Securing a loan in India can be daunting for many, as the approval process often requires tedious steps with complicated procedures. Add to that strict eligibility criteria regarding credit scores, monthly income, employment stability, etc., and borrowers might consider quitting the loan application process before it has actually begun.
What’s more, you may acquire a loan with relative ease if you are employed with a reputed, listed organisation. However, things get even trickier if you’re employed at a non-listed company.
If you’re working at a non-listed company and are finding it hard to access credit, this article is for you. Here, we discuss why you can consider a personal loan for your financial needs and how to go about it.
What is a Non-listed Company?
Before we dive into personal loans for non-listed company employees, let’s discuss what we mean by non-listed companies in the first place.
Non-listed companies are private firms that do not trade publicly on any stock exchange. Simply put, the public can sell and purchase the stocks of listed companies. Unlike listed firms, which abide by the SEBI (Securities and Exchange Board of India) guidelines, non-listed firms follow the regulations set by the Central Government.
Challenges in Loan Application for Employees of a Non-listed Company
1. Limited employer credibility
Lenders perceive non-listed companies as generally less reliable as compared to listed companies due to the lack of publicly available financial statements. This lack of visibility into the financial strength of the company trickles down to the employees of a non-listed company during their loan application in the form of job insecurity.
If lenders aren’t confident about your employability and, by extension, your capacity to repay the loan, they can be hesitant to offer credit.
2. Strict Documentation
With limited financial insights and a lack of credit ratings, lenders might require non-listed company employees to furnish additional documents to verify creditworthiness. This makes the loan application process difficult and tedious for many.
Personal Loans for Non-listed Company Employees
Personal loans are an effective financial solution for employees of non-listed companies seeking funds for various individual needs.
These unsecured loans allow you to finance goals such as home renovations, medical emergencies, or even a dream vacation without requiring collateral. Further, they often come with competitive interest rates and flexible repayment terms. The convenience and versatility of personal loans make them a preferred choice among non-listed company employees.
Personal loan: Eligibility Criteria
Personal loans for non-listed company employees have certain eligibility criteria. While these can vary with financial institutions, here are some general criteria you must fulfil for a smooth loan application process.
- Age: Applicants must be between 21 and 58 years old.
- Income: A minimum monthly salary of ₹15,000 is necessary, though this can vary based on location and lender.
- Employment: Applicants must have at least one year of work experience.
- Credit Score: A score of 650 or above is preferred by most lenders.
You can also consider checking your personal loan eligibility online with a personal loan eligibility criteria calculator. This free online tool helps determine the loan amount you can borrow by considering factors such as monthly income, expenses, loan tenure, and interest rate.
It provides quick results, allowing you to confidently estimate eligibility and proceed with loan applications.
Personal Loan: Documents Required
While the documents required by each financial institution can vary, here are some documents you should keep prepared for the process:
- Identity Proof: Aadhaar card, PAN card, or passport.
- Address Proof: Utility bills, rental agreements, or Aadhaar card.
- Income Proof: Recent salary slips, bank statements, Form 16, and employment certificate.
Personal Loan: Application Process
Once you’ve confirmed you meet the eligibility criteria and have all the documents ready, all you have left to do is apply for a personal loan for non-listed company employees. You can do so online as well as offline.
Online method
Step 1: Navigate to your chosen lender’s site.
Step 2: Post sign up or log in, complete the application form and upload the necessary documents.
Step 3: Submit the application.
Offline Method
Visit your chosen financial institution’s nearest branch with all required documents. A representative will then assist you in completing the application process.
You will be notified once the personal loan for non-listed company employees is approved.
Optimise Loan Management and Repayment
Effective loan management is necessary to ensure a smooth repayment experience. Here are some strategies for this.
- Set reminders or automate EMI payments to help avoid missing deadlines.
- Monitor your repayment progress regularly through your chosen financial institution’s app to stay informed about payments and outstanding amounts.
- Consider making partial prepayments using bonuses or savings to help reduce the loan tenure or interest burden in the long run.
Conclusion
Applying for credit as an employee of a non-listed company can seem overwhelming, but with the guide we’ve offered you above, all you need to do is analyse and compare lenders that offer personal loans for non-listed company employees.And while there are many in the market, Tata Capital emerges as the leading financial institution for these loans. We offer PL loans with easy eligibility criteria, attractive interest rates, flexible repayment schedules and quick approvals. So, apply for a Tata Capital personal loan for non-listed company employees and finance your dreams.
FAQs
You can acquire a loan even if you’re employed at a non-listed company. Tata Capital offers personal loans at attractive interest rates, quick approvals and easy repayment terms.
If you want to check whether or not your company is listed for a personal loan, you can visit the financial institution’s online platform to access company eligibility lists. Alternatively, search online for similar lists or contact your financial institution to confirm your employer's eligibility.
16 December 2024
5 mins read
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