Your first job opens up a range of new possibilities for you. It is seen as a steady source of income. This has several benefits, including the increased chances of getting a personal loan. Personal loans for salaried individuals are easier to obtain. Unlike other loans, the personal loan eligibility criteria are quite relaxed. So, even if it is your first job, you still stand a chance of getting a personal loan.
One of the main factors for getting a loan is your ability to repay it. When giving a personal loan, the lender has to make sure that the borrower is financially equipped to do so. Having a job, even if you’re a new employee, reassures the lender that you’ll have a monthly salary to repay the loan amount.
Both banks and financial institutions offer personal loans, but their requirements might differ. In addition to your stable salary, there are a few other things you can do to ensure you get a personal loan.
1. Apply for a lower amount
Chances are you won’t be drawing a hefty amount as your first salary. At this rate, a lender might be hesitant you lend a large personal loan. To make sure that your loan doesn’t get rejected, apply for a lower amount. Calculate your Debt To Income (DTI) ratio to know what is a reasonable loan amount you can apply for, without worrying about rejection.
2. Offer a collateral
Unsecured personal loans are collateral-free loans. This means you don’t have to pledge any business or personal asset as security when you apply for the loan. Approving such loans brings in a great deal of risk for the lender. However, you can ease this risk and increase your chances of getting a personal loan by offering collateral. You can take a personal loan against your Fixed Deposit (FD) or even your life insurance policy. Having an asset at stake will convince the lender that you will pay up the loan.
3. Get a guarantor
Since it is your first job, your salary might not be sufficient to convince the lender that you could repay the loan amount. However, if you get a guarantor or co-signer who is better off financially, the lender might consider your application. You could request a family member or friend to stand as an assurance for your liability.
4. Work on your CIBIL score
A good CIBIL score is another primary factor that influences your chances of getting a personal loan. A CIBIL score of 700 or above is considered good. This not only helps you get the loan sanctioned but could also help you get a better interest rate on it. To have a good CIBIL Score, make sure you pay up your dues, including your credit card bills on time. The lesser your credit liability, the better will be your credit score. Having no credit history at all also lowers your chances of getting a personal loan. You can solve this by getting a secured credit card and paying its bills on time. This will help build your creditworthiness and get a personal loan.
5. Look for an easier process
Bank policies for loan applications are more extensive and there are a number of documents required for personal loans taken from banks. They also have tougher eligibility criteria and a longer processing time. However, Non-Banking Financial Companies (NBFCs) are more accommodating when it comes to offering personal loans. They also have personal loan pre-approved offers that require minimal documentation and lesser processing time. Additionally, they also offer competitive interest rates and Flexi personal loan options that further decrease your overall cost.
Personal loans are one of the most convenient and comfortable loans to avail. Whether you have a low income or it’s just your first job, you still stand a chance to getting a personal loan. You can use this loan for any particular need.