Our Guide to Personal Loans and How to Get One as a New EmployeeApr 02, 2020
If you recently just landed a job – be it the usual nine-to-five or your dream gig – you’re finally getting paid for the hours you invest in your work. It also provides peace of mind knowing that being an employee assures a consistent and stable source of income, but a new job often comes with an increase in financial obligations.
Some unexpected expenses arise – from relocation needs, housing costs, wardrobe, parking and commuting, groceries, and more. The initial months in a paycheck-to-paycheck set-up doesn’t necessarily pay for all your needs in one go, so considering to get a personal loan may be one of your primary options to get you ahead of your financial responsibilities.
What are Personal Loans for New Employees?
Personal loans are a form of credit that covers different purposes to individuals in need of small and immediate financial assistance.
Unlike mortgages or car lands, it does not take much to acquire personal loans as lenders can quickly provide the funds between a hundred dollars to several thousand dollars in a quick process, so long as you meet the requirements. However, applying for personal loans as a new employee isn’t as straightforward as it is for other long-term employees.
New Employees are Considered Risky by Lenders
If you’re a new employee who has been working for less than three months, lenders may find you a risky applicant as you do not have the financial proof that can ensure they get back their loan amount, interests, and make a profit.
Since your word is not enough to mitigate the risk, lenders often find a way to accept your application either by lowering the loan amount or charging more interest. Other than that, you can increase your chances of getting a personal loan by doing the following:
Tip #1: Understand the Lender’s Minimum Requirements
When applying for a new job personal loan, lenders often require you to state the minimum income level or net monthly income amount through a letter from your employer. Some lenders also need you to meet the minimum months of full-time employment in your company before considering your application.
Tip #2: Prepare All Your Documents
In addition to your net monthly income and months of employment, you also need to submit other supporting documents like your driver’s license, pay stub, proof of residency, offer letter, bank account statements, proof of income, and more to build your credibility and establish trust with your lender.
The Bottom Line: New Employees are Viable to Get Personal Loans
Different lenders have varying requirements for qualifying new employees for a personal loan application. So long as you meet the basic requirements and have the confidence to pay what you owe in due time, you can easily acquire a personal loan in cases you need to cover for the cost of your new financial obligations.
If you’re looking to take out a personal loan in South Africa, we are your best option. Get in touch with us today to see how we can help.