Personal Loans for Salaried Employees

Personal Loans: A Quick Guide For Salaried Employees

You can take personal loans for planned as well as unplanned expenditures of your life. It is true that it is easier for people employed with private limited firms to get personal loans, but they need to meet the eligibility criteria of the lender. 

This article is a quick guide to help you understand the basics of personal loans for self-employed.

Most lenders offer easy personal loans

Yes, it is easier to avail loans from NBFCs, but you have to make sure of the following:

  1. You have the documents as mentioned on the lender’s website
  2. You are filling the form correctly and accurately
  3. Your credit score requirement meets the minimum credit score requirement set by the lender

Salaried employees looking for a personal loan are often confused about the loan, processes involved and uses. This article gives you a quick insight and answers the common queries

What is personal loan for salaried employees?

A loan offered by lending institutions to meet the personal expenditure of salaried employees. You must earn a salary from a private limited firm or government organization. 

What is the maximum amount I am eligible for?

Usually, the maximum loan amount you can get is Rs 25 lakh, but the amount varies across lenders. Additionally, the final amount depends on your eligibility. Use a personal loan calculator to know the EMI you will pay every month. 

Is there a requirement of minimum income?

Yes, there is. Typically, if you are employed in Delhi or Mumbai, your salary should be Rs 25,000 per month minimum and for other cities, it should be Rs. 20,000 per month.  You will be asked to submit at least three months salary slips.

What are the documents required?

Here is the list of the documents required:

  1. Application form of the lender that is filled correctly and signed 
  2. Passport size photographs
  3. You have to submit the following proofs
    1. Identity (Pan Card, Driving License)
    2. Income  (Salary Statements)
    3. Age (Pan Card, Driving License, Passport)
    4. Address (Electricity Bill, Passport)

What are the other terms and conditions?

The exact tenure and interest rate would vary from lender to lender.

  • The loan tenure ranges from 12 months to 60 months
  • Annual interest rates start from 11.99% per annum

The approval of your instant personal loan will depend upon your profile and credit score. 

Additional Read: Personal Loan for Salaried Employee: Everything You Need to Know

Important Points to Note Down When Taking Personal Loans for Salaried in India

As a salaried employee, you come across various situations where you require extra cash to cover your financial needs. This is where a personal loan can prove to be an ideal financial tool for you. Many lending institutions sanction instant personal loans for salaried employees to help them deal with unexpected expenses with ease.

The amount, tenure, and interest rate to be charged on personal loans for salaried employees depend on factors such as applicant’s salary, company reputation, job profile, work experience, credit score, and repayment history. Further, this loan is an unsecured loan, which means that you don’t have to pledge any form of collateral to avail it. 

Most salaried employees can apply for instant personal loans. However, you have to fulfill the following eligibility criteria, which may vary from lender to lender. 

  1. The borrower’s minimum age must be 21 years and not more than 60 years at the time of completion of the personal loan tenure. 
  2. The applicant must have a good CIBIL score to secure personal loans at nominal interest rates. 
  3. Lastly, the applicant’s minimum monthly salary must be Rs. 20,000, which might be higher or lower according to the lender. 

Remember, you should opt for a personal loan only if you have a well-defined plan to repay the loan amount on time and avoid late fees. 

Additional Read: What Are The Mandatory Documents to Get Personal Loan For A Self Employed?