8 Essential Factors to Consider When Applying for a Personal Loan

There are situations in life when you require urgent cash, it could be for an emergency or fulfilling a wish you’ve held on to for a while. As a salaried professional, you only have a few legal and safe options to get instant cash. One of the best and most preferred options is a Personal Loan. These loans enable you to budget for significant expenditures, consolidate debt, meet pressing financial obligations, pay for higher education, go for a long-awaited vacation or even for your wedding.

Due to their versatility, Personal Loans for salaried professionals remain in great demand. Unlike collateral-based loans, known for their lengthy loan processing requirements, Personal Loans do not require any collateral and are easily accessible through our website. Their easy availability and quick approval make them the ideal for personal use,Even if a Personal Loan for salaried professionals is an easy and quick option, you should consider a few important points before taking one.

#1 Just Borrow What Is Necessary
Determine the amount you need to borrow based on your needs. It’s crucial to assess the required loan amount. While borrowing too much now could become a burden later, borrowing too little might prevent you from meeting your needs. Pre-deciding the loan amount will help you choose a loan that will provide you with the required funding with affordable EMIs. You should also know that the amount affects loan processing expenses, such as stamp duty, loan processing fees, and foreclosure costs, in addition to EMI.

#2 Application Processing Time
Every applicant hopes for quick approval, which is important when the loan is for an emergency. Unlike conventional financial institutions, we approve Personal Loans instantly when an eligible professional applies with us. Right from application to disbursal, a completely online application process is ideal for busy, working folk.

#3 Selecting the Appropriate Repayment Period
The repayment tenure influences your loan’s monthly instalment. The term you choose determines your EMI. Even though longer terms may result in lower EMIs, the interest costs are higher. So, choose a term with an EMI you can comfortably pay off without suffering any penalties for late payments.

#4 Take Prepayment or Foreclosure Flexibility into Account
Due to the unpredictability of finances, it can be a good decision if you have surplus cash and decide to make a prepayment or foreclose your loan. However, this is not advisable if you rely on your salary for all your expenses besides EMI. At Clix Capital, we have nominal prepayment and foreclosure charges for Personal Loans.

#5 Personal Loan Interest Rates
The interest rate is the main determining factor of a Personal Loan for salaried professionals. Even though the loans for salaried have lower interest rates than most other instruments of credit, it is advised to check prevailing interest rates before applying. You can get a better personal loan interest rates if you are an existing customer.

#6 Check for any additional costs
A Personal Loan may come with many related costs, such as processing fees or documentation costs, late payment charges, penalties, or other such costs. We ensure you don’t get surprised by any such cost after you take the loan. All our charges and costs are pre-informed to our customers, ensuring complete transparency in the process.

#7 Maintain a Good Credit Score
Your credit score is the most important eligibility criterion that helps us determine your creditworthiness. With a credit score of 630 or above, you can benefit from low-interest rates, quick approvals, and instant disbursals. So, check your credit report at least twice a year for any inconsistencies or wrong entries and get them corrected as soon as possible.

#8 Choose the Right Loan Option
When you need instant cash loan, you must ensure which loan suits your needs. For example – we offer Personal Loans for Travel, Wedding loan, Medical Emergencies loan, Education loan and Home Renovation loan. Clarifying the purpose will help you choose the right loan option with the right loan amount.

Eligibility for a Personal Loan for Salaried Professionals

Since Personal Loans are unsecured, there is no requirement for collateral, so the eligibility depends solely on the applicant’s profile. While the criteria may differ slightly from one lending institution to another, the basic requirements remain the same.
Here is the basic requirement to be fulfilled when you apply for our Personal Loans.
• You should be a resident of India.
• You should be between 21-58 years.
• Your minimum monthly income should be INR 20,000.
• You should have at least one year of work experience with six months in the current organisation.

Documents Needed to Apply for a Personal Loan

In addition to the application form, the following documents are required to apply for a Personal Loan on our website.:
• Proof of identification: PAN card, Aadhar card, Voter Identification Card, Passport, or Driving licence.
• Proof of Residence: Aadhar card, Utility Bill, Passport, or Voter Identification Card.
• Proof of Income: Last three months’ salary slips or current year’s Form 16
If your KYC is updated with your Aadhaar and PAN, you don’t need to upload or submit the documents anywhere. You can get them verified online within a matter of minutes.

Before applying for a Personal Loan, consider all these factors to enjoy a smoother borrowing process. We at Clix Capital specialise in Personal Loans for various purposes. When you apply on our website, you can get a Personal Loan for salaried professionals at highly competitive interest rates with minimum documentation and flexible repayment tenures. The approval is quick, and disbursal is instant, saving you time and effort. So, pick up your smartphone or laptop and apply for a loan now!