Commuting and working for long hours symbolise the never-say-die spirit of salaried professionals across India. To ensure their spirit remains high all the time, banks listen to their instant cash needs with attractive personal loan offers. These needs are so relevant in today’s era of emerging needs. Buying everything on savings is not possible for most. So, the focus shifts to a personal loan for salaried professionals.
But how does the offer shape up for salaried, such as the interest rate they have to pay the loan at, the documents they need to submit, the eligibility criteria they must meet, and, above all, how quickly they can access it? Let’s find out!
Overview of Personal Loans for Salaried
A personal loan is a gateway to fulfilling every financial need. Be it the cash you need for the big-bang wedding ceremony, travel dreams, post-retirement life, or even a medical emergency. Nowadays, people apply for a personal loan online to buy even consumer durables such as washing machines, air conditioners, refrigerators and even smartphones.
Don’t go by words alone, go by the stats too! The RBI’s sectoral data on bank credit pegged personal loan growth at 14.4% to reach INR 55.3 lakh crore in September 2024.
The Maximum Personal Loan for Salaried
| Banks | Maximum Loan Amount Available (In INR) |
| State Bank of India (SBI) | 35 Lakh |
| HDFC Bank | 40 Lakh |
| ICICI Bank | 50 Lakh |
| Axis Bank | 40 Lakh |
| Kotak Mahindra Bank | 35 Lakh |
| YES Bank | 50 Lakh |
| IndusInd Bank | 50 Lakh |
| Bank of Baroda | 10 Lakh |
So, What Do You Need to Get a Personal Loan?
You need a strong credit history showing spotless credit repayments, and of course, a credit score of more than 725. The net monthly income should be above INR 25,000. However, the exact income criteria will depend on the personal loan amount you apply for. Usually, lenders expect the EMI to constitute not beyond 30-45% of your net monthly income. If you already have a loan or credit card running in your name, lenders would want the proportion to reduce further so that they can be assured of smooth personal loan repayments.
Besides, you must have a minimum work experience of two-three years. Your current job must be for a minimum of one year.
The Interest Rate on a Personal Loan for Salaried
Salaried can get a personal loan at interest rates ranging from 12-25% per annum. Most lenders offer personal loans on reducing balance and flat rate basis.
Within the reducing balance system, there are broadly monthly and annual rests on which the personal loan EMI is calculated. With a monthly reducing balance system, the principal and interest component of the EMI is adjusted based on the outstanding balance left after each monthly instalment. Whereas with an annual reducing balance system, banks and NBFCs adjust the principal and interest portion after each year.
This way, the monthly reducing balance feature leads to reduced interest payments when opting for an annual reducing balance system.
In contrast to the reducing balance system, flat personal loan rates lead to much higher interest payments by the borrowers.
Personal Loan Interest Rates of Top Banks
| Banks | Interest Rate (In p.a.) |
| State Bank of India (SBI) | 11.45%-14.60% |
| HDFC Bank | 10.85%-24.00% |
| ICICI Bank | 10.85%-16.65% |
| Axis Bank | 11.10%-22% |
| Kotak Mahindra Bank | 10.99%-16.99% |
| YES Bank | 11.25%-21% |
| IndusInd Bank | Starts from 10.49% |
| Bank of Baroda | 11.20%-18.75% |
Documents Required for a Personal Loan
Salaried would get a personal loan based on successful submission of documents. The documents are required by the lenders to verify your identity, address, income, etc.
Identity Proof – PAN Card/Aadhaar Card/Voter ID/Driving Licence/Passport/Birth Certificate
Address Proof – Aadhaar Card/Voter ID/Driving Licence/Passport/Utility Bills
Income Proof – Salary Slips and Bank Statement for the Last Three Months
How Quickly Can Salaried Get a Personal Loan?
If everything goes right, salaried people can get a personal loan within 24-72 hours. In the case of a pre-approved personal loan, the disbursal is instant the moment you give your consent to the loan offer.
Summing Up
A personal loan is a gateway to fulfilling dreams and needs. It’s about being aware of the eligibility criteria so that you avoid unpleasant application rejections by the lender. Other important considerations include shopping for the best personal loan interest rates and submitting the required documents.
