Personal Loan for Non-Listed Companies in India

When applying for a personal loan, banks and non-banking financial companies (NBFCs) consider various factors before approving your application. They typically assess your monthly income, credit score, and overall creditworthiness. Your employment status, including your employer's reputation, also plays a crucial role. Being employed by a well-known organisation can make the loan approval process smoother. However, the loan approval process might differ slightly if your employer is a non-listed company. If you've ever wondered how to secure a loan if your company is not listed, we have the answers for you.

A listed company trades shares publicly on the Stock Exchange, allowing the public to buy and sell its stocks. In contrast, non-listed companies are privately owned and do not trade their shares on the stock exchange. Non-listed companies adhere to guidelines set by the Central Government, whereas listed companies must comply with regulations established by the Securities and Exchange Board of India (SEBI).

If your company is not listed, the lender determines the loan amount and interest rate based on your credit score and monthly income. The lender also considers your employer’s reputation while approving your loan.

Generally, salaried individuals can easily acquire Personal Loans as they have a regular income source, provided they also have a good credit score. However, individuals working in reputed and listed companies are more likely to avail of preferential interest rates than those working in non-listed companies. Since public companies are well-known, lenders are more confident when granting loans to employees of such well-established companies.

Like any other loan, the eligibility criteria for Personal Loan for non-listed company employees remains more or less the same.

• You must be an Indian citizen.
• You must be employed with a private company.
• Your age should be between 23 and 58 years.

• Build Credit History: Aim for a credit score of 750 or higher to demonstrate your creditworthiness. This score indicates your reliability in repaying debts. Banks and non-banking financial companies (NBFCs) closely examine your credit score before approving your loan application.
  
• Multiple Income Sources: Listing all your income sources can significantly boost your chances of loan approval. Even if you work for a non-listed company, don’t hesitate to disclose additional income such as variable pay, annual bonuses, or investment returns. This can enhance your eligibility by showcasing your financial stability.
  
• Maintain Debt-to-income Ratio Low: Maintaining a low debt-to-income ratio is important. If your current debt obligations exceed 40% of your income, consider avoiding new loans until you can lower this ratio. A low debt-to-income ratio reassures lenders of your ability to manage additional debt responsibly.

Getting a personal loan from HDFC Bank is easy whether you work in listed or non-listed companies. You can apply for a Personal Loan here and enjoy an array of unique benefits such as loan disbursal within just 10 seconds (for selected pre-approved customers) directly into bank accounts, a paperless and hassle-free process and an upper limit of ₹40 lakh.

Looking for an alternative to a Personal Loan? Click here to read more!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.