The prolonged lockdown due to the Covid-19 pandemic has caused severe economic consequences. Even with calibrated relaxation of lockdown in most parts of India, several companies are still reeling from the effects of the complete lockdown enforced in the past few months.
Countless companies pan-India have resorted to slashing salaries of employees, putting newly hired staff on hold, or worse, letting go of employees. According to an Economic Times, 39% of the respondents have faced salary cuts, and 15% of them have been laid off since lockdown began in India.
In such times, the easy availability of personal loan for salaried professionals can offer individuals the much-needed respite from financial troubles.
Loan Options for Salaried Professionals
Over the past few years, the financial ecosystem of India has undergone massive changes. One of these changes is the considerable increase in viable loan options for salaried individuals, whether it’s an advance salary loan or a traditional personal loan. A primary reason for that is the addition of several lending institutions apart from banks and NBFCs.
These external funding options provide a good way out during these trying times. Salaried individuals can avail such unsecured loans to address their fixed obligations, like credit card dues, electricity bills, etc. For instance, individuals facing pay cuts can avail a low salary personal loan to mitigate their monthly expenses.
Although reasonably accessible, reputed financial institutions keep in place stringent eligibility criteria to provide a personal loan.
Here are the eligibility criteria for a personal loan for salaried individuals in India:
- Individual’s credit score should be above 700.
- Applicants should be between 18 and 60 years of age.
- Minimum monthly income should exceed the bracket of Rs. 15000 – Rs. 20000.
- Applicant should be stably employed.
This is only an indicative list noting the essential characteristics of eligibility criteria for a personal loan. They vary across different lenders. For instance, reputed financial institutions look for even better credentials to merely approve a personal loan.
On the other hand, financing bodies with relaxed criteria for a loan against salary charge considerably high interest rates that can overburden a borrower potentially in these times of extensive financial crunch.
So, how to overcome this financial dilemma? It may be time to look for an alternative!
In this situation, a much convenient option financially would be utilising the idle equity on your gold possessions to avail a low-interest personal loan for salaried professionals. Rupeek Fintech Pvt. Ltd. also provides the unique Rupeek Quick facility with which you can further reduce your monetary burden.
What is the Rupeek Quick Facility?
Let’s first understand how a basic gold loan works, in case you don’t know it already.
When you apply for a gold loan, a financial institution evaluates the gold items and sanctions a loan amount against their value and keeps those items as collateral. You pay minimal interest on the entire sanctioned quantum throughout the tenure. Finally, when you repay the loan in full after completion of the tenure, you can release your gold assets from the said financial institution.
With the Rupeek Quick, there’s one significant difference with traditional gold loans. When you pledge your gold possessions, the financial institution provides a line of credit against their value. You can withdraw any amount you need at any time from this credit line, and pay interest only on the withdrawn amount.
For example, you have been sanctioned a credit line of Rs. 7 Lakh against your gold possessions. But, you withdraw only Rs. 1 Lakh during the tenure. Thus, you pay interest on Rs. 1 Lakh, instead of the entire sanctioned limit.
This facility brings down the total cost of loan substantially and allows you to tide over the financial crisis with more efficiency. Thus, if you have recently faced a pay cut, this facility acts as a comfortable low salary personal loan.
Take a look at the nuances of this facility.
- You pledge the gold items you possess and get a line of credit based on their market value.
- When in need of funds, you can transfer the required amount from the loan account to your bank account at any time through Rupeek’s app or website.
- You can repay that amount anytime you want within the agreed-upon tenure. This way, you won’t have to stress over repayment every month.
- You can also release your gold possessions whenever you want, with industry-first doorstep service.
Plus, you do not need to satisfy any eligibility criteria to avail this loan facility. Therefore, even with an indefinite leave from employment, you can get this secured advance salary loan without hassle to address your monetary requirements.
But, there’s more to a gold loan from Rupeek than this facility. Read along!
How can a Gold Personal Loan for Salaried Professionals from Rupeek Help Borrowers?
The fintech lender provides gold loan against salary with comprehensive customer-oriented features to convenience the borrowers. These points mentioned below will help you understand how:
- Variety of repayment schemes
It is quintessential in these times of crises to be in complete control of your finances. Thus, with Rupeek, you have the flexibility to choose a repayment option that suits your financial convenience.
You can choose to pay only the interest amount every month and settling the principal at the end of the term. Or, you can defer the entire repayment till the end of the tenure by opting for a single bullet payment. The latter scheme is ideal if you prefer to keep out of the hassle of routine repayment or have unpredictable income at this point.
- Nominal interest rates
Unlike other kinds of loan against salary, a gold loan is secured. Naturally, it invites a noticeably low interest rate. This feature ensures your finances are not overburdened during repayment.
- Substantial per gram value
You can secure a considerable amount as a low salary personal loan by collateralising your assets with a high loan to value (LTV) ratio. LTV denotes the percentage of your gold items’ valuation sanctioned as loan. Moreover, it does not involve any spending constraints. So you can utilise such quantum to address a myriad of expenses.
- Doorstep loan with instant approval and maximum security
Gone are the days when you had to stand in line for hours to apply for a personal loan. You can get a first of its kind, doorstep loan service with Rupeek. When you apply for an advance salary loan against your gold, a representative is sent to your place.
The individual appraises the items to be pledged and sends a request for approval accordingly, which takes mere minutes. Upon approval, the amount is disbursed to your account almost instantly. In total, the overall process takes under 30 minutes.
Moreover, the representative leaves with your pledged gold items only when you receive the loan amount. The gold is transferred in a GPS-traceable bag and deposited in a high-security vault with a partner bank in your vicinity.
Thus, with these advantages and more, a gold loan effectively acts as an ideal funding solution over other options for salaried individuals during these testing times.