Personal Loan for Salaried Individuals

If you are a salaried person and in need of financial assistance, a personal loan may be a viable option for you. Here, we will discuss personal loans in detail and how they can benefit salaried individuals.

Apply now
personal-loan

Get Instant

Approval

Direct Cash

Transfer

Lowest

Interest Rates

Minimal

Documentation

Benefits of Personal Loan for Salaried Individuals

There are several benefits of availing a personal loan for salaried individuals. Some of them are:

  • No Collateral Required

As mentioned earlier, personal loans are unsecured loans that do not require any collateral or security. This makes it easier for salaried individuals to avail of a loan without risking any of their assets.

  • Quick Processing

Personal loans are usually processed quickly, and the funds are disbursed within a few days of approval. This makes it an ideal option for those who need funds urgently.

  • Flexible Repayment Tenure

Personal loans come with a flexible repayment tenure, which ranges from 1 to 5 years. This makes it easier for borrowers to plan their repayment schedule and manage their finances accordingly.

  • Competitive Interest Rates

Personal loans are offered at competitive interest rates, which makes it an affordable option for salaried individuals. The interest rates are usually fixed, which means that the EMI amount remains the same throughout the loan tenure.

  • No Restriction on End Use

Personal loans can be availed for various purposes, and there is no restriction on the end use of the loan amount. This gives salaried individuals the freedom to use the loan amount as per their requirements

Interest rates from Popular Banks and NBFCs for Salaried Individuals

Banks
InstitutionInterest ratesLoan amount
DBS bankFrom 10.99%Upto 15 Lakhs
HDFCFrom 10.5%Upto 40 Lakhs
Axis BankFrom 10.49%`Upto 40 Lakhs
ICICI bank10.75%-19%Upto 40 Lakhs
Bank of Baroda10.75% – 18.5%Upto 5 Lakhs
SBIFrom 11%Upto 30 Lakhs
IndusIndFrom 10.49%Upto 50 Lakhs
Yes BankFrom 10.99%Upto 40 Lakhs
Standard CharteredFrom 11.5%Upto 50 lakhs
IDFCFrom 10.49%Upto 50 Lakhs
Kotak MahindraFrom 10.99%Upto 40 Lakhs
PNBFrom 11.40%Upto 20 Lakhs
Bandhan bankFrom 11.55%Upto 25 Lakhs
NBFCs
InstitutionInterest ratesLoan amount
Piramal FinanceFrom 12.99%Upto 35 Lakhs
Shriram FinanceFrom 14%Upto 35 Lakhs
Tata CapitalFrom 10.99%Upto 35 Lakhs
InCredFrom 18%Upto 3 Lakhs
FinnableFrom 16%Upto 10 Lakhs
PaySenseFrom 16.8%Upto  5 Lakhs
PoonawallaFrom 9.99%Upto 30 Lakhs
FullertonFrom 11.99%Upto 25 Lakhs
LendingKartFrom 12%Upto 3 Lakhs
Axis FinanceFrom 13%Upto 25 Lakhs
L&T FinanceFrom 12%Upto 7 Lakhs
Mahindra FinanceFrom 10.99%Upto 10 Lakhs
Aditya BirlaFrom 11.99%Upto 50 Lakhs
Bajaj FinanceFrom 11%Upto 50 Lakhs
Calculators

Eligibility for a Personal Loan for Salaried Individuals

To avail of a personal loan, you need to fulfill certain eligibility criteria. These criteria may vary from lender to lender, but some of the common requirements are:

  • Age: You must be at least 21 years old to apply for a personal loan.
  • Income: As a salaried person, you need to have a steady source of income to be eligible for a personal loan. Most lenders require a minimum monthly income of Rs. 15,000-20,000.
  • Credit Score: Your credit score plays a crucial role in determining your eligibility for a personal loan. A credit score of 750 or above is usually considered good by most lenders.
  • Employment: You should be a salaried employee with a stable job for at least 2-3 years.

Salaried Individuals vs. Self-Employed

FeatureSalaried IndividualsSelf-Employed
EligibilityEasier to qualify, requires regular employment and proof of income (salary slips)Can be more challenging, requires proof of business income and stability
Interest RatesGenerally lower interest rates due to perceived lower riskGenerally higher interest rates due to perceived higher risk and income fluctuation
Loan AmountCan borrow higher loan amounts depending on salary and credit scoreMay face lower loan limits due to income verification complexity
DocumentationRequires basic documents like salary slips, bank statements, and ITRRequires more extensive documentation like business income proof, tax returns, and financial statements
Processing TimeFaster processing with streamlined verification of salary and credit historySlower processing due to in-depth income verification and documentation requirements
CollateralUsually not required (unsecured loans)May be required depending on lender and loan amount
Repayment FlexibilityFixed monthly installments (EMIs) based on loan termMay have more flexible repayment options based on business income fluctuations
Additional BenefitsMay offer salary advance facilities, overdraft protection, etc.May offer loan against property or business assets
Personal Loans by Bank