Why take a Personal Loan when you have a New Job?
Just started a new job but needs extra cash for settling down? A personal loan can help you with the extra cash flow that can help you settle down in a new city. It is difficult for a fresher to acquire a personal loan as most lenders are not willing to give loans to a new employee. Most lenders look at your past credit records along with your income stability before granting a loan. A new employee does not have a past record or income stability to be credit-worthy for a personal loan. It thus becomes a struggle for fresher or new job professionals to get a loan from the banks or other NBFCs.
A personal loan is affordable and approved without the need for collateral. It is thus accessible for freshers and new job professionals who are willing to take a loan but do not have collateral. A personal loan is an unsecured loan that is approved within minutes and you can receive the amount directly in your bank account without much hassle. A personal loan application process is easy and without the requirement of lengthy paperwork. To send a personal loan application you are not required to visit any office or branches. You can easily send a loan application sitting at the comfort of your home using a computer or even a smartphone. The process is simple and requires very little documentation to get approval for a personal loan.
3 Option to get a Personal Loan for Fresher’s
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. There are many financial institutions offering loan for low income individuals or recent graduates.
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</script>2. Loan against Securities
Often, there are trying times in one’s life which calls for financial assistance. Loans from financial institutions come to the rescue. There are many types of loans that any financial institution offers, the borrower should try to look out for favorable terms and should assess the suitability prior to taking required assistance. If the individual or applicant has investments, then there is the option of taking loan against such investments or securities. Loan against securities is typically for short term and the quantum of loan is low. Loans against securities are secured loans wherein the securities are the collateral. These loans can be used for a variety of requirements vacation, travel, medical emergencies, education etc.
List of securities eligible for the loan
Not all forms of investments are eligible for loan; also, the loan value against the cash value of each security may differ from lender to lender. If the investment is risk-free, then the percentage to cash value extended as loan will be higher. In the case of high-risk instrument, the percentage to cash value extended as loan will be lower (typically, 50% in the case of equity shares). The list of securities which are eligible for loan are:
- Insurance policies – unit linked endowment plans, income plans, conventional endowment plans (excluding term insurance policies)
- Non-convertible debentures or warrants
- National Savings Certificate or Kisan Vikas Patra
- NABARD bonds or Government bonds
- UTI bonds
- Fixed deposits
- Mutual fund units
- Demat shares
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</script>3. Concessional Loans from Employer
Loans from employer attract tax implication as perquisite Employers based on company-specific policies may extend loan to employees at either zero percent interest rate or concessional rates. Then on such concessional loans income tax is charged as a perquisite in the hands of the employee. The income tax department deems such concessional loans as savings owing to low interest rate as in a case when the loan would be taken from an outside source it would involve a higher cost element. Say for instance, if you avail a concessional loan from your employer of an amount Rs. 10 lakh at say 5 percent and this in the market is available for say 8% then the interest differential will be added to your perquisites as income, thus increasing your overall salary for taxation purpose.
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