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With a fixed amount of income, it sometimes becomes a little hectic to manage expenses, liabilities, and savings. But unfavorable scenarios create urgent monetary requirements which demand instant funding of lump-sum amounts. In such a scenario, banks offer personal loans to salaried employees to deal with urgent monetary requirements.


A salaried personal loan is a type of personal loan offered by banks to salaried individuals working in private or public organizations. The salaried personal loan offers additional funding during crises like medical emergencies, consolidated debt repayment etc.

Key Highlights of Salaried Personal Loan

  • No Collateral: There is no collateral policy in salaried personal loans.

  • No Guarantor: For salaried personal loans, the applicant does not have to get someone as his/her guarantor.

  • No Restriction: The amount funded by the bank via salaried personal loans can be used by the applicant according to their convenience and monetary requirement. The applicant also has the option of not disclosing the primary reason for the loan.

  • Small-time Period: Salaried personal loans generally have a minimum tenure of 3 months to a maximum tenure of 5 years.

Eligibility Criteria for Personal Loan for Salaried Employees

There are some parameters that an applicant must qualify for a personal loan for salaried employees:

  • The applicant should be an Indian Citizen.

  • The applicant applying for a salaried personal loan should age between 21-60 years of age.

  • The applicant must be a salaried employee with a minimum income of Rs. 10,000/- per month.

  • To ensure that stability, the applicant must be a salaried employee in an organization for over a year.

  • The applicant should have a good CIBIL score. In case, the applicant is a defaulter in any of the banks, they will not be considered eligible for a salaried personal loan.

Documents Required for Personal Loan for Salaried Employees

The documents will require these basic documents for a salaried personal loan in every institution for loan application:

  • Passport-size Photographs: The salaried personal loan application will require a minimum of 2 passport-size photographs for the application.

  • Identity Proof: The salaried personal loan application will require Government-issued Identity proof like PAN Card, Aadhar Card, etc.

  • Address Proof: Utility bills, Passport, Rent agreement, etc act as residential proof. The residential proof should mention the address of the applicant residing place for the past few years.

  • Income Proof: The applicant applying for a salaried personal loan will have to submit a salary slip along with a salary certificate and Form 16 as proof of the mentioned income of the applicant.

  • CIBIL Score Proof: The applicant will also have to submit their bank statements for a salaried personal loan application.

Benefits of Salaried Personal Loans

Loan Value

You can get a loan of up to Rs. 25 Lakhs. This feature makes the salaried personal loan a helpful source for all urgent expenditures and investments.


The documentation process of the salaried personal loan is simple and easy. You will have to submit only important documents including address proof, identity proof, income proof, employment proof, and a passport-size photograph.

Submission of Documents

The applicant can easily upload their documents online on the application portal of the financial institution.


The total cost of borrowing is highly influenced by the hidden additional charges. In order to find the best salaried personal loan, read all the terms and conditions properly before applying for the loan.

Processing Time

The approval of a loan is generally very quick especially in the case of short-term loans. The amount is reflected in your salary account within a few hours of approval. Always remember to enter correct and authentic details in the form to avoid any issues. If any information filled in the form is found to be wrong during the verification process it may delay the process or even lead to rejection of the application.

Interest Charged by Different Banks on Salaried Personal Loans

Here is a list of the top 5 banks that offer low-interest rates on salaried personal loans

Bank Name

Interest Rate

Processing fee

Loan Amount

Punjab National Bank

8.35 % - 14.50%

1% of the applied amount

Up to Rs. 10 Lakhs

Union Bank of India

8.90% - 12%

0.5% of the applied amount

Up to Rs. 15 Lakhs

Indian Bank

9.05% - 13.65%

1% of the applied amount

Up to Rs. 15 Lakhs



1% of the applied amount

Up to Rs. 20 Lakhs


10.5% - 19%

2.5% of the applied amount

Up to Rs. 25 Lakhs


Can I get a personal loan on my salary account?

Yes, you can apply for a salaried personal loan on your salary account. You will have to clear the eligibility criteria and submit the necessary documents for the salaried personal loan application.

Can I use my salaried personal loan for home renovation?

The salaried personal loan amount can be used by the applicant at its own discretion and for multi-purposes like paying consolidated debts, weddings, healthcare, etc.

Which is the best-fixed interest rate or floating interest rate for salaried personal loans?

The fixed interest rate remains constant throughout the tenure of your salaried personal loan, however, the floating interest rate depends on the market scenarios. While floating interest rates are generally lower than the fixed interest rate, it involves the risk of paying more interest according to market fluctuations.

Which bank is best for personal loans for salaried employees?

Various banks offer personal loans for salaried employees under various schemes. It is advisable to read the conditions of every institution and then apply for a salaried personal loan. There are various factors like interest rate charged, tenure, loan amount, processing fee, etc that should be taken into consideration and choose the optimal option.

How much loan will I get if my salary is between Rs 15,000 – Rs. 20,000?

The loan amount approved and sanctioned by banks for salaried personal loans depends on several aspects – like the credit score, repayment capacity of the applicant, bank statements, etc. Generally, banks approve the loan amount up to 30 times the applicant’s income. But eventually, it is the bank's discretion varying from application to application.

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