A Quick Guide on Personal Loan for Salaried Employees

You have just received an unexpected expense, or you are eyeing an exciting opportunity, but your savings aren’t quite enough to cover it. As a salaried employee, you might be wondering if there’s a financial solution that can help bridge the gap. Enter personal loans—a versatile and accessible option for many. From understanding what a personal loan is to navigating the application process, this guide will help you make informed financial decisions and make the most out of your borrowing options.

It is a loan provided to you as an individual by a bank or financial institution without asking you for any collateral or security in exchange. That’s why it is called an unsecured loan. You can use the funds from a Personal Loan for any legal purpose. However, companies and organisations are not eligible for Personal Loans. 

The six noted benefits of a personal loan for salaried employees are:

Flexibility of Purpose

Personal loans are versatile and can be used for various needs. Whether funding a family wedding, renovating your home, consolidating previous debts, covering children’s education costs, buying a new mobile phone, going on a holiday, or handling a medical emergency, a personal loan provides the financial flexibility to meet diverse expenses without restriction.

Instant Funds

Personal loans offer quick access to funds, making them ideal for urgent financial needs. Pre-approved HDFC Bank customers can receive funds in as little as 10 seconds, while even non-HDFC Bank customers can obtain the loan amount within 4 hours. This rapid disbursement ensures you have the necessary money when you need it the most.

No Documentation

If you are a pre-approved customer, you can skip the paperwork, making the loan process faster and more convenient. The lack of documentation requirements speeds up approval and disbursement, providing a seamless borrowing experience.

No Assets Needed

These loans are unsecured, eliminating the need to pledge any valuable belongings as collateral. This reduces the risk for borrowers, as there’s no need to worry about losing valuable property in case of loan default, making it accessible even for those without assets.

Flexible Tenures

Personal loans offer flexible payback options ranging from 12-60 months, letting you choose a tenure that suits your financial situation. With affordable EMIs starting at just ₹2,149 per lakh, managing your loan repayment becomes easier, ensuring it doesn’t strain your monthly budget.

Competitive Interest Rates

These loans come with competitive interest rates, making borrowing more affordable. Lower interest rates reduce the overall cost of the loan, making it a cost-effective solution for addressing various financial needs.

That will depend on your salary, the organisation you work for, and the years you have spent in service. It will also depend on whether you have other debts besides your creditworthiness. Use the HDFC Bank Personal Loan eligibility calculator to know more. HDFC Bank gives loans up to ₹40 lakh.

You can apply for a personal loan through various convenient methods. Start by visiting the HDFC Bank website or using NetBanking to complete an online application. Alternatively, you can apply through an HDFC Bank ATM or visit your nearest bank branch in person. Whichever method you choose, you'll need to fill out a loan application form and present the required documents, such as validation of income, identity, and address.

To apply for a personal loan, you must provide several documents to verify your identity, address, and income. Here's a detailed personal loan documents list:

• Proof of Identity: Furnish a copy of a government-issued ID with your name and photograph. Acceptable documents include your Aadhaar card, PAN card, passport, voter ID, or driver's licence.
  
• Proof of Address: Provide a document showing your current residential address. This could be your Aadhaar card, utility bills (like electricity, water, or gas bills), a rental agreement, passport, or a bank passbook with your current address.
  
• Proof of Date of Birth: Attach a document that details your birth date, such as your Aadhaar card, passport, birth certificate, or driver's licence.
  
• Proof of Income: You must provide recent financial statements to show your capacity to repay the loan. Include copies of your bank statements or a passbook updated with recent transactions, typically for the past six months.
  
• Salary Slips and Employment Details: If you are a salaried employee, you must attach your latest salary slips (usually the last three months) to confirm your monthly income. Also, include a copy of your company appointment letter or employment contract to validate your employment status.
  
• Income Tax Returns (ITR): Submit copies of your most recent income tax returns. This provides a comprehensive overview of your annual income and financial stability. Typically, lenders require ITRs for the last two years.

If you are a salaried employee with an urgent financial need, the Personal Loan will be your solution! Go ahead and apply for a Personal Loan now! #Startdoing! 

Read more on the Personal Loan for Self – Employed here.

* Terms & conditions apply. Personal Loan disbursal at the sole discretion of HDFC Bank Ltd. HDFC Bank frequently comes up with offers for existing customers. Check with the bank for the latest offers and schemes for salaried employees.