Personal Loan

Personal Loan for Salaried Employees | Eligibility Criteria and Features


In India, you can easily secure a personal loan if you have an income source. In certain cases, those with no income can also get a personal loan, but the probability is lower. Most banks and Non-Banking Financial Companies (NBFCs) prefer to give out personal loans for salaried individuals given the certainty of their income, and thereby repayment. Even among those who earn a consistent income, professionals with government jobs are more likely to get a personal loan because of their higher job security. Private-sector employees come in a close second. Sometimes, you can also find differential interest rates for the same personal loan for salaried employees in these sectors.

So, what determines if you will get a personal loan or not? Apart from your job, other important factors that lending institutions look at are your age, credit score, company profile, your role in the company, your net CTC or monthly income, etc. You can also get a pre-approved loan that is disbursed immediately based on some pre-determined criteria.

Key Features of a Personal Loan

Individuals mostly opt for a personal loan to take care of certain expenses that are heavy on the pockets but aspirational, like a wedding or buying a used luxury car. Here are some important things to note before opting for a personal loan for salaried individuals –

  • The interest rate on personal loans is usually on the higher end of 10% and can go even higher based on the loan amount and lending institution.
  • As a salaried person, you can get a personal loan of up to INR 40 lakhs.
  • The loan repayment tenure can range from 5 to 7 years.
  • A personal loan for salaried employees is usually devoid of any end-use restriction.
  • There is usually a processing fee of up to 4% on a personal loan, but some lending institutions can also waive this.
  • You can also get a pre-approval loan if you have a good credit score and a consistently satisfactory banking history (no defaults, a minimum balance in your bank account, etc.).
  • A personal for salaried individuals can be used for any purpose.

Eligibility Criteria for a Personal Loan

You can now plan that European vacation or a grand wedding if you meet the below-mentioned criteria (as per RBI guidelines) for an easy personal loan for salaried employees.

  • At the time of the loan application, you must be at least 21 years old.
  • Your age should not exceed 60 years old or the age of retirement at the time of loan maturity.
  • You must be an Indian citizen.
  • You must be employed by either a private limited company or a PSU (Public Sector Undertaking) for the personal loan to be approved.
  • You must have worked for at least 1 year with a consistent monthly income at the time of loan application.
  • Your monthly income should not be below INR 15,500.
  • A credit score of 750 and above is desirable to be eligible for a personal loan.

Documents Required

To avoid rejection and expedite approval, you must ensure that your documentation is spot on. Here is a list of all the important documents that you need to submit at the time of applying for a personal loan for salaried employees –

  • A duly filled and signed loan application form.
  • A recent passport-sized photograph of the applicant that is not more than 6 months old.
  • A valid identity proof: an Aadhar card, passport, PAN card, voter ID card, or driving license
  • Please show a valid proof of address, such as an Aadhar card, passport, voter ID card, driver’s license, rental agreement, proof of gas connection, bank statement, or utility bill.
  • Aadhar Card, Passport, Voter ID card, or School Admit Card as proof of age
  • Your salary slips from the last 3 months before the date of the loan application.
  • Form 16 and income tax return proof for 2 years before the date of the loan application.
  • 6 months’ bank statements.
  • Your employment proof, like an employee ID card.

Ensure that you sign all the documents before submitting them. You can submit them offline or online.

Things to Remember

Securing a personal loan is quite easy and hassle-free today. But ensuring that you check your eligibility beforehand and keep all your documents ready for submission makes the process even more stress-free. In addition,

  • Make sure that your credit score is above 750 to increase your chances of getting a loan.
  • Lenders try to keep your EMI payments to less than 50% of your total monthly income. Because of this, you should do the math before you ask for a loan amount quote.
  • You can get a personal loan for salaried individuals even if your company is not listed on the lending partner’s application form.
  • Most personal loans come with a foreclosure fee; it is best to check this information at the time of the loan application.

The financial landscape in India has changed quite a bit over the last few years. And lending institutions like Piramal Finance are quite favorable towards you as a borrower. Getting a personal loan for salaried employees is easier than ever before. All you will need to do is meet the eligibility criteria and comply with the paperwork. The rest is like a walk in the park!