Personal Loans

Personal Loan for Salaried Individuals

5 min read

A salaried employee is eligible to get personal loans in India. If you’re a salaried employee and looking for bank personal loans for Salaried Individuals in India, then check your eligibility at BankandFinance.com. We provide information on the best lending rate, tenure, fees and charges, banking companies and documents required. Salaried professionals should check with us for low interest on personal loans before applying for a loan in India.

Eligibility

Eligibility is a major criterion for salaried employees to get loans from India finance companies. First make sure to check your eligibility and then we will match you with the best lending interest rate in the market. Every loan lending company has different eligibility criteria for salaried individuals. The eligibility depends on the following:

  • Age of the Applicant
  • Residence Type
  • Income
  • Employment History

Age of the Applicant

Applicant age is a major criterion when one applies for bank personal loans for Salaried Individuals in India finance companies. If the applicant is less than 18 years of age, then the applicant is not eligible to apply for a finance loan in India. The age criterion varies from finance companies to other banking companies. The minimum age to be eligible is 21 years and the maximum age is 60 years.

Residence Type

If the applicant is residing in a different state due to his job, then the loan lenders will check to see if the residential address is as stated and number of years that the applicant has lived there. On the application form, applicants have to mention their current residence details to the loan lenders. If the applicant has resided at one address for more than 12 months, then the applicant should be eligible to get an India personal loan.

The residence type should be checked before applying for loan in India. Banks usually ask borrowers to select one of the different types of residences before they hand out bank personal loans for Salaried Individuals in India. They are:

  • Residing with family (Owned)
  • Residing with family in a rental house
  • Residing with friends (Owned)
  • Residing with friends in a rental house
  • Rented house by yourself
  • Rented staying with spouse
  • Paying Guest
  • Company provided home

These are the different types of residences in which the applicant could live in. Based on these factors the eligibility will be calculated. Use the various free tools to calculate the lending rate and the monthly installments that will need to be paid every month.

Income

The income of an applicant is important to get bank personal loans for Salaried Individuals. Bankers will offer loans to applicants who have a regular source of income, which should be more than Rs. 12,000/- per month. If the applicants income is less than Rs. 12,000/- the loan lenders will not sanction a loan in India.

There are a few banks and financial companies in India who offers loan in India if the income is less than Rs. 12,000/-. Suffice it to say that if a borrower meets the Rs.12,000/- or higher income threshold, better the chances of getting a loan.

So if you are earning above Rs. 12,000/- you should be eligible for HDFC personal loans. If the income is greater than 15,000 you have a higher chance of getting a loan in India with any one of the banks in India. ICICI bank offers loans if the applicant earns Rs, 20,000/- as the monthly income. A borrower will be helping himself if he checks around to see what the best lending rate is, and which bank offers it. If one is eligible based on the criteria set by the bank, then applying for bank personal loans for Salaried Individuals in India is that much easier. Use the loans calculator to calculate monthly installments and lending rate which will need to be paid.

Employment History

Employment history is another factor which is looked at to be eligible for getting bank personal loans for Salaried Individuals in India. It is one of the most important factors in the loan approval process. If a borrower has been employed for at least 2 years at the present company, then they should be eligible to get a loan in India. There are a few people who may not survive in the same company for even a year due to several reasons. People should keep this fact in mind before they decide to go job hopping. If one has had a job for at least 2 years, then they are available for HDFC personal loans, ICICI, AXIS, SBI and others. The lending rate which is offered by the bank depends on their CIBIL score.

Documents Required for Personal Loan for Salaried Professional:

After checking eligibility, borrowers are asked to submit paper work to the bank based on internal requirements. Generally, personal loans are be sanctioned after submitting and verifying Age Proof, Income Proof, Residence Proof, and ID Proof documents.

Age proof can be:

  • Voter ID
  • Driving License
  • Passport
  • Birth Certificate
  • PAN Card
  • School Leaving Certificate
  • 10th class Mark list

Residence Proof can be:

  • Rental Agreement
  • Electricity Bill
  • Water Bill
  • Telephone Bill
  • Mobile Bill
  • Ration Card
  • Passport
  • Sales Tax
  • Driving License
  • Passport

ID Proof can be:

  • Voter ID
  • Driving License
  • Passport

Income Proof can be:

  • Last 6 months Bank Statements
  • Last 3 months Pay slips
  • Form 16
  • Last 2 years Income Tax Returns

Employment Certificates can be:

  • Offer letter from the current company
  • Relieving letter from the previous company
  • Experience letters

Other documents that may be collected would mostly include HR Mail ID, Photograph, Signature Proof, Passport sized photograph, and Loan Application Form.

Banks can ask for any documents listed above as per their requirements in the process of getting bank personal loans for Salaried Individuals. Most banks will require almost the same paperwork across the board. If any other documents are required, it is up to the applicant to double check and to provide the documents so that they can get an India personal loan. While it may make sense to choose a bank that provide the best and cheap lending rate. Check whether there are any offers, discounts, and schemes available with the bank and also any concessions available for the lending rate. Check out the other articles before applying for Home Loans, Car Loans and Two wheeler Loans.