Feb 18, 2020
Personal Loan feels like a boon when you have a large expense to make, regardless of whether it was a planned expense or an unplanned emergency. They are essentially unsecured loans given by lenders to individuals. People take personal loans for expenses such as medical emergencies, vacations, to clear pending debt, home renovations or other any other such expenses. Personal loans offer a great deal of flexibility and are available to all borrowers.
However, not all financial organizations offer personal loans to every customer. This is where NBFCs come into the picture, with customized products for different kinds of customers. For instance, at Fullerton India, we offer low salary personal loan, to people who have a lower than average monthly income.
Similarly, Personal loan is available for any salaried person and requires minimal documentation. Personal loans are also available for self-employed individuals and business persons. These loans typically have a maturity period of 12 months to 60 months or 1 year to 5 years. The terms of the loan vary according to the profile and requirement of the borrower.
Getting a personal loan for a salaried employee is as simple as applying online with the requisite documentation. All that you need to submit are the following:
Must Read: How to Choose a Personal Loan?
At Fullerton India, the minimum salary for obtaining a personal loan is as low as ₹20,000 (INR 25,000 for Mumbai and Delhi residents) per month. Various lenders have varying policies about the maximum amount of loan that they can grant. While some may be willing to give a loan for up to 30% of the monthly salary, others may provide a loan for as high as twice your annual salary. A low salary personal loan will have a higher rate of interest or the terms of the loan may be stricter. That said, monthly salary is not the only factor used to determine eligibility for a personal loan for a salaried employee.
The maximum amount of loan you are eligible for, the rate of interest charged, and the other terms of the loan depend on the following factors:
Must Read: How to Calculate Personal Loan EMI?
Personal loans, when used carefully, are a great way to tide over large expenses in life. While applying for any loan, you should always keep in mind your repayment capability. Taking a loan is a big decision and should be approached with clarity and caution. Repaying your loan in time and in full establishes you as a good contender for extending loans and increases your credit rating. Failure to do so will lower your credit rating and mark you as a risky borrower, which will make it difficult for you to get any more loans. Therefore, you are advised to consider all available options and carefully take decisions while availing a personal loan.