A good Credit score reflects good repayment history of an individual and it is one of the most important parameters for loan sanction. Few lenders provides you with the opportunity to improve your credit rating, as we have flexible loan options available for customers without any credit history or score.
You can get a personal loan even if you have joined a job recently. But many lenders won’t approve, there will be very few lenders that will provide you the loan. They will assess your eligibility based on the income you earn and the current obligations you have such as rent, school fees for children, etc.
Benefits of Fresher Loan
- No security / collateral required
- Attractive Rate of Interest*
- Avail loan of amount up to ₹ 1,50,000
- Simplified documentation
- Funding avail from age of 21 years
- Quick processing and disbursal
Factors that will help a New Employee to get a Personal Loan
- Employer Organization and Employment Type
- Total years of experience
- Current liabilities
- Assets, if any
- Credit score and history
Fresher can get personal loan through following 4 ways
- Unsecured personal loan
- Secured loan i.e. against securities.
- Personal Loan with a Co-signer
- Loan from employer or salary advance
1. Unsecured Personal Loan
This traditional way of applying for loan at banks i.e. filling the application online/visit physically, submit all the documents, wait for approval. And if approved, money will be credited to the account. No security asked by the bank.
Assuming new employee may not have bank statement or last 3 months salary slip, which is required by the bank. But freshers having job offer letter in hand from a reputed company can apply in any of the above listed banks. For e.g. employees of big companies like TCS, Infosys, Wipro and others can apply for loan and chances of approval are very high.
However remember that, this type of loan is very expensive. Because the interest rate is very high above 18%. So this should be the last option for the fresher, provided the loan amount required is small. For low cost personal loan, below listed options are highly recommended. Unsecured loan offers high loan amount depending on the borrower’s repayment capacity.
2. Personal Loan against Securities
This is the guaranteed option for new employees to get personal loan. Loan against securities means keeping your asset in lieu with the lender and get money against this asset Fixed Deposit.
- Fixed Deposit
- LIC policy
- Shares or mutual funds
Individuals can get Finance against following 4 Securities
- Against Fixed Deposit
Freshers need to open FD account with the bank and against this account they can easily get loan amount which is typically 85%-90% of the loan amount. So if amount in the account is Rs. 1 lakh, then you can get loan of around Rs. 90,000 or Rs. 85,000. This type of loan is also a money saver as the interest rate is very low. Here are the banks offering loan against fixed deposit:
- Against LIC Policy
This type of loan is also big time money saver and the loan amount is nearly equal to 90% of the surrender value of the policy. So for e.g. if the surrender value is Rs. 1,00,000 then the loan amount will be Rs. 90, 000. Fresher needs to have active LIC policy on his/her name.
- Against Shares or Mutual Fund
Another fastest way for a fresher to raise money during emergency is by pledging shares or mutual fund. These assets have to be kept as collateral with the bank and against the value of the shares/mutual fund and the company, loan is either approved or rejected.
3. Apply for a Personal Loan with a Co-signer
You can borrow a personal loan from a bank or NBFC with a co-signer which can be your parents, spouse or relatives. It helps you borrow money from the bank. And the co-signer will be liable to pay the borrowed amount if you are unable to do so. The eligibility criteria for a co-signer to apply for a personal loan are as follows-
- The co-signer should have a regular income
- His/her credit score must be strong
- There are no liabilities currently with the co-signer
When you use a co-signer, make sure you understand the personal loan terms and conditions. When you are unable to pay, the co-signer will be notified to do the loan payment. But if you want your credit history to be strong, ensure you pay on time by maintaining discipline.
- Apply for a Lower Loan Amount
Your loan would be approved quickly if the amount is Lower. This will ensure you can repay the loan on time. It will ensure there’s no risk associated with the loan.
- Offer Security
Instead of borrowing an unsecured personal loan, you could borrow a secured loan by providing securities such as fixed deposits, life insurance, shares, mutual funds, etc. The interest rate of secured loans is lower compared to personal loans. So your needs are met and the loan is approved without any hassle.
4. Personal Loan for New Joinee from Employer
There are many employers who offer loan to their employees at a very concessional interest rate or at zero interest. This is also called as salary advance. The money is deposited by the employer in the salary account. However the approval criteria are solely dependent on the company’s compliance rules. Also there is no credit history checked.
Checklist for First-time Applicants of Personal Loans
1. Choose the right Lender
Considering the number of banks and NBFCs offering personal loans at attractive terms, choosing the right lender takes a lot of research and comparison. Lenders keep spamming people with calls and text messages, offering loans and other financial products and services like credit cards. It is important to refrain from falling for these calls and text messages. If you really want to take a personal loan, go online and compare various options in order to make an informed decision.
2. Compute the Rate of Interest
Banks are masters of financial jugglery. They often offer loans at flat interest rates as a means to lure customers into believing that they are offered the best terms. However, flat rates are misleading as the reduction in balance post each EMI payment is not taken into consideration. As such, you will be paying a lot more towards the interest component of the loan. The reducing balance method, on the other hand, takes into consideration the reduction in balance post each EMI payment, thereby lowering your financial burden.
3. Check the Fees and Charges
There are certain fees and charges that are applicable to personal loans, such as processing fees, foreclosure fees, etc. Look for these fees and charges in the loan document or on the lender’s website as doing so will ensure that you do not end up paying towards these charges later on.
4. Check the Foreclosure Rules
In case you wish to clear off your loan before the tenure ends, lenders usually charge foreclosure fees in order to recover some of the interest they expected to receive from the loan. It is for this reason you need to check the foreclosure rules carefully and see after how long you can close the loan, and what the fees associated with foreclosure are.
Where to get a Personal Loan as Fresher ?
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
5 Reasons to choose Omozing
1. Loans from INR 10k to INR 10 lakhs
Personal Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 10,000 to INR 10,00,000. The Minimum and maximum repayment period ranges from 1 month to 48 months. CIBIL 600+ all company categories (including LLP, Self Employed, Proprietorship)
2. Cutomised Tailor Options
- Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
- You have the freedom to utilise your loan anyway you want, whether for business or for immediate personal needs.
- Flexible repayment options depending on your specific cash flow and budget, as well as conditions that is beneficial to your position.
3. Lower CIBIL
While most lenders require borrowers to have a CIBIL score of over 750, at Omozing.com provide loans even with 600. Besides the CIBIL score, we also considers your age, employment status, and net monthly income.
4. Ways to apply
You can apply for a personal loan through us by 2 ways:
1. You can download our Mobile Application from Google app store.
2. Apply on portal using out Personal Loan link
5. Prompt Loan Disbursal
An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.