Personal Loan

Features Of Personal Loans Offered To Salaried Employees


NBFCs and Banks usually prefer to lend personal loans to salaried employees. This is because they have a fixed source of income. So they are less likely to falter on loan repayments.

Government-salaried employees are preferred even more because of their higher job security. Government employees are followed by private sector employees working at MNCs and top corporations.

In addition, many lenders even offer preferential interest rates to those working with PSUs/government and MNCs/top corporations.

Now, if you are a salaried employee, you must be curious to know more about personal loans. Thus, here’s an article discussing some of the features of Personal Loans for salaried employees. 

7 Features of Loan offered to Salaried Employees

While offering loans to salaried employees, lenders consider several other factors. These are monthly income, age, job profile, credit score, employer’s profile, etc. Some lenders even provide pre-approved instant personal loans, with the provision of quick loan disbursal to chosen candidates.

However, before opting for a personal loan, make sure to know some of the best features of personal loans offered to salaried employees by various banks and NBFCs –

  1. No security/collateral required

Personal loans are mainly unsecured loans. This means that while opting for a personal loan, you need to provide any security/collateral to the lender in the form of assets such as your car or house. The loan is approved per your creditworthiness. This in turn depends on your monthly income, credit score, employer reputation, repayment history, etc. Thus, your assets remain safe even if you fail to repay the loan within the specified period. 

However, personal loans are unsecured loans and thus riskier for lenders. Therefore the interest rates on personal loans are generally higher to mitigate the risk. 

  1. Flexibility of Use

A personal loan is highly flexible. This means that you can use a personal loan to meet your different financial requirements. You can use a home loan or a car loan for specific purposes only. But you can use a personal loan for almost any financial necessity without limitations.

You can use a personal loan to meet emergency medical expenses, for a house renovation, for debt consolidation, for wedding purposes, etc. Thus, personal loans are an easy way to get anyone out of an immediate cash crunch. 

  1. Quick disbursal

Personal loans are known for their quick disbursal feature. The time for disbursal generally varies from one bank/lender to another. But personal loans are usually disbursed within 24 hours. In some rare cases, the disbursal period might be 72 hours.

A loan is disbursed as soon as your loan application is approved. Turnaround times can even be as small as a few minutes if you can avail of a pre-approved loan offer. A home loan is usually disbursed within 3-4 weeks. But a personal loan barely requires a day. As a result, a personal loan is the best financial instrument to meet your immediate financial obligations. 

  1. Involves minimal paperwork

You can quickly disburse personal loans. One of the reasons for this is that the personal loan approval process involves minimal paperwork. You can apply for a personal loan offline or online with minimal documentation. Key documents that the lender asks the applicant to provide involve merely an address proof, an identity proof, and an income proof. 

Many banks and money-lending organisations offer doorstep documentation services. Here a representative will meet you at a convenient, predetermined time and place to help you with the documentation process. Also, while applying for a personal loan, if you have any queries or face any issues, you can easily call the customer care centre of the lender. A representative will respond to your questions and assist you in completing the loan application procedure. 

  1. Helps build a credit score

Another important feature of personal loans is that it helps you to build or improve your credit score. If you are new to credit or have a poor credit score, then availing of affordable personal loans and repaying them within the agreed-upon period can be a great way to build your credit score. Your credit score will increase as you keep paying your EMIs at the pre-decided interest rate and on time.

However, it would be best if you avail of a loan amount well within your repayment ability. This is because it can be detrimental to your credit score if you fail to make the EMI payments on time.

  1. Attractive interest rates

Another significant feature of a personal loan is that these loans usually come with affordable and attractive interest rates. This makes personal loans widely affordable loan options. Moreover, you can qualify for even better interest rates if you have a good credit history. A loan option having a high-interest rate defeats the purpose of borrowing the money. This is because such a loan worsens your financial condition.

  1. Tax benefits

Personal loans usually do not offer tax benefits. However, exceptions are there. If you use your loan amount for home renovation, construction, or making a downpayment for your house, you can claim tax deductions of up to Rs. 2 lakhs as per Section 24 B of the Income Tax Act, 1961. However, this tax benefit is subject to specific terms and conditions; thus, only some are eligible for it. 


One can thus easily conclude that both salaried and non-salaried people can opt for personal loans. But the loan application of a salaried individual usually gets an upper edge of approval. Today, several banks and NBFCs are more than willing to offer people personal loans for salaried employees. 

Piramal Finance is one such well-known registered finance company that offers quick, hassle-free, and easy personal loans for salaried employees with zero prepayment and foreclosure charges. They guarantee quick sanction and instant loan disbursal, pocket-friendly monthly EMIs, flexible repayment tenure starting from 12 months to 60 months, and minimum documentation. They offer personal loans with interest rates starting from just 12.99% per annum. Their team of expert financial advisors would also help you through the entire loan application process and would be more than happy to respond to your queries. For further details, visit their official website now!