How Your Personal Loan Eligibility Is Affected by Your Employer?

Let’s say you have a lot of existing debt – credit cards, student loans, consumer durable loans, etc. Availing personal loan online is one the easiest ways to consolidate debt that gives you more control over your finances and savings. 

Generally, it is not a requirement to pledge a collateral when seeking a personal loan. Understandably, there is a percentage of risk involved when lenders sanction personal loan requests as they do not have any security to fall back on in case the borrower defaults. While the applicant can carry out an individual eligibility check using the personal loan calculator, the lender also needs to carry out background checks on the applicant profile involving a number of parameters such as income, credit score, work history, and the applicant’s employer’s profile too. 

How Do Lenders Categorize Employers?

The majority of the salaried class are employed in small and medium scale enterprises. Hence, the lenders put a lot of emphasis on the employer profile that plays a significant role in determining the applicant’s personal loan eligibility.

Most lenders like SMFG India Credit have a readymade list of companies which are segregated into listed and unlisted categories. Other key criteria that aid in this classification of enterprises include factors such as:

• The number of years that the business has been in operation
• The total number of employees on their payroll

Profit making enterprises that have a reputation, are consistent and stable with long years in operation as top-tier employers are considered by lenders to be lower placed on the risk ladder. Those employed in such organisations tend to enjoy a higher amount of personal loan approvals, lower interest rates and long repayment tenures. 

Must Read: Complete Guide About SMFG India Credit Personal Loan

How Your Personal Loan Eligibility Is Affected by Your Employer?

Despite having a good credit score, your employer is a key component that can make or break your personal loan application. Remember, that the lender in this instance is not seeking security and hence does not have access to any personal assets that can be auctioned off to recuperate losses if the individual eventually defaults on the loan.

Job security of the loan applicant is of paramount importance along with the income of the prospective borrower. This determines whether the applicant has the financial wherewithal and a steady income flow to repay the loan fully within the predefined loan repayment tenure. Of course, the security of employment is ascertained by the category of employer where top-tier organizations will exhibit low employee churn rates.

Contrary to this, employees working in low capital investment firms find it difficult to meet with the lender’s personal loan eligibility requirements. On many occasions, salaries are not disbursed on time which makes the risk that much higher for lenders to approve personal loan requests from employees working for unlisted companies. Other scenarios such as the company declaring bankruptcy, possibly encountering financial crisis leaving employees without a job in which case the personal loan in all possibly may convert into a ‘Non Performing Asset’ will leave the lender in murky waters. 

Dealing with the prospect of low job security leads most lenders to disapprove personal loan online requests from employees of small and financially unstable companies. To put in a nutshell, such applications are not deemed creditworthy. In the event that a personal loan is indeed sanctioned to employees of such unlisted organizations, the applicant in all probability will be paying higher personal loan interest rates as compared to an employee who is on a lower salary but working in a listed company.

How Can Employees of Unlisted Enterprises Secure a Personal Loan?

With assured continuity of employment with a high net-worthy enterprise, employees have a higher chance of their personal loan applications getting quick approvals from lenders. That does not solve the problem for the majority of the salaried population who do not work in such organizations.

SMFG India Credit comes to the rescue for employees working in unlisted companies to help them secure personal loan online as their focal point is more on the applicant’s income and credit history rather than just concentrating on the employer profile.

How To Get a Personal Loan From SMFG India Credit?

Before you make your application to SMFG India Credit make sure that you have done the necessary research towards your eligibility requirements. At SMFG India Credit, you will need to meet the following basic personal loan eligibility criteria to make a formal application.

For Salaried Individuals:

• You should be a minimum of 24 years and a maximum age of 60 years
• You should be a resident of India
• You should be employed in a private limited company, partnership firm, MNC, Public limited company, Government or Public Sector Company
• Your minimum monthly income should be Rs. 25,001

For Self-Employed Individuals and non-professionals:

• You should be at least 24 years of age at the time of loan application
• You cannot be more than 60 years of age before the loan matures
• Your business organization should have been operational for a minimum of 3 years
• Your business organization should have declared profits for the last two consecutive years

Documents Required

Here is a list of required personal documents:

• Application form
• All your KYC documents including PAN Card, Identity Proof, and Address Proof

For Salaried Individuals:

• Employment or offer letter
• No salary slip required, bank statements submitted should display salary being credited
• Last 12 months bank statements 
• Latest Form 16

For Self-Employed Individuals and non-professionals:

• Last three years income tax returns
• Last 6 months bank statements
• Sales tax returns
• TDS / GST Certificate
• Company details

Also, remember to calculate your eligibility to avail the loan with the help of SMFG India Credit’s online personal loan calculator. 

Must Read: How to Apply for a Personal Loan Online- Step by Step Process

How To Apply?

Here is a quick guide to apply for a personal loan from SMFG India Credit:

1. Provide Preliminary Details

Enter your basic information such as mobile number, PAN, pincode, and employment status (salaried or self-employed).

2. Authenticate Your Contact Number

Verify your phone number with a 6-digit OTP.

3. Add Essential Information

Fill in more details like email address, date of birth, gender, annual household earnings. You will also need to verify your email ID.

4. Enter Employment Details

Insert details applicable to your employment if you are on a payroll.

5. Submit Bank Statements

To proceed, submit your bank statement via Net Banking, an Account Aggregator, or by uploading the document. Based on this, we will generate a loan offer (salaried individuals only).

6. Complete Identity Verification

Go through identity and residential verifications using recognised channels such as CKYC, Offline Aadhaar XML-based KYC, and DigiLocker. A selfie is necessary for completing identity verification.

7. Proceed With Bank Account Submission

Provide your bank information for verification by us.

8. Add Extra Details

Post-verification of the bank account, submit details such as the loan purpose and marital status in the ‘Additional Details’ section.

9. Set Up E-NACH for Re-payments

Select a re-payment method from debit cards and internet banking, after which you can complete the E-NACH setup.

10. Digitally Sign the Loan Agreement After a Review

Review carefully and provide a digital signature on the loan agreement, then verify with an OTP.

By following these easy steps, you edge closer to fulfilling your financial ambitions.

If you have any further questions with reference to personal loan fees, charges, etc., you may call SMFG India Credit’s customer service on toll-free number 1800 103 6001. Alternatively, email us on   for more information.