A Step By Step Guide to Avail A Personal Loan For Salaried Employees

Banks and NBFCs prefer to lend personal loans to salaried employees because their income is more predictable. Personal loans for salaried employees can be up to Rs. 25 lakhs. The personal loan rates range from 7.90 percent to 49 percent per year. Because of their higher job security, salaried applicants working for government or PSU entities are preferred. Employees from top corporations and multinational corporations in the private sector follow them. Many lenders offer preferential interest rates to those who work with the government/public sector and large corporations/multinational corporations.

Age, monthly income, job profile, employer profile, credit score, and other factors are considered when setting interest rates for salaried applicants. Select customers can also get pre-approved instant personal loans with quick loan disbursement from some lenders. They also offer personal loan applicants an overdraft facility.

Features of Personal Loan for Salaried Employees

1. Instant personal loans are available to salaried individuals starting at 10.25 percent.
2. A maximum loan amount of Rs 40 lakh is available.
3. The loan term is usually between one and five years. Some lenders may also provide loans for up to seven years.
4. Except for speculation, personal loans for salaried people have no end-use restrictions.
5. The processing fee is usually around 4%. During special festive offers, some banks/NBFCs also waive processing fees.
6. Many lenders also provide customers with pre-approved instant personal loans based on their monthly income, age, banking history, and other aspects of their credit profile.

Eligibility criteria for availing of personal loan

The eligibility of applying for an instant personal loan in India:    

1. Age must be between 18 to 58 years old.
2. Must be a salaried employee.
3. Only Indian residents can apply for it.

Personal loan limits are determined by one's salary. You will know your eligibility after entering your information into personal loan apps. A loan can be taken for as little as Rs. 10,000 and as much as Rs. 4 lakhs.

How to get a personal loan?

There are three major routes you can take to obtain a personal loan. They are:

1. Through a commercial bank

Most people know about that method to get a personal loan because they all have an account at a bank. To grant these loans, most of these banks follow a standard procedure that includes a standard contract, paperwork, and a strict repayment option.

2. Through a co-operative bank

These banks are more popular with the rural population, despite operating on a much smaller scale than commercial banks. Because these banks are not motivated by profit, they can offer lower interest rates and more repayment options.

3. Online lenders 

This is one of the newest methods for obtaining a personal loan quickly. Many NBFCs provide an instant personal loan with fast disbursement, low-interest rates, and flexible repayment options.

Read Also: Key Factors to Consider to Get an Instant Personal Loan for Salaried Employees

Steps to avail of a Personal loan:

1. Fill out an application form

If you're already a customer, all you have to do now is verify your information and take advantage of your pre-approved offer.

If you're a new customer, you can apply for a personal loan online by filling out a simple form. Simply enter your personal, financial, and employment information. Personal loan eligibility is determined by several factors, including minimum net salary in the city of residence and age.

2. Choose a loan amount and term.

To receive instant online approval, fill in the desired loan amount and term. If you're not sure which tenor to choose or how many EMIs you'll have to pay, use the loan EMI calculator to figure it out.

Flexi term loans and Flexi interest-only loans are also available from some lenders. Each has its calculator to assist you in understanding your EMI payments. You can choose one of these loan options based on your payment capacity. The EMIs for a Flexi term loan includes both the interest and the principal. If you want lower EMIs, a Flexi interest-only loan allows you to repay the principal at the end of the loan term. 

The personal loan eligibility calculator will give you an estimate of the maximum loan amount you can get based on factors like:

1. Your salary
2. Combined monthly loan EMIs
3. Combined outstanding credit card

3. Submit your documents.

Many lenders offer a doorstep service, in which representatives come to your home and collect the necessary documents. You only need to submit your basic paperwork because the Personal Loan is not secured.

Some of these documents include:

1. KYC documents
2. Employee ID card
3. Salary slips for the previous 12 months
4. Bank account statements of your salary account for the previous 3 months
5. Some customers may be asked to submit additional documents at the time of loan processing.

4. Quick loan disbursal

Within 24 hours of submitting the documents, you will receive the funds in your bank account. 

Summary

Applicants for personal loans with credit scores of 750 or higher have a better chance of getting their loans approved. Some banks/NBFCs, on the other hand, will approve personal loans to applicants with credit scores below 750. Personal loan applicants with a low credit score typically face higher interest rates from these lenders.

Read Also: Can a Salaried Person Avail Personal Loan Without Income Proof?