Personal Loan For Salaried People – Top 5 Points To Keep In Mind


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People take personal loans for all kinds of reasons. It could be for some immediate financial requirement or to fund an executive education program; you might need money for urgent medical expenses or home renovations that cannot be delayed any more. In essence, you’d be free to use the personal loan funds any which way you prefer.

Personal Loan For Salaried People - Top 5 Points To Keep In Mind

If you are a salaried person, there’s a high probability that you’re contacted regularly by banks and NBFCs wanting to offer you pre-approved personal loans. However, it’s only upon application that you realize the hassles involved, and that there wasn’t any pre-approved amount after all. It’s to avoid all such troubles, that we’ve detailed top five points that must be kept in mind by all salaried people interested in taking a personal loan.

Decide the loan amount very carefully

When it comes to personal loan for salaried individuals, people often commit the mistake of taking a higher amount than they can afford. They forget that a higher personal loan will also mean higher EMIs and overall higher borrowing costs, for instance, upfront fees, processing fees etc. Hence, prior to applying for a personal loan online, you must carefully evaluate your requirements and decide EMIs you’d be able to pay conveniently. One of the good ways of going about it is by visiting a reputed platform like and using their personal calculator to arrive at the EMI figure comfortable for you.

Understand the minimum eligibility criteria

Face personal loan rejection can be a very disappointing experience. Not only can it cause tremendous stress as you will not be able to meet your fund requirements, it can also put a dent into your credit score. You can avoid all such hassles by carrying out a thorough beforehand check on the minimum eligibility criteria laid out by the corresponding bank or NBFC. There is no point applying for a personal loan with a lender if your profile doesn’t match their criteria. Regardless of what the bank or sales rep tells you, you must always do this due diligence before loan application.

EMI amount adjustments

Please remember, making personal loan repayments each month will inevitably reduce your disposable monthly income. Therefore, it would make sense to arrive at the right EMI amount you can take out comfortably from your income each month. This amount can be arrived at by either extending the repayment tenure of the loan, or reducing the available principal amount. As mentioned earlier, you can use the personal loan calculator available free of cost at and calculate this ideal sum instantly.

Look out for the hidden costs

Please note, a personal loan offer that appears too good on the surface might not be all that good. Banks and NBFCs often levycharges and fees on personal loans that are not very apparent in their marketing material. In fact, these charges can constitute as much as 5% to 7% of the entire loan amount. Therefore, verify all the hidden costs associated with the personal loan offer before signing any document. Please remember, many such charges are deducted upfront from the loan amount, and might leave you short of the required funding. For instance, if you’re in urgent need of a ₹ 1 lakh personal loan and the lender levies a 7% processing fee, you’re going to get only ₹ 93,000 credited into your account.

Keep your credit score in good shape

Last but definitely not the least, all lending establishments refer to your credit score while processing your personal loan application. There’s a high chance that your application might be rejected or you might get offered harsher terms if your credit score is below par. Not to forget, every hard query into your credit report would also dents your credit score a little. So it’d make sense to keep a constant check on your credit score and maintain it in good shape prior to applying for a personal loan.


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