Availing a personal loan is easy for a salaried borrowers since salaried borrowers are considered to have a regular source of income and most likely to have consistent growth in salary as the loan tenure passes. Hence, the banks and financial consider it to be more secure and risk free as compared to offering personal loans to self-employed, pensioners and non-incomers. Even in some of the lenders, only prefer salaried borrowers for personal loans.
|Salaried Person Loan at a glance|
|Age||18 Years to 60 Years|
|Minimum Income||Rs. 18,000 per month or above usually|
|Minimum Interest Rate||10.75% per annum|
|Maximum Tenure||72 Months|
|Total Work Experience||5 Years usually|
|Current Work Experience||Minimum 1 Year|
The minimum salary of a borrower is one of the crucial factors which have a direct impact on maximum loan amount he/she can get. In case of salaried personal loans, the banks and financial institutions mainly keep a check on your average monthly salary which help the lender understand whether your salary is growing or not. The minimum salary should be 12,000 to avail personal loan from a lender However, it may be higher depending upon the internal guidelines of the loan offering. According to the FOIR norms, a borrower can only avail funds on a minimum 45% of the current monthly salary to a maximum of 65% of the current salary. However, the lender can decide to go even higher if it finds the borrower enough credit-worthy.
The current age of a borrower at the time of loan application is also a deciding factor in defining how much loan one can get depending upon the maximum tenure. As per the basic criteria, a salaried borrower must be at least 18 years old at the of loan application, and must not be more than 58 to 60 years old at the time of loan maturity. The maximum age for eligibility depends upon the retirement age of the borrower as per the company/organization regulations. The maximum age is defined in a manner that the borrower must have paid the full loan amount including all the other services charges before he/she reaches the age of retirement since the regular income graph fluctuates at the time of retirement.
Banks and Financial institutions consider the work stability in a manner, that the longer a borrower is working with his/her current organization, the higher salary he/she might be withdrawing. Hence, almost all the banks and financial demands a certain period of total experience which tends to be minimum 3 years to 5 years depending upon lender’s criteria.
The total numbers of work experience of a salaried borrower represent that how much the borrower is stable in his current organization and if doing any progress or not. Which ultimately represents if the borrower is likely to have higher salary in future or not, and able to pay off the debt as per the tenure. A borrower with total work experience of 3 to 5 years represents that he/she is currently have a stable career and growing salary.
Moreover, the lenders also keep a check on whether the borrower is a permanent employee of the company/organization or a non-permanent employee. Depending upon it, your loan application might be approved easily or get rejected as per the internal lending guidelines of the bank/FI.
The category of the current company/organization of a salaried borrower also defines how much loan amount he/she can get from a certain lender or even would get a approval. The banks/FIs each year update their list of credit risk organisation who are either have been labeled as bankrupt or on the brink of it as announced by the government each year. If the borrower is employed with one such company/organization, the banks/FI tends to avoid such case due to the possibility of bankruptcy of the borrower, resulting in a threat to earnable salary of the borrower as well as the future growth.
The residential status of the a borrower also defines how banks and financial institutions would treat the case. If the borrower is living in a house and it’s title deed is in the name of the borrower, in the name of spouse in case the borrower is married, or in the name of parents if the borrower is unmarried yet, then banks/FIs consider it to be safe to lend the amount to the borrower, knowing that he/she either may be a co-owner in the property or the legal heir in the property documents.
However, in case the borrower is living in a rented house, be it alone, with parents or spouse, or with friends, the lender might be little cautious about lending the loan amount and may ask for some additional eligibility proof such as a third-party guarantee.
|Banks/FIs||Annual Interest Rates||Max Amount|
|SBI||10.75% - 15.15%||Rs. 15 Lacs|
|HDFC Bank||15.05% - 20.99%||Rs. 40 Lacs|
|Axis Bank||15.50% to 24%||Rs. 15 Lacs|
|Bajaj Finserv||12.99%||Rs. 25 Lacs|
|ICICI Bank||10.99% - 22%||Rs. 20 Lacs|
|YES Bank||10.75% - 15.90%||Rs. 25 Lacs|
|Citibank||10.99% - 17.99%||Rs. 30 Lacs|
|Kotak Mahindra Bank||10.99% to 24%||Rs. 15 Lacs|
|Indusind Bank||11.25% to 23%||Rs. 15 Lacs|
|Capital First||12% - 18%||Rs. 25 Lacs|
|Indiabulls||11.99% - 26%||Rs. 15 Lacs|
|Aditya Birla||14% - 26%||Rs. 15 Lacs|
|Home Credit||14%||Rs. 2 Lacs|
|IDBI Bank||12% - 13.50%||Rs. 10 Lacs|
|HSBC Bank||10.99% - 17.84%||Rs. 30 Lacs|
|Andhra Bank||11.70% - 13.20%||Rs. 20 Lacs|
|Indian Bank||10.65% - 11.25%||Rs. 1 Lac|
|Syndicate Bank||12.05% - 13.30%||Rs. 20 Lacs|
|Corporation Bank||12.95% - 13.95%||Rs. 3.5 Lacs|
|Federal Bank||11.49% - 14.49%||Rs. 10 Lacs|
|Bandhan Bank||14% - 18.75%||Rs. 5 Lacs|
|RBL Bank||15.5% - 23%||Rs. 20 Lacs|
|Bank of Baroda||11.60% - 16.60%||Rs. 10 Lacs|
|Fullerton India||11.99% - 23.99%||Rs. 20 Lacs|
|Standard Chartered Bank||10.99% - 18.65%||Rs. 30 Lacs|
|Tata Capital||11.49% - 19%||Rs. 15 Lacs|
|PNB||12% - 15%||Rs. 10 Lacs|
|Canara Bank||10.90% - 13.90%||Rs. 3 Lacs|
|Bank of India||12.05% - 14.05%||Rs. 5 Lacs|
Availing personal loans for low salaried is usually more complex than other, since many lenders tends to avoid them offering funds due to low FOIR ratio. However, very few lenders are offering personal loans to low salaried with different specifics as compared to regular salaried personal loans, such as high interest rates, and existing bank account etc.
|Bank||Min Salary||Interest Rates||Maximum Loan Amount|
|SBI||Rs. 5,000 per month to less than Rs. 15,000 per month
For Existing SBI Account holder only
|10.75% - 15.15% per annum||Rs. 15 Lacs|
|HDFC Bank||Rs. 12,000 per month
In Borrower living in Tier-II & III Cities
|15.05% - 20.99% per annum||Rs. 40 Lacs|
|PNB||Rs. 5,000 per month to less than Rs. 15,000 per month
For Existing SBI Account holder only
|12% - 15% per annum||Rs. 4 Lacs|
|Canara Bank||Rs. 10,000 per month||10.70% - 13.70% per annum||Rs. 3 Lacs|
|City Union Bank||Rs. 5,000 per month||16% per annum||Rs. 50,000|
When it comes to low salaried borrower, the government and cooperatives banks usually have low monthly salary criteria as compared to private lenders. However, the banks may ask you to provide an additional security or guarantor.
Above mentioned banks are the one who are usually popular for catering personal loans to low salaried borrowers. The criteria for the lowest eligible income varies from bank to bank such as in case of SBI, the borrower must be an existing SBI account holder to avail low salaried personal loan even if the monthly salary is as low as Rs. 5,000.
As for the HDFC Bank, it have low salary criteria in tier-II and tier-III cities where minimum monthly salary should be at least Rs. 12,000 per month. The tier-II cities includes Agra, Ajmer, Aligarh, Amravati, Amritsar, Asansol, Aurangabad, Bareilly, Belgaum, Bhavnagar, Bhiwandi, Bhopal, Bhubaneswar, Bikaner, Bokaro Steel City, Chandigarh, Coimbatore, Cuttack, Dehradun, Dhanbad, Durg-Bhilai Nagar, Durgapur, Erode, Faridabad, Firozabad, Ghaziabad, Gorakhpur, Gulbarga, Guntur, Gurgaon, Guwahati‚ Gwalior, Hubli-Dharwad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu, Jamnagar, Jamshedpur, Jhansi, Jodhpur, Kannur, Kanpur, Kakinada, Kochi, Kottayam, Kolhapur, Kollam, Kota, Kozhikode, Kurnool, Lucknow, Ludhiana, Madurai, Malappuram, Mathura, Goa, Mangalore, Meerut, Moradabad, Mysore, Nagpur, Nanded, Nashik, Nellore, Noida, Palakkad, Patna, Pondicherry, Prayagraj, Raipur, Rajkot, Rajahmundry, Ranchi, Rourkela, Salem, Sangli, Siliguri, Solapur, Srinagar, Sultanpur, Surat, Thiruvananthapuram, Thrissur, Tiruchirappalli, Tirunelveli, Tiruppur, Tiruvannamalai, Ujjain, Bijapur, Vadodara, Varanasi, Vasai-Virar City, Vijayawada, Visakhapatnam, Vellore, and Warangal. The other cities and small towns which doesn’t fall into Tier-I and II criteria are included in Tier-III cities.
As for the punjab national bank, the minimum monthly salary criteria is same for all the salaried applicants, but low salary applicants can only avail a maximum loan amount of Rs. 4 Lacs. The same is in case of Canara bank, where salary criteria remains the same for all salaried borrowers but the maximum loan amount is limited to Rs. 3 Lacs only.