Personal Loan for Salaried Employees 2022

Personal loans are designed for individuals who are faced with unplanned expenses. Personal loans are unsecured loans and issued on the basis of income and credit score of an applicant. Salaried employees and self-employed individuals can get a personal loan to meet a host of financial needs for various reasons such as:

• Medical emergency
• Dream vacation
• Child’s wedding
• Home renovation
• Big-ticket purchase
• Debt consolidation
• Higher education

Salaried employees have fixed income and the salary is deposited on a fixed date. However, an emergency can happen with any individuals at any time and salaried employees are no exception. At times, salaried employees face a cash crunch to meet unexpected requirements for which they have not allocated funds in advance. In such situations, a personal loan can come to their rescue. 

Almost all banks and NBFCs (Non-Banking Financial Companies) offer a Best personal loan to salaried individuals to help them meet financial requirements for several purposes including home repair, debt consolidation, vacations, wedding and a lot more.

• Minimal documentation and quick approval: Personal loan application needs less documentation as compared to other types of loans. Since the documentation is short and simple, the loan application is approved instantly if you qualify for the loan. 
• Flexible repayment tenure: A personal loan can be availed for a flexible tenure generally ranging from 12 months to 60 months.    
• Competitive interest rates: Now lenders are offering attractive interest rates on a personal loan for eligible customers. Moreover, the interest is charged on a reducing balance i.e. interest will be calculated on the outstanding loan balance every month.
• Multipurpose loan: You can use a personal loan for any purpose as long as it is legal. Personal loans can be availed for multiple financial requirements from big-ticket purchase to foreign vacation. 
• Unsecured loan: Personal loans are issued based on the applicant’s repayment capacity and credit score. Hence, you don’t need to submit any asset as collateral to get a personal loan. 

Personal loan amount, Best rate of interest applicable and repayment tenure depend on a variety of factors, such as work experience, job profile, age, salary, CIBIL score and existing debts, if any. 

While eligibility criteria may vary from lender to lender, you need to meet the following basic criteria to get a personal loan from banks. 

• Age: The minimum age of the applicant while applying for a personal loan should be 21 years and should not be more than 60 years at the time of termination of the loan. 
• Salary: Authorized lenders set a minimum monthly salary parameter to offer a personal loan. Generally, the minimum salary required starts from Rs. 10,000, which may be higher in metro cities. 
• CIBIL Score: Lending institutions take your CIBIL score into consideration while determining your eligibility for a personal loan. It shows how responsible and punctual you have been in dealing with credit in the past. Banks find out how risky you are based on your CIBIL score. If you have a track record of paying back credit on time, you would have a good credit score. Generally, a credit score of 750 or above is considered helpful in getting a personal loan approved.
• Debt to income ratio: Debt to income ratio shows you repayment capacity and how much personal loan you can get based on your earnings, expenditures and existing financial liabilities. It is the percentage of your gross monthly income that is spent to pay your monthly debts payments. Generally, your debt to income ratio should not be more 40% to get a personal loan. 

Here is a checklist of basic documents required to get a personal loan: 

• Filled loan application form along with self-attested passport size photographs of the applicant 
• Identity proof: Passport / Driving license / Voters ID / PAN card /Aadhaar card /Letter issued by Unique Identification Authority of India
• Address proof: Leave & License Agreement/ Ration card /Utility bill (not more than 3 months old) / Bank statement/ Latest ITR - provided the document has the present address mentioned in the loan application form
• Age proof: Birth certificate/ School leaving certificate/ PAN card/ Passport
• Income proof: Salary slips for the last 3 months along with salary certificate and latest Form 16
• Bank statement: Bank statement showing salary being credited for the last 3 months 

Salaried employees can get a personal loan from Rs. 50,000 up to Rs. 25 lakh based on their requirement and eligibility from top lenders. Rate of interest applicable on a personal loan ranges from 10.50% to 26% based on the applicant’s eligibility. The following table shows the range of personal loan interest rates offered by top lenders. 

Special Note:- Rates are subject to periodic changes. Personal loan interest rates and other fees/charges are subject to regular reviews and can vary from customer to customer - depending upon a number of factors ranging from credit score to existing loans, amount of savings, company with which you are currently employed, number of years of relationship with the bank or NBFC etc.