Banks and NBFCs prefer lending personal loans to salaried applicants due to their higher income certainty. Salaried applicants working with government or PSU entities are the most preferred due to their higher job security. They are followed by private sector employees working with top corporates and MNCs. Many lenders also offer preferential interest rates to those working with government/PSUs and top corporates/MNC.
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 overdraft facility to its personal loan applicants.
Compare Personal Loan Interest Rates for Salaried Individuals
|Lender||Interest Rate (p.a.)||Processing Fee (p.a.)|
|HDFC Bank||10.50% – 21%||Up to 2.5% (Maximum Rs. 25,000)|
|Kotak Mahindra Bank||10.99% onwards||Up to 2.5%|
|Federal Bank||10.49% – 17.99%||Up to 3%|
|IDFC FIRST Bank||10.49% onwards||Up to 3.5% (Minimum Rs. 2,999)**|
|ICICI Bank||10.50% onwards||Up to 2.5%|
|Axis Bank||10.25% onwards||1.5%-2%|
|Tata Capital||10.99% onwards||Rs. 749|
|Yes Bank||10.99% onwards||Up to 2.5%|
|Standard Chartered Bank||11% onwards||Up to 2.25%|
|IndusInd Bank||10.49% onwards||2.5% onwards|
|Bajaj Finserv||13% onwards||Up to 4%|
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Features of Personal Loan offered to Salaried Employees
- Salaried individuals are offered instant personal loans @ 10.25% 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.
- CIBIL score: 750 and above can increase the possibility of availing personal loan for salaried and at lower interest rates.
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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
Q. Can I get a personal loan if my credit score is less than 750?
Ans. Personal loans applicants having credit scores of 750 and above usually have higher chances of getting their loans approved. However, some banks/NBFCs approve personal loans to applicants having credit scores less than 750. Such lenders usually set higher interest rates for personal loan applicants having lower credit score.
Q. I receive a monthly income of Rs 25,000. What are the chances of my loan approval?
Ans. Many lenders offer personal loans to applicants with minimum monthly income of Rs 15,000. However, the loan approval would be subject to other eligibility parameters like your credit score, occupation profile, EMI/NMI (net monthly income) ratio, employer’s profile, age, etc. Lenders usually approve personal loans to applicants whose total EMI obligation, including the EMI of the new personal loan, do not exceed 50-55% of their net monthly income.
Q. I am a salaried employee but my company is not listed in my bank’s ‘approved list of companies’. Can I get a personal loan?
Ans. It depends on the lender. Some banks and NBFCs do not approve personal loan applicants working with organisations not included in the banks’/NBFCs’ list. However, some lenders may approve personal loan applications made by such employees if they have good credit profile. Hence, such loan applicants should visit online financial marketplaces like Paisabazaar.com before making the loan application. Such online financial marketplaces allow prospective borrowers compare personal loan interest rates and other features offered by multiple banks and NBFCs on the same platform. The offers listed are usually shown on the basis of the applicant’s eligibility, credit profile and chances of approval.