A large number of India’s working population depends on personal loans to meet their financial requirements. Unlike secured loans, a personal loan comes with no end-usage restriction and is disbursed within a stipulated time. According to reports by NIRA, around 77% of working employees avail of personal loans for personal needs like weddings, home renovation and children’s education, etc.
Given below are the steps to avail a personal loan for government employees that one must know to avoid rejections.
Quick steps to avail of a personal loan for Government employees
Since government employees have stable job security, their chances of loan approval increase. They just need to meet the simple eligibility criteria to be able to avail of the loan quickly.
However, since personal loans have no collateral, government employees can’t get a personal loan without CIBIL and income proof. Here’s how government employees can avail of the loan quickly:
Step 1: Meeting the eligibility criteria
Before availing any personal loan, employees must check whether they are eligible for the loan or not. As already mentioned above, fair job security makes it even easier for them to avail these loans. Other eligibility criterion includes:
Profession: Employees working in any public sector unit (PSU), government school or college or any state and central government department can avail of a personal loan.
Income: The income criterion varies according to different lenders. However, the minimum income must be 15,000 to avail of a loan.
Age: Maximum lending institutions ask the lender to be at least 21 years of age, and the borrower must be less than 67 years of age at the time of loan maturity.
Tenor of job: Employees who have worked for at least 1 year get the loan disbursed easily, whereas employees who have just entered a job must check with their lending institutions before applying for the loan.
Financial stability: The borrower’s take-home salary must not be less than 30% of their gross salary after payingtheir existing loan EMIs.
Also, to avail of a personal loan for government employees, one must check the lender-specific eligibility criteria.
Step 2: Keeping necessary documents ready
After employees meet the required necessary criteria, they must keep the required documents ready for submission. The documents which borrowers need to submit to the lending institutions are:
- Proof of address
- Proof of identity
- Previous 6 months’ salary slips
- Employment proof
- Signature proof verification
- At least 12 months’ bank statement
Borrowers must check with their lender to know if any other documentation is required. Since a personal loan is a collateral-free loan, borrowers do not have to pledge any asset or submit any paper related to it.
Step 3: Applying for the loan
Once employees meet the eligibility criteria and gather the required documents, they can apply for the loan either online or visit the lending institution’s office. Here are the steps that borrowers need to follow if they apply for a loan online:
- Visiting the website of their chosen lending institution to find the form online
- Filling out the application form by entering basic personal, employment and financial details
- Deciding on the loan amount and tenor to get an instant approval
- Submitting the documents online for verification
Once the lending institution successfully verifies the submitted documents, the borrower will get the personal loan amount within a few days. However, borrowers must avoid certain things while taking personal loans, like the non-awareness of their CIBIL score.
Before availing of a personal loan for government employees, they should determine the loan amount and its repayment tenor. According to that, their monthly EMIs are calculated. In this regard, borrowers can use a personal loan EMI calculator instead of calculating it manually to derive the EMI amounts quickly and get error-free results. These calculators are available on the websites of financial institutions and are free to use. Moreover, borrowers can enter different principal amounts and repayment tenors to see which option would be the most affordable for them.
Personal loans are the best choice for individuals with immediate financial requirements. The loans are hassle-free and get disbursals quicker than any other loans. Borrowers can use it to meet any financial requirements they have. An added advantage of personal loans is they can also provide tax benefits for borrowers.
Before applying for personal loans, borrowers can enter their names and contact numbers to check their pre-approved offers. These offers help accelerate and simplify the personal loan process. To sum it up, individuals must keep in mind to check different lenders to avail of the best personal loan for government employees at the most affordable interest rates. Borrowers can apply for a personal loan by following these simple steps and moving forward to meet their financial requirements.