How does your salary help you get qualified for a personal loan?
Published on : June 25, 2021

You may be a fresh graduate on your first job. You may be planning several expenses but may be boggled with financing as you are just building your savings. It is important to set aside a portion of your salary towards a contingency fund. When you encounter new or unexpected expenses, you should not be touching your contingency fund for the same. This is the point when you explore financing options. Instead of swiping your credit card, you would do well to explore the more convenient and affordable personal loan option.

Did you know that having a regular job for over six months helps you to qualify for a personal loan? That is the reason why your salary is the gateway to a personal loan.

Personal loans are unsecured loans that can be availed without the need for collateral. This makes it extremely attractive for young working professionals.

The basic eligibility criteria for personal loan application is being an Indian citizen and/or resident over 21 years of age, earning a monthly salary of over Rs 30,000. Having a regular job ensures a regular monthly income and this is the most important parameter on which a loan application is assessed.

A regular  job and salary over six months ensures that your credit history is available and CIBIL generates a credit score based on your bank records.

A CIBIL score is a calculated numeric value between 300 and 900. A CIBIL score over 750 is considered good and acceptable for a personal loan. 

Having a regular job makes provisions of the necessary documents for a personal loan application very easy. The minimum documents that need to be uploaded along with the online application at LoanTap include – 

  • PAN Card
  • Aadhaar Card/Passport/Driving Licence as proof of residence
  • Salary Slips for last three months
  • Bank Statement of Salary account for the last six months

The salary slip is ample proof of the job you hold, the organization you work for and the date of joining the organization. The Bank statement of the salary account clearly shows the monthly inflow and your regular outflows. Your regular spending and investment pattern, your EMI outflows, credit card payments, etc are clearly evident on a perusal of the bank statement. The LoanTap team evaluates the application on this basis and arrives at a conclusion on whether the loan should be approved or not.

The credit score is derived from your credit history which needs a minimum of six months’ income details. A balanced and clean credit history is the most useful weapon in your arsenal. It makes the process of personal loan processing a cake walk.

Based on your job and salary details, you can easily get a personal loan from LoanTap in the range of Rs 50,000 to Rs 10,00,000 for a period ranging from six months to five years. The annual interest rate starts at 18%. You can select a flexible repayment option as per your specific needs. The EMI that you wish to pay can be decided by you by adjusting the tenure so that it fits conveniently into your monthly budget. 

You can choose from a step-up option or an EMI free or the normal term repayment option as per your specific needs. Once you service the loan for six months, you can prepay the loan without any penalty charges.

A personal loan is way better than a credit card which charges 2-2.5% per month as interest charges. Treating your credit card as an extension of your paycheck can be dangerous for your financial health as you may land in a vicious debt trap. A personal loan gives you the flexibility to plan your expenses and get access to funds at short notice. Did you know that LoanTap processes loan applications within 24-36 hours? This makes it extremely convenient for working professionals to decide their finance needs and avail the loan as and when they need it.

Your salary is the first step to processing a personal loan as it helps to determine the loan eligibility as well as the amount of loan that can be granted to you. Use your financing options wisely and it will stand you in good stead. For all your personal loan requirements LoanTap is just a click away.

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