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Beware of conditions if you are in new job first t

Author: Poonam Dambare
by Poonam Dambare
Posted: Nov 03, 2018

Beware of conditions if you are in new job first timer Personal Loan borrowers

Are you into a new Job? Are you a fresher, who joined a firm and working here, for not so long? If you are into a new job and have not met with a minimum eligibility criterion as laid down by the bank for the Personal Loans, what will be the next step, you are going to take to get a Personal Loan? Are you looking to meet some goals urgently, and are left with just the option of a Personal Loan to meet those demands? Take a scenario, as below:

Consider a person Sameer, who just recently joined a firm, and is new to the job. He has not been in any job until recently and before joining this firm and has been working here for around 6 months. With the take-home salary of 50k, he is quite comfortably handling his expenses and is not worried about anything at all. But, all of a sudden, a liability comes in front of him and he wants to fulfill some of his basic needs. Consider a scenario where wants to present his mother with kitchen appliances that would please him and in the process but he is wondering whether he could get a personal loan from any bank or any NBFC. Upon researching initially and looking towards the Eligibility criteria, he found out that that it is not possible to avail a personal loan, but when he researched further, he found out that he can still get a Personal Loan if he can still satisfy some of the conditions laid down by the lenders

Eligibility Criteria for the Personal Loans

So, before diving into the details of whether Sameer can avail a personal loan or not we must look into the typical eligibility conditions which are required for the personal loans as laid down by the banks and other Lending Agencies:

  • The minimum age of the loan applicant should be more than 21 years and the maximum can be 65 years

  • The Personal Loan applicant should be earning a minimum salary, which depends on the location of the applicant. The minimum required income must be more than 15k INR, in most of the cases; however, this minimum eligibility criterion varies depending on where the job applicant is located.

  • The Personal Loan applicant must be in the job for at least 2 years and, you must be with the same employer for at least one year.

  • A Credit score of around 750 will be very good to get a personal loan with ease

With the above eligibility conditions, Mr. Sameer fulfills several conditions, as Sameer is aged 23 years, and his salary exceeds much above the minim salary required. Also, since he doesn’t have a credit history, he does not fulfill this condition, besides the other "job requirements", as he is new into the job. Thus, meeting all the other requirements, expert these two, will Sameer find himself on the approval side of the personal loan or will return disappointed being rejected for the Personal Loan.

Will Sameer gets the Personal Loan?

If he is ready to wait for another 1.5 years, there is no chance of him being rejected for the personal loan? But, since he needs it on the urgent basis and can’t wait for so long, will he be lucky to get the approval for the Personal Loan. Here are some conditions, where he can find himself being approved for the Personal loan to accomplish his goal:

  • He can obtain a secured credit card, which is a card issued by entities on the basis of security deposit maintained at the entity. By securing himself a secured credit card, he can get himself a credit score and can kick-start the CIBIL Journey based on his repayment habits.

  • He can be approved of the Personal Loans if he finds himself on the lucky side if his employer is on the preferred list of the lending agencies

  • He can easily avail the personal loan, if the bank’s policy allows the companies employees with the added undue advantage of Personal Loans with minimum eligibility criteria check

While, the first point "Getting CIBIL Score" for self, may take some time, and it may take around 3 months or so, before he can establish himself a good CIBIL Record, things might be so favorable for his immediate need. Also, the rest points, as mentioned entirely depends on the employer’s reputation and bank’s wishes, here are some options, which are still open in front of Sameer, which are listed below:

  • Sameer can offer a security of some asset like any insurance policy or any bonds and shares, which he owns

  • He can use any near ones and can opt for the joint Personal Loan application. Opting for the joint loan application allows him in improving his eligibility criteria, and those criteria, which he is not fulfilling it, can be easily covered with the other person’s eligibility criteria considering if he/she carries a good reputation in terms of eligibility criteria for Personal Loans. The joint applicant can be anyone and can be any of his colleague, his family member or his friend.

  • He can use someone as a guarantor, who establishes his authority in the eyes of the banks and banks can approve for the Personal Loans, considering the name of the guarantor attached to his application. The guarantor can be anyone, ranging from any colleague to the family member or friend.

Thus, getting a personal loan is quite easily possible, if he can fulfill any of the above conditions. He can convince his friend, or colleague to be a joint applicant or become a guarantor. Also, is he is capable to furnish any collateral in the form of insurance policy, bonds etc, he can get an instant approval for the personal loan.

But, what if, he is unable to meet any of the above requirements. Are there any ways left with him, which can get him a Personal Loan for his need? Yes, of course, there are some other ways, left with him, which can hopefully solve his personal loan requirements. Here are they:

Approach different lenders

Approaching different lenders allows him with a chance to convince anyone of the lender to sanction him a Personal Loans. He can also, opt for the NBFCs and other Lending agencies, which have easier norms as compared to the banks, and can convenience him for the approval of the Personal Loan. He may try his luck for the same, and hopefully, he might get success in getting an approval for the Personal Loan. There are several NBFCs and lending agencies, which are looking to add more customers under their belt and may offer Sameer with the personal loan. It may happen that the Personal loan as approved may attract a higher rate of interest, but the best thing is that Sameer can be approved for the Personal Loan.

There are certain aspects, which Sameer find beneficial on his part. These are below:

  • His salary is far too good, considering the minimum salary required for the approval of personal loan

  • His Company has a good reputation (which you may conclude with the salary offered to Sameer at the start of the Employment)

  • Except, CIBIL Score and minimum job requirements, he fulfills all other basic requirements needed for the approval of the personal loan

  • He can support his claim with authentic documents like salary slips, appointment letter and all other details as required by the lending agencies

  • He hasn’t defaulted on any loan in his life

  • He can offer to pay a higher rate of interest on his personal loan

Applying for the personal loan with different lenders, or directing approaching them for the personal loan, can help him in stalking a solid claim for the approval of the Personal Loan. He can look towards the variety of lenders available in the market and can also approach several fintech companies, which deal in the loan and can seek their help for the personal loan approval.

There are some minimum eligibility criteria as laid down by the banks and other lending agencies, but these set of rules are flexible and the bank and other agencies, can assess the application of the applicant based on the repayment capability of the personal loan applicant. The loan repayment capability of the loan applicant is the foremost criteria, which the banks and several other lending agencies consider with utmost priority, before making a final call on the approval or rejection of the loan application of any person, including Sameer.

Sameer can also approach the bank’s representatives directly and if he carries a strong relationship with any banker, he can convince him/her towards extending the loan to him. At the same time, Sameer can approach the parents to seek other influence and can approve those entities and convince them to extend the loan. The application for the personal loan in case of Sameer doesn’t fulfill the basic requirements, as laid down by several financial entities, but it completely depends on the sole discretion of the banks and other lenders, whether to approve the loan for him or not.

While the banks may opt for not approving the personal loan to him, there are several other lending agencies, which can easily approve the personal loan application of Sameer, evaluating his repayment capabilities.

You must remember that Sameer repayment capabilities are very good and since he carries very good repayment abilities with him, all he needs is to try to convince the lenders for the approval of the personal loan application and avail the Personal Loan. Approaching to the Fintech Companies like DealsofLoan can also, prove to be beneficial in such cases, as these fintech companies, have several other convenient ways, to help Sameer in getting a Personal Loan.

While, a job is one aspect, which is not entirely in our control, but getting a credit card and utilizing it for the payments at various places can help you in establishing your Credit History. With the usage of credit cards, you can collect some good credit points and can help you in getting yourself a good name on the CIBIL Score, which is going to help you in the longer run. Get yourself a good credit card, utilize it for the payment, and pay all its dues in the repayment cycle. Don’t default on the outstanding payment of the credit cards, and in a matter of six months, or so, you can collect a good score in your CIBIL Score, thus allowing you to get ready for any unseen future liabilities. While, Sameer doesn’t have any credit card, and thus he missed on fulfilling one condition, you can start off with the more balanced strategy towards getting yourself ready for the Personal Loan. Try accumulating a credit score of above 750, thus helping you get the Personal loan at quite an attractive rate of interest and help yourself in the process, to save a good amount of money to be paid as an interest rate.

While, Sameer may still find himself, to get an approval for the Personal Loan in any one of the many options available in the market, not everyone, has the same repayment capability, as Sameer does have. He may still, have to do his best to avail a Personal Loan, consider what your repayment capabilities are and prepare yourself before things get too late for you.

Personal Loan allows the people with the instant solution for their financial needs. In case, you are not ready to meet any unseen financial crisis, which may come uninvited; you may risk yourself with some very precarious situation. Thus, stay aware of the conditions, required for the successful applying of a Personal Loan. Beware of the conditions, if you in a new job or the first time Personal Loan borrower.

Considering, Sameer has the good repayment credentials, and thus, his efforts may land him a Personal loan, which he will utilize for buying kitchen appliance for his mother

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Author: Poonam Dambare

Poonam Dambare

Member since: Aug 24, 2018
Published articles: 47

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