A personal loan for corporate employees is a tailor-made loan for corporates offered by lenders. This guide lists the essential steps you must follow before availing a personal loan for professionals.
An instant mode of finance to meet various needs, the personal loan space has witnessed a paradigm shift owing to digital disruption and evolution of non-banking finance companies (NBFCs). Today, tailor-made personal loans for professionals are available for corporate employees working with MNCs and private limited firms. If you are a corporate employee looking to avail a personal loan, this guide related to personal loan for corporate employees will help you in the borrowing exercise.
Check your credit score
Before you apply for a personal loan for corporate employees, it’s essential to check your credit score. A three-digit score ranging between 300 and 900, it helps your lender gauge your creditworthiness and reflects your prudence with managing past or existing debts. A high score enhances your personal loan eligibility criteria and can help you avail a loan at a competitive interest rate.
Note, that you can check your credit score for free once a year from either of these credit information companies (CICs) in India – TransUnion CIBIL, Equifax, Experian and HighMark. There are other third-party websites that allow you to check your credit score for free.
“How much personal loan can I get on my salary?” is a common question among most corporate employees. The amount varies across financial institutions. Therefore, prior to applying for a personal loan for professionals, it’s important to compare offerings from multiple lenders. While comparing look out for the loan amount, applicable rate of interest, loan tenor, processing fees and prepayment charges among others. There are various aggregator websites that allow easy comparison.
For instance, Bajaj Finserv Personal Loan offers funds up to Rs.25 lakh with flexible tenors ranging from 12-60 months. It also comes with a Flexi Loan facility whereby you can borrow funds as and when required from the approved loan limit. Also, interest is charged only on the amount borrowed. This helps to bring down EMIs and effectively manage your finances. You can use this personal loan EMI calculator to know the EMI amount.
Know the documents required
Documentation plays a crucial role in the borrowing exercise. Before applying for a personal loan, find out the list of documents you need to submit with your loan application form. Though the list may vary across lenders, the common documents required for personal loan are:
- KYC documents
- Salary slips of the last couple of months
- Bank account statement
Some lenders may ask for papers related to IT returns.
Find out the loan approval time
Personal loans are generally availed when you need funds quickly. Hence, the loan approval and disbursal time is a key aspect to consider before sealing the deal. Before signing on the dotted lines, find out the time the lender would take to disburse the funds into your account.