBFCs or can be applied traditionally by visiting the branch. The bank customers who are salaried employees can apply for a pre-approved personal loan and get a quick disbursal.
An application form of a personal loan should be duly filled by the salaried employee and documents proof of Identity, address, and income must be attached to get the loan. The personal loan limit depends on the creditworthiness and other additional debts taken by the applicant. However, the lending institution can extend the limit if the applicant can do proper negotiation. EMI Calculator for Personal Loan is available with every lending institution, which can tell the customer how much monthly installment he needs to pay for the personal loan he chooses to apply for.
Salaried employees of a public sector undertaking, including the central, state, and local bodies or private limited companies, can get a personal loan. The individual must be within the age of 21 to 60 years, with a minimum monthly earning of Rs 25000. He must be working for at least one year with the current employer and have a job for at least two years in total. Many Banks do not ask for much documentation if the applicant is a KYC compliant Bank customer.
Identity proof of the salaried employee and the address proof like a copy of Passport, Voter ID card, Driving Licence, or Aadhar Card with Form 16 is required for getting a personal loan. The bank statement of the previous three months of the salary account with passbook details and two latest salary slips or salary certificates must also be given for applying for a personal loan. The rack interest rate for a salaried employee ranges from 10.5 per cent to 21 percent. The loan processing charges can go up to 2.5 % of the loan amount, subject to a maximum of Rs 25,000 for salaried customers of the bank. The stamp duty and other statutory charges are applied according to the laws of the state.
A salaried employee who wants to get a personal loan with lower interest rates and get qualified for it shortly needs to improve his credit score. If he pays off the unsettled dues, it increases the credit utilization ratio and boosts the credit score. Making monthly repayment for loans and other debts can improve the credit history of a person. People should look out for low-interest rates, evaluate all fees and repayment terms, and find creditors who allow co-signers; before taking a personal loan from any lending institution or lender.
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