How To Apply For Personal Loan For Salaried Employees In India?

Personal Finance

Personal loans are unsecured loans that can be availed of by both salaried and self-employed professionals and non-professionals. Banks and NBFCs usually prefer salaried employees to give out loans. This is primarily because salaried employees have a fixed source of income. Lenders consider applicants with a fixed source of income less risky than others. So, if you’re looking for detailed information on a personal loan for salaried, this blog might just interest you!

What is a Personal Loan for Salaried Individuals?

A personal loan is an unsecured loan (loan that doesn’t require collateral) that could help you during a financial emergency. Be it medical expenses, buying appliances or a new phone, house repair, or marriage or travel expenses, you could use a personal loan for anything.

Banks offer personal loans at a certain rate of interest. You are required to repay the loan in EMIs or Equated Monthly Instalments. Since, salaried individuals have a steady source of income, banks often roll out loan offers (reduced interest rates, higher loan amount, etc) dedicated to the salaried class. However, the final amount and interest rate are decided based on various parameters, including your credit score. Anyone with a good credit score has a better chance of personal loan approval.

So, what are personal loan interest rates for salaried individuals?

Personal Loan for Salaried Interest Rates 2022

 Refer to the table below for the latest personal loan interest rates for salaried:

Disclaimer: Note that this table is for educational purposes only and the final rate offered is solely at the concerned lender’s discretion. Navi doesn’t take responsibility for any interest rate changes that may occur in the due course of time.

Advantages of Personal Loan for Salaried

Here are some of the benefits of availing personal loan for salaried:

No Collateral: There is no requirement of any collateral or mortgage if you opt for a personal loan since it is an unsecured loan.

Easy Eligibility Criteria: Banks prefer salaried customers. Indian citizens working in a private company or Government organisation could get a loan without much difficulty.

Pay in Easy EMIs: Personal loan for salaried tenure varies between 6 months and 7 years. You can choose loan tenure at your convenience.

EMI Calculator: There are dedicated personal loan EMI calculators to help you with EMI calculation.

Instant Disbursal: If you need a quick loan with money in your bank account within minutes, you could use apps like Navi. From the application of the loan to its disbursal, everything can be completed easily in a short span of time.

Eligibility Criteria for a Personal Loan for Salaried Employees

Most personal loans have an eligibility requirement that needs to be adhered to, which may vary from lender to lender. Some of the most common requirements for a personal loan that other lenders might have are:

Also read: 11 Guaranteed Ways to Improve Your Credit Score

Documents Required for Personal Loan for Salaried Employees:

Most lenders need certain documents to process your personal loan, which comprises of:

• Proof of identity and age of the applicant – Aadhaar card, PAN card, passport, etc.
• Proof of income, i.e. 3 months’ salary slips or 6 months’ bank statements
• Proof of address – Aadhaar card, passport, driving licence or voter ID card
• A coloured photograph of the loan applicant

How to Apply for a Personal Loan for Salaried with Navi

Follow these steps to apply for a personal loan with Navi:

1. Download the Navi app from Google PlayStore or App Store
2. Enter your mobile number to get OTP
3. Fill in your basic details – Name, DOB, PAN, Employment Type, Profession and Total Monthly Income
4. Check loan offer
5. Select loan amount and tenure
6. Link your bank account
7. Get funds instantly transferred to your bank account
   

Tips for Salaried Employees to Take Loans During the Pandemic:

This pandemic has had a major impact on the entire population of India. With job cuts, downsizing and pay cuts, a financial crisis has seeped into many households even with stable salary incomes. This is where a personal loan can be effectively used to your advantage as this is one of the simplest credit instruments in the market. With the following tips for effectively using a personal loan, you can surely make the most of it:

Tip # 1:

Choose an appropriate tenure of loan repayment. Do not go overboard to quickly repay your loan even if that hurts your financial stability. Take time to repay but ensure you repay it back within the specified timelines.

Tip #2:

Do not skip your payments. Your credit score does get affected negatively by your payments bouncing. Schedule your repayment a day after your salary credit. That way, the EMI would surely be paid on time.

Tip #3:

Choose a loan quantum based on your requirement and repayment capability. Remember that EMI needs to be paid regularly and from your disposable income after your necessary expenses are done.

Also read: How to Plan Loan Repayment on Time: Different loan repayment options

How to Calculate EMI for Personal Loan for Salaried?

You can use a personal loan EMI calculator to check your monthly repayment obligations. These EMI calculators are extremely easy to use. Just enter the loan amount, interest rate, and tenure. Once done, you can check the EMI amount.

Let’s understand this with an example.

Let’s say you have taken a loan of Rs.1 lakh for a tenure of 5 years. The interest rate charged is 9.9%. Upon calculation, your EMI would be Rs.2,531.

Here’s a detailed breakdown of your repayment details (yearly)

This table is for illustrative purposes only.

Different Purposes for Availing a Loan for Salaried

As mentioned earlier, a personal loan for salaried is multipurpose. Here are some of the most popular reasons for opting for a personal loan:

• Debt consolidation or repayment of high paying loans or credit card balances
• Medical emergencies of self or family
• Expenses for your wedding or that of a family member
• Vacation expenses in India or abroad
• Fund your higher or professional education for your spouse or child
• Buy your dream car
• Renovate or redesign your home
• Expenses for a consumer durable or the latest gadget

There could be multiple other reasons for the requirement of funds for a salaried employee which could be easily met by opting for a personal loan from Navi.

Final Word

Lenders usually prefer salaried applicants when approving a personal loan. However, before applying, make sure that you have checked your credit score, evaluated your repayment capacity and compared multiple lenders. It’s always important to make an informed decision before signing up for a personal loan.

In case you’re looking for an instant loan, you can try Navi Personal Loan. Download the Navi app and get loans up to Rs.20 lakh at competitive interest rates starting from 9.9% p.a. with flexible EMI options.

FAQs on Personal Loan for Salaried

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Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Get personal loans up to ₹20 lakh starting at 9.9% p.a. Install the Navi app now!

Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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