A salaried individual is a general employee working in a servicing or manufacturing industry under the supervision of a higher authority (Usually the employer). All employee’s monthly or yearly incomes are discussed before their joining and therefore it is a stable income. Having a stable and secure income helps the employee get a personal loan when he needs emergency financial assistance. But anyways the lenders always do prefer a salaried person over a self-employed person because of their manifested high credit worthiness. Though still, a person needs to follow the protocol and submit personal loan documents, to procure the personal loan.
Why does a salaried Individual need a personal loan?
We know that every salaried individual already does have a stable (over the minimum wage) income. But they take out personal loans because of sudden emergencies, that they don’t have the necessary funds for at this moment. However, they will gather the funds eventually, as a form of income and then pay back the loan taken. Some of these emergencies may include financial depression, suddenly planned tours, medical emergencies, outstanding debts, and others.
Documents required for salaried individual
To apply for a personal loan, a salaried individual needs to submit some basic and important personal loan documents that support his creditworthiness to the lender. Those documents are mentioned below.
The identity of a person with his residential status, deducing him to be a law-abiding citizen of India is necessary when applying for a personal loan. An applicant can submit any one of the following documents to verify his identity as; Driver’s license, pan, passport, or aadhar.
It does not matter whether the applicant is a salaried employee or a self-employed individual, one has to always present some preliminary documents such as a copy of the passport-sized photo of the applicant and most importantly the loan application, that states the purpose, amount, rate interest, repayment period of the personal loan.
Residence ownership proof
Any salaried employee applying for a personal loan needs to keep the ownership of his residency-related documents ready. These documents are strictly required for conducting a financial evaluation of the borrower. The applicant can present any of the following documents such as; property documents, and utility bills.
Residence address proof
The residency address of the borrower is also kept as a record by the lender institution for strictly emergency contact purposes. A borrower can share any of the following documents that vouch for his residence address such as; passport, utility bill, aadhar, etc.
Salaried individuals do need to provide their income proofs also, to show the lender that they are capable of repaying the nbfc personal loan amount. The applicants are only counted as eligible when they do have a monthly income of over 15,000 rupees. That’s why the loan applicant needs to submit all the documents such as; form 16, the preceding 6month’s bank statement, and the preceding 6 months’ salary slips.
Job security proof
Job security or job continuity proof mainly manifests the applicant’s current and future career charts. It helps the lender assess whether the job of the applicant is stable and continuing or whether will it be over before his loan repayment period. The applicant needs to present his current employer’s appointment letter and certificate of experience from the previous employer to ace this document’s requirement of a personal loan.
In conclusion, a salaried employer may also apply for a personal loan when in need of financial assistance. And hero fincorp is always there to help people financially but to keep that process quick and collateral-free, it needs personal loan documents that are required.