Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

How Salaried Employees Can Get a Personal Loan in India?

Published on Feb 13, 2020Updated on Jan 23, 2024

How Salaried Employees Can Get a Personal Loan in India?

Personal Loan feels like a boon when you have a large expense to make, regardless of whether it was a planned expense or an unplanned emergency. They are essentially unsecured loans given by lenders to individuals. People take personal loans for expenses such as medical emergencies, vacations, to clear pending debt, home renovations or other any other such expenses. Personal loans offer a great deal of flexibility and are available to all borrowers.

However, not all financial organizations offer personal loans to every customer. This is where NBFCs come into the picture, with customized products for different kinds of customers. For instance, at SMFG India Credit, we offer low salary personal loan, to people who have a lower than average monthly income.

Similarly, Personal loan is available for any salaried person and requires minimal documentation. Personal loans are also available for self-employed individuals and business persons. These loans typically have a maturity period of 12 months to 60 months or 1 year to 5 years. The terms of the loan vary according to the profile and requirement of the borrower.

How can Salaried Applicants apply for a SMFG India Credit Personal Loan?

We welcome applicants to walk into our branches or call our customer care on all working days to discuss any personal loan requirements. Our representatives will be able to give you a quick assessment and help you submit your application on the same day (as long as you meet the eligibility criteria and have the requisite documentation).

However, we encourage you to also explore our online personal loan application options. With an easy to use interface and quick processing, our instant personal loans online are a quick, convenient way to help you get the funds you need from the convenience of your home. You can

  1. Apply online on our website here
  2. Download our SMFG India Credit InstaLoan app (available for Android) on your mobile phone
  3. Apply online with the help of Dia, our user-friendly chatbot (available on www.smfgindiacredit.com)

Requirements to Get a Personal Loan for Salaried Employees

Getting a personal loan for a salaried employee is as simple as applying online with the requisite documentation. All that you need to submit are the following:

  • Salary statements for the last 3 months or Form 16 – to prove that your monthly earnings are higher than the minimum salary required for a personal loan. Additionally, if you are employed in a reputed company – there is a higher chance of your application getting approved.
  • Proof of address – which can be in the form of electricity bills, telephone bill, passport, rental agreement or other such,
  • Proof of identity – which can be your PAN card, AADHAAR card, voter card, passport, driving license, etc.,
  • Last 3 months bank statements, and
  • Self-attested passport-sized photos.
Must Read: How to Choose a Personal Loan?

At SMFG India Credit, the minimum salary for obtaining a personal loan is as low as ₹20,000 (INR 25,000 for Mumbai and Delhi residents) per month. Various lenders have varying policies about the maximum amount of loan that they can grant. While some may be willing to give a loan for up to 30% of the monthly salary, others may provide a loan for as high as twice your annual salary. A low salary personal loan will have a higher rate of interest or the terms of the loan may be stricter. That said, monthly salary is not the only factor used to determine eligibility for a personal loan for a salaried employee.

Determinants of Terms of Personal Loan for Salaried Employees

The maximum amount of loan you are eligible for, the rate of interest charged, and the other terms of the loan depend on the following factors:

  • Your monthly salary – meeting the minimum salary for personal loan requirements is a must.
  • Years of service at your current organization
  • Other outstanding loans if any – This will help evaluate your repaying capacity after deducting any existing EMIs and loan commitments you may have
  • Age – personal loans to salaried employees are generally given to applicants between21 years and 60 years of age.
  • Your credit rating or CIBIL score – You should try and maintain your CIBIL score above 700 to get favorable rates and terms.
Must Read: How to Calculate Personal Loan EMI?

Merits and Caution of Personal Loans for Salaried Employees

Personal loans, when used carefully, are a great way to tide over large expenses in life. While applying for any loan, you should always keep in mind your repayment capability. Taking a loan is a big decision and should be approached with clarity and caution. Repaying your loan in time and in full establishes you as a good contender for extending loans and increases your credit rating. Failure to do so will lower your credit rating and mark you as a risky borrower, which will make it difficult for you to get any more loans. Therefore, you are advised to consider all available options and carefully take decisions while availing a personal loan.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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