How to Get a Personal Loan if You are a Salaried Employee?

Feb 18, 2020

Personal Loan feels like a boon when you have a large expense to make, regardless of whether it was a planned expense or an unplanned emergency. They are essentially unsecured loans given by lenders to individuals. People take personal loans for expenses such as medical emergencies, vacations, to clear pending debt, home renovations or other any other such expenses. Personal loans offer a great deal of flexibility and are available to all borrowers.

However, not all financial organizations offer personal loans to every customer. This is where NBFCs come into the picture, with customized products for different kinds of customers. For instance, at Fullerton India, we offer low salary personal loan, to people who have a lower than average monthly income.

Similarly, Personal loan is available for any salaried person and requires minimal documentation. Personal loans are also available for self-employed individuals and business persons. These loans typically have a maturity period of 12 months to 60 months or 1 year to 5 years. The terms of the loan vary according to the profile and requirement of the borrower.

Requirements to Get a Personal Loan for Salaried Employees

Getting a personal loan for a salaried employee is as simple as applying online with the requisite documentation. All that you need to submit are the following:

  • Salary statements for the last 3 months or Form 16 – to prove that your monthly earnings are higher than the minimum salary required for a personal loan. Additionally, if you are employed in a reputed company – there is a higher chance of your application getting approved.
  • Proofof address – which can be in the form of electricity bills, telephone bill, passport, rental agreement or other such,
  • Proof of identity – which can be your PAN card, AADHAAR card, voter card, passport, driving license, etc.,
  • Last 3 months bank statements, and
  • Self-attested passport-sized photos.
Must Read: How to Choose a Personal Loan?

At Fullerton India, the minimum salary for obtaining a personal loan is as low as ₹20,000 (INR 25,000 for Mumbai and Delhi residents) per month. Various lenders have varying policies about the maximum amount of loan that they can grant. While some may be willing to give a loan for up to 30% of the monthly salary, others may provide a loan for as high as twice your annual salary. A low salary personal loan will have a higher rate of interest or the terms of the loan may be stricter. That said, monthly salary is not the only factor used to determine eligibility for a personal loan for a salaried employee.

Determinants of Terms of Personal Loan for Salaried Employees

The maximum amount of loan you are eligible for, the rate of interest charged, and the other terms of the loan depend on the following factors:

  • Your monthly salary – meeting the minimum salary for personal loan requirements is a must.
  • Years of service at your current organization
  • Other outstanding loans if any – This will help evaluate yourrepaying capacity after deducting any existingEMIs and loan commitments you may have
  • Age – personal loans to salaried employees are generally given to applicants between21 years and 60 years of age.
  • Your credit rating or CIBIL score – You should try and maintain your CIBIL score above 700 to get favorable rates and terms.
Must Read: How to Calculate Personal Loan EMI?

Merits and Caution of Personal Loans for Salaried Employees

Personal loans, when used carefully, are a great way to tide over large expenses in life. While applying for any loan, you should always keep in mind your repayment capability. Taking a loan is a big decision and should be approached with clarity and caution. Repaying your loan in time and in full establishes you as a good contender for extending loans and increases your credit rating. Failure to do so will lower your credit rating and mark you as a risky borrower, which will make it difficult for you to get any more loans. Therefore, you are advised to consider all available options and carefully take decisions while availing a personal loan.

Trending

Also Read

Download InstaLoan App

Apply a personal loan in just 2 minutes* and get a loan upto INR 25 lakhs*, download the app Now!

Download app on Google Play StoreDownload app on Apple App Store

Quick Links