Managing sudden financial needs can be stressful, especially when savings fall short. Whether it’s a medical emergency, marriage expense, or home repair, personal loans offer a helpful way out, especially for salaried employees. If you earn a regular income, banks and NBFCs (Non-Banking Financial Companies) prefer you as a customer due to stable income and low risk. With digital platforms, applying for a loan is now faster and more convenient than ever.
Let’s break down everything you need to know about personal loans for salaried individuals—right from benefits and eligibility to interest rates and how to apply.
Why Personal Loans Are a Popular Choice for Salaried Employees
✅ Quick Access to Cash
A personal loan gives instant funds for any financial requirement. Most salaried professionals with a good credit score can get pre-approved offers. In many cases, funds reach your account within a few hours of approval.
✅ No Need to Touch Savings
Instead of using your fixed deposits or emergency funds, a personal loan helps maintain your savings while solving your urgent cash needs.
✅ Flexible Tenure and Amount
Most banks allow you to choose a loan repayment term between 12 to 72 months. Loan amounts range from Rs. 50,000 to Rs. 50 lakh, depending on your income and credit profile.
✅ Competitive Interest Rates
If you have a good credit history, you can get lower interest rates compared to credit cards. Salaried professionals with long employment histories and strong repayment records often get better offers.
✅ Simple Process and Less Paperwork
Today, applying for a loan doesn’t require standing in queues. You can apply online with minimal documentation, especially if your salary is credited in the same bank.
Who Can Apply for a Personal Loan in India?
To get approved easily, you must meet the basic eligibility criteria. Here’s what most lenders look for:
- Age: 21 to 60 years
- Employment: Must be a full-time salaried employee in a private or government company
- Monthly Income: Rs. 25,000 or more (varies with bank and city)
- Credit Score: Ideally 750 or above
- Citizenship: Indian citizen
Required Documents for Personal Loan Application
Most digital lenders accept scanned copies or digital uploads. Here’s a checklist of documents:
Personal Identification
- Aadhaar Card / PAN Card / Voter ID / Passport (any one)
Address Proof
- Aadhaar / Passport / Rent Agreement / Utility Bill
Income Proof
- Last 3 salary slips
- Last 6 months’ bank statement (where salary is credited)
- Form 16 or latest Income Tax Return (ITR)
Photograph
- Recent passport-size photo
If you’re applying through an app or bank portal, you might not need to submit physical copies unless specifically requested.
How to Apply for a Personal Loan Online
Applying is now easier than ever. Here’s a step-by-step process:
- Visit the lender’s website or app
Choose a bank, NBFC, or platform like Moneycontrol offering loan partnerships. - Fill in basic details
Enter your name, PAN, income, employer, and mobile number. - Complete digital KYC
Use Aadhaar and PAN to finish verification online. - Check your eligibility and EMI
Based on your inputs, the lender will show eligible loan amounts and monthly EMI. - Get approval and receive funds
Once approved, the loan amount is credited directly to your bank account.
Loan Amount, Interest Rates, and Fees
Here’s what to expect in terms of cost and loan flexibility:
| Feature | Range |
| Loan Amount | Rs. 50,000 to Rs. 50,00,000 |
| Interest Rate | 10% to 24% per annum |
| Processing Fee | 2% to 3% of loan amount |
| Tenure | 3 months to 6 years (72 months) |
| Prepayment Charges | Some lenders allow free prepayment after 6–12 months |
Tips to Improve Chances of Loan Approval
Maintain a good credit score
- Pay your credit card and loan EMIs on time. A score above 750 improves the chances of getting a low interest rate.
Avoid multiple loan applications
- Each application lowers your credit score slightly. Compare offers first, then apply for one loan.
Choose the right tenure
- Short tenures mean higher EMI but less interest. Longer tenures make EMI easier but cost more overall.
Check offers from your salary bank
- Banks usually give pre-approved offers to their account holders with regular salary credits.
Final Advice Before You Apply
While personal loans are a great way to handle urgent expenses, don’t borrow more than you can repay. Always calculate your EMI and check the total interest outflow. Also, read the loan agreement carefully before accepting the offer.
Source: Moneycontrol
