Personal Loan for Salaried

Other factors considered while setting interest rates for salaried applicants include age, monthly income, job profile, employer’s profile, credit score, etc. Some lenders also offer pre-approved instant personal loans with quick loan disbursal to select customers. They also provide personal loan overdraft facility to their applicants.

Personal Loan Offers for Salaried Individuals

*Applicable for selected customers

Features of Personal Loans Offered to Salaried Employees

• Salaried individuals are offered instant personal loans at 10.49% onwards.
• The maximum loan amount is Rs 40 lakh.
• The loan tenure is generally up to 5 years. Some lenders might offer loans for up to 7 years also.
• There is no end usage restriction on personal loans for salaried, except for speculation.
• The processing fee is usually up to 4%. Some banks/NBFCs also offer processing fee waivers during special festive offers.
• Many lenders also offer pre-approved instant personal loans to select customers based on their monthly income, age, banking history and other aspects of their credit profile.

Eligibility Criteria for Salaried Employees Availing Personal Loan

• Age: 21 years (at the time of loan application) and 60 years or retirement age (at the time of loan maturity)
• Nationality: Indian resident
• Profession: Employees working in private limited company or public sector undertakings with an experience of at least 1 year
• Minimum Monthly Income: At least Rs 15,000
• Credit Score: 700 and above can increase the possibility of availing personal loan for salaried and at lower interest rates

Personal Loan Documentation for Salaried Applicants

• ID proof
• PAN card
• Signature proof
• Address proof
• Employee ID card
• Last 3 months’ salary slips
• Bank statements for past 6 months
• Latest ITR/Form 16

FAQs on Personal Loan for Salaried

At what interest rates are personal loans offered to salaried individuals?

Most private sector lenders offer personal loans to salaried individuals starting from 10.49% p.a. However, some public sector banks may offer lower interest rates on their personal loan schemes to salaried applicants.

How can salaried individuals apply for a personal loan?

Salaried individuals can apply for personal loans either by visiting their bank/NBFC branch(es) or by using their net banking or mobile banking platforms. However, making direct loan applications with multiple lenders significantly reduces their credit scores and thereby, their chances of availing the loan. To avoid this, it’s advisable to use online financial marketplaces like Paisabazaar, which allows users to compare personal loan offers from multiple partner lenders without adversely affecting their credit scores.

Do salaried individuals get lower interest rates on personal loans?

Personal loan interest rates for salaried individuals are usually lower than those offered to self-employed individuals as the higher income certainty of the former reduces the credit risk for the lenders, which then allows them to offer lower interest rates. However, the final interest rates offered to salaried applicants vis-à-vis self-employed individuals will depend on their credit profile and credit risk policies of the lender.

How long does it take for a salaried applicant to get a personal loan?

Salaried individuals applying for pre-approved personal loans can get the loan disbursed within minutes of making the loan application. Those applying for regular personal loan schemes may take a bit longer, with a turnaround time of 2-7 days for disbursement.

What is the maximum loan amount a salaried employee can avail of?

Salaried individuals can avail personal loans of up to Rs 40 lakh or even more in select cases, depending on their repayment capacity and the lender’s discretion. When determining personal loan amounts for salaried applicants, lenders use either the Multiplier Method, wherein the loan amount can go up to 10-24 times of the applicant’s monthly income, or the EMI/NMI Ratio, in which total EMIs of the applicant, including that of the proposed loan, cannot exceed the 50-55% mark of their monthly income. Some lenders may even use the combination of both to determine the eligible loan amount.

What is the processing fee charged on personal loans offered to salaried individuals?

The personal loan processing fee can be up to 4% of the loan amount. Some lenders waive off this fee during festive offers/promotional periods, in case of loan applications made by existing customers and/or applicants meeting pre-determined cut-offs in terms of their credit score, income, etc.