Lending institutions often think twice before providing a personal loan to proprietorship company employees whereas they might not think twice while offering a loan to employees of an established company. This is because in proprietorship concerns, the entire risk is borne by a single person and hence, the happening of any unfortunate event might spell difficulty in repaying the loan.
While evaluating loan applications, partnership firms evaluate the credibility of the organization the borrowers work for to ensure that loans are returned on time. However, with some careful planning, employees of a proprietorship company can avail the funds required in the form of a personal loan. Here is what employees of such a firm can do to improve their criteria:
- Check your CIBIL Score: Your credit score or CIBIL score is a numerical reflection of your creditworthiness. It ranges from 300 to 900, the higher being better. A score of 750 is considered to be a good CIBIL score and can help your loan being approved at being able to avail an instant personal loan at competitive rates of interest. Applicants with a low credit score can consider improving their spending habits and repaying their loans to improve their credit score before re applying.
- Negotiate for an Appraisal: Lenders insist on a basic minimum income criterion in addition to other factors to make sure that you can repay the borrowed amount on time while continuing to live a quality of life as before.
Negotiating with your employer for an appraisal. An appraisal would mean additional income which can help your loan be approved easily.
Must Read: Personal Loan Rules, Terms & Conditions that You Should Know!
What Criteria do Candidates Need to Fulfil to Apply for a Personal Loan Online?
The conditions to apply for a loan includes:
- Applicants should be aged between 21 to 60 years and should be salaried or self-employed.
- Salaried professionals should earn a minimum of Rs. 25,000 in metropolitan cities and Rs. 20,000 in other places all over India. Self-employed professionals should earn a basic minimum turnover after tax depending on the type of business they are engaged in.
- A healthy CIBIL score of 750 or above can help in availing a loan easily and can help in negotiating rates of interest.
- The applicant should possess work experience of at least a year and an experience of at least six months working for the present company.
- Most lenders, including Fullerton India, do not entertain cash salary applicants.
What Documents Require to be Furnished while Applying for Finance?
The personal loan documents required include:
- Employees desirous of applying for a loan are required to furnish a copy of their salary slip of the previous three months and records of their salary account of the previous six months.
- Self-employed persons are required to furnish a copy of their business earnings and their current account statement of the previous six months.
- KYC documents that consist of Voters ID, AADHAR Card, etc.
- Bank statements of the past 6 months
- Any other document as requested
If you have decided to opt for a personal loan but are not sure about how much you can borrow, our personal loan eligibility calculator indicates the maximum possible amount you may be able to borrow. The estimate provided by the calculator can help you plan your finances better.
Must Read: Why is Fullerton India Most Preferred Personal Loan Lenders?
How Can I Apply for a Personal Loan?
The process of applying for a personal loan is extremely simple and hassle-free. All you need to do is complete the loan application to avail a personal loan in a few simple steps:
- Visit the loan application page and select the ‘’Apply now” option located at the top right-hand corner of the page.
- Enter your mobile number and the other details requested.
- Post verification of your mobile number, you will be required to enter other important details.
- You could also apply for a loan through our mobile application (salaried applicants only) or by visiting any of our physical Fullerton India branches.
If you have decided to opt for a personal loan, make sure to organize your finances better and repay your loan on time to ensure that you maintain a healthy credit score in the long run!