Benefits of Taking Personal Loan for Salaried

Sudden breakdown of the deadly Covid-19 pandemic has adversely impacted the economy globally. Both self-employed and salaried individuals have experienced financial losses in the year 2020. Many individuals lost their jobs, and several companies got dissolved. But as the saying goes, there is always light at the end of the tunnel, many financial institutions came ahead to offer personal loans. Personal loan for salaried individuals is indeed a boon that has supported many families financially during the lockdown phase.

Unlike other loans, there is no security involved with a personal loan against any asset. Personal loans support different purposes such as home renovation, education, vacation, buying a smartphone, new vehicle etc. Salaried individuals acquire loan effortlessly as their fixed monthly income is reflected in the salary slips. Those with a high credit score canget aloan with great ease. Benefits of personal loan for salaried are countless:

• Minimal documentation: Personal loan verification online involves paperless documentation. Submit the KYC details for quick loan approval.
• A fixed-rate of interest: Personal loans are generally given at a fixed interest rate. The rate of interest does not fluctuate based on the changing market rate.
• Flexibility to select the tenure: The tenure goes up to 3-5 years. Borrowers have the flexibility to choose the tenure using the EMI calculator tool. Longer the tenure of a loan, lower the EMIand vice versa.
• The benefit of Tax: Salaried individuals get tax benefits on personal loans. You can avail tax deduction every financial year. But, ensure all the documents favour the real purpose of the loan. It doesn’t work if a vehicle loan is utilized for paying off bills.
• Quick Approval: Financial institutions provide online loan facility with instant loan apps that speed up the application, approval and disbursal process.
• Limitless Usage: A personal loan can be used for various reasons. It is one of the quickest loan approval products when you are in urgent need for funds. Salaried individuals benefit the most from the personal loan as they easily meet the required eligibility criteria for personal loan.
• Increases Credit Score: The credit history of a salaried person increases if a personal loan is cleared in the given tenure. Timely payment of EMIs not only improves the credit score but also polishes borrower’s credibility to avail loans in future.

Therefore, a personal loan for a salaried person is beneficial in many ways. A salaried individual has a fixed income that confirms he/she will pay his loans on time. The risk involved with salaried borrowers is less as compared to loans offered to self-employed people.