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.
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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
| Institution | Interest rates | Loan amount |
| HDFC | From 10.5% | Upto 40 Lakhs |
| Axis Bank | From 10.49%` | Upto 40 Lakhs |
| ICICI bank | 10.75%-19% | Upto 40 Lakhs |
| Bank of Baroda | 10.75% – 18.5% | Upto 5 Lakhs |
| SBI | From 11% | Upto 30 Lakhs |
| IndusInd | From 10.49% | Upto 50 Lakhs |
| Yes Bank | From 10.99% | Upto 40 Lakhs |
| Standard Chartered | From 11.5% | Upto 50 lakhs |
| IDFC | From 10.49% | Upto 50 Lakhs |
| Kotak Mahindra | From 10.99% | Upto 40 Lakhs |
| PNB | From 11.40% | Upto 20 Lakhs |
| Bandhan bank | From 11.55% | Upto 25 Lakhs |
| Institution | Interest rates | Loan amount |
| Tata Capital | From 10.99% | Upto 35 Lakhs |
| InCred | From 18% | Upto 3 Lakhs |
| Finnable | From 16% | Upto 10 Lakhs |
| PaySense | From 16.8% | Upto 5 Lakhs |
| Poonawalla | From 9.99% | Upto 30 Lakhs |
| Fullerton | From 11.99% | Upto 25 Lakhs |
| LendingKart | From 12% | Upto 3 Lakhs |
| Axis Finance | From 13% | Upto 25 Lakhs |
| L&T Finance | From 12% | Upto 7 Lakhs |
| Mahindra Finance | From 10.99% | Upto 10 Lakhs |
| Aditya Birla | From 11.99% | Upto 50 Lakhs |
| Bajaj Finance | From 11% | Upto 50 Lakhs |
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
| Feature | Salaried Individuals | Self-Employed |
|---|---|---|
| Eligibility | Easier to qualify, requires regular employment and proof of income (salary slips) | Can be more challenging, requires proof of business income and stability |
| Interest Rates | Generally lower interest rates due to perceived lower risk | Generally higher interest rates due to perceived higher risk and income fluctuation |
| Loan Amount | Can borrow higher loan amounts depending on salary and credit score | May face lower loan limits due to income verification complexity |
| Documentation | Requires basic documents like salary slips, bank statements, and ITR | Requires more extensive documentation like business income proof, tax returns, and financial statements |
| Processing Time | Faster processing with streamlined verification of salary and credit history | Slower processing due to in-depth income verification and documentation requirements |
| Collateral | Usually not required (unsecured loans) | May be required depending on lender and loan amount |
| Repayment Flexibility | Fixed monthly installments (EMIs) based on loan term | May have more flexible repayment options based on business income fluctuations |
| Additional Benefits | May offer salary advance facilities, overdraft protection, etc. | May offer loan against property or business assets |
NBFCs
- Rs.50 lakh Personal Loan
- Rs.40 lakh Personal Loan
- Rs.30 lakh Personal Loan
- Rs.25 lakh Personal Loan
- Rs.20 lakh Personal Loan
- Rs.15 lakh Personal Loan
- Rs.10 lakh Personal Loan
- Rs.5 lakh Personal Loan
- Rs.4 lakh Personal Loan
- Rs.3 lakh Personal Loan
- Rs.2 lakh Personal Loan
- Rs.1 lakh Personal Loan
- Rs.50,000 Personal Loan