Personal Loan for Salaried Employees
Most banks and NBFCs offer personal loans for salaried individuals in India as they have a regular and steady income source. Salaried people can avail of personal loans online for up to Rs. 50 lakhs at attractive interest rates starting from 10.25%. The borrowed amount can be reaped in a tenure of 12 months and 72 months.
Personal Loan for Salaried Different Banks
Below is the table for key details of personal loans for salaried employees by top lenders in India:
| Name of Lender | Rate of Interest (per annum) | Processing Fee | Maximum Loan Limit |
|---|---|---|---|
| Canara Bank | 11.25% - 13.90% | 0.50% + GST | Rs. 3 Lakhs |
| SBI | 9.60% - 15.65% | Nil till 31st January 2022 | Rs. 20 Lakhs |
| ICICI Bank | 10.50% - 19% | Up to 2. 50% + GST | Rs. 25 Lakhs |
| HDFC Bank | 10.50% - 21% | Up to 2.50% | Rs. 40 Lakhs |
| Bajaj Finserv | 13% onwards | Up to 4% + GST | Rs. 25 Lakhs |
| IDFC FIRST Bank | 10.49% onwards | Up to 3.5% | Rs. 40 Lakhs |
| Tata Capital | 10.99% onwards | Up to 2.75% + GST | Rs. 25 Lakhs |
| Yes Bank | 10.99% onwards | Up to 2.50% + GST | Rs. 40 Lakhs |
| Axis Bank | 10.49% - 24% | Up to 2% + GST | Rs. 15 Lakhs |
Canara Bank Personal Loan for Salaried
- Interest Rates: 11.25% to 13.90% p.a.
- Loan Amount: Up to Rs. 3 Lakhs
- Repayment Tenure: 1 to 5 years
- Processing Fee: 0.50% of the loan amount + GST
- Prepayment Charges: Nil
SBI Bank Personal Loan for Salaried
- Interest Rates: 9.60% to 15.65% p.a.
- Loan Amount: Rs. 24,000 to Rs. 20 Lakhs
- Repayment Tenure: 1 to 6 years
- Processing Fee: Waived until 31st January 2022
- Prepayment Charges: 3% of principal outstanding
ICICI Bank Personal Loan for Salaried
- Interest Rates: 10.50% to 19% p.a.
- Loan Amount: Rs. 50,000 to Rs. 25 Lakhs
- Repayment Tenure: 1 to 6 years
- Processing Fee: Up to 2.50% of loan amount + GST
- Prepayment Charges: 5% on principal outstanding + GST
HDFC Bank Personal Loan for Salaried
- Interest Rates: 10.50% to 21% p.a.
- Loan Amount: Rs. 50,000 to Rs. 40 Lakhs
- Repayment Tenure: 1 to 5 years
- Processing Fee: Up to 3.5% of the loan amount
- Prepayment Charges: 2% to 4% of principal outstanding
Bajaj Finserv Bank Personal Loan for Salaried
- Interest Rates: 13% p.a. onwards
- Loan Amount: Up to Rs. 25 Lakhs
- Repayment Tenure: 1 to 5 years
- Processing Fee: Up to 4% of the loan amount + taxes
- Prepayment Charges: 4% of principal outstanding + taxes
IDFC FIRST Bank Personal Loan for Salaried
- Interest Rates: 10.49% p.a. onwards
- Loan Amount: Up to Rs. 40 Lakhs
- Repayment Tenure: 1 to 5 years
- Processing Fee: Up to 3.5% of the loan amount
- Prepayment Charges: 5% of principal outstanding
Tata Capital Bank Personal Loan for Salaried
- Interest Rates: 10.99% onwards
- Loan Amount: Rs. 75,000 to Rs. 25 Lakhs
- Repayment Tenure: 1 to 6 years
- Processing Fee: Up to 2.75% of the loan amount + GST
- Prepayment Charges: 4.5% of principal outstanding + GST
Yes Bank Bank Personal Loan for Salaried
- Interest Rates: 10.99% p.a. onwards
- Loan Amount: Rs. 1 Lakh to Rs. 40 Lakhs
- Repayment Tenure: 1 to 5 years
- Processing Fee: Up to 2.50% of the loan amount + taxes
- Prepayment Charges: Up to 4% of principal outstanding
Axis Bank Bank Personal Loan for Salaried
- Interest Rates: 1.49% to 24% p.a.
- Loan Amount: Rs. 50,000 to Rs. 15 Lakhs
- Repayment Tenure: 1 to 5 years
- Processing Fee: 1.5% to 2% of the loan amount + GST
- Prepayment Charges: 2% to 5% of principal outstanding
Features of Personal Loan for Salaried Employees
- Loans against salary can be used by salaried individuals for travel, debt consolidation, medical emergencies, education, weddings, gadget or appliance purchases, and other legitimate purposes.
- Lenders consider the applicant’s monthly income and employer when determining their eligibility.
- These loans do not require any security or collateral.
- An overdraft facility for salaried individuals is also available under a personal loan.
- Many lenders also offer a balance transfer option on personal loans.
- Salaried employees get personal loans at lower interest rates than self-employed professionals and business owners.
- In regards to the loan amount under a personal loan maximum limit is Rs. 50 Lakhs.
- The rate of interest on these loans is generally fixed and the due is reduced with every installment paid because interest is levied on the principal outstanding. This method of interest calculation is called the reducing rate method.
- These loans typically come with a tenure of 12 months to 60 months.
- These loans do not require too many documents.
- Many lenders offer instant loans for salaried online through mobile-based apps.
- Existing customers of the lending bank can also avail of a pre-approved facility with zero documents.
Personal Loan for Salaried Employees - Document Required
The documents mentioned below need to be submitted for personal loans for salaried employees. The documentation requirement may vary from lender to lender but is mostly the same for most lenders.
- Application form: Duly filled and signed personal loan application form along with the recent passport-sized photographs.
- Identity proof: A copy of the passport, aadhar card, voter ID card, or driving license.
- Residence proof: A copy of a ration card, recent utility bills (electricity, gas, or telephone bills), rental agreement, or passport.
- Bank statements: Last 3 months’ bank statements or bank passbook of last 6 months.
- Salary slips: Latest salary slips or current dated salary certificate along with the latest Form 16.
Personal Loan for Low-Salary Employees
When availing a private loan for salaried, a low salary can be a serious concern for salaried individuals as it is a key factor in determining their eligibility. Applicants having a low salary might feel that they are not eligible for a personal loan with any lending institution. However, this is not entirely true. Some banks and other financial institutions offer personal loans to salaried individuals with a monthly income of as low as Rs. 10,000. However, the loan amount to be sanctioned, the rate of interest, and the repayment tenure will be in line with the salary of these individuals. Also, the loan features will vary from one borrower to another, depending on their job profile and income, and the lending institution with which the applicant applies for private finance for salaried.
FAQs
A salaried person can get a personal loan online from MyMoneyMantra or the lending bank’s website or offline by visiting the bank. They have to submit the application form along with the required documents to apply for a loan for a salaried person. Once the verification is done and the request is approved by the lender, the loan amount is disbursed online directly to the borrower’s bank account.
- Monthly salary: The minimum salary for a personal loan is Rs. 25,000 in most lending institutions. The monthly income requirement may change according to the borrower’s residence city and the lender’s policy. For instance, the minimum salary for personal loans in HDFC Bank is Rs. 25,000 per month, but it is Rs. 30,000 for ICICI Bank.
- Age: The applicant must be aged at least 21 years old when applying for the loan and should not be above 60 years of age when the loan matures.
- CIBIL score: The minimum CIBIL score required for a personal loan by most lenders is 750 or above.
- Repayment capacity: The borrower’s capability to pay back the borrowed loan amount plays a major role in deciding their eligibility. Repayment capacity for personal loans for salaried persons depends on the applicant’s income, existing financial liabilities (running loans and credit cards), and the nature of their job (contractual, permanent, seasonal, etc.).
- Profession: Salaried individuals of government, semi-government, private firms, and MNCs are eligible to avail of this loan. Many banks also offer personal loans for unsalaried or self-employed persons.
You must have a good CIBIL score to avail an instant personal loan for salaried with any bank. If you have been a defaulter in your past or do not have a good credit report, you may not be considered eligible for a personal loan. In such cases, you can consider applying for a loan with NBFCs and peer to peer (P2P) lending institutions. However, these alternatives tend to have higher interest rate than banks.