Can I Get a Loan on Salary?

When you are in a job, you are dependent on your salary for every expense. Every month, there are some bills and expenses like groceries, travel, and utility bills (phone, electricity, and water). In addition, you save a bit for unforeseen situations. Still, at times, there are some situations that demand instant money like medical emergencies, home repairs and other such scenarios. Here, either you can use your savings or you can take a loan. But then, the question arises – can I get a loan on salary? Well, the answer is ‘Yes’. Many NBFCs and lending institutions give loans to salaried individuals. Let us check out the details.

Types of Loans Available on Salary

There are different types of loans that you as a salaried person can get. Check out the types and advantages of loans:

Secured Loans

Secured loans require you to provide collateral such as property, gold, or fixed deposits against the loan. The lender can seize this asset in the event of default by the borrower.

Key Features:

• The amount of loan is generally high since it will be based on the value of the object you offer as security.
• The rate of interest is low since the lender has lower risk.
• You have more time to repay the loan, which is usually over 5 years.
• Typical ones include home loans, car loans, and gold loans.
• In case you don't pay on time, the lender can seize your asset.

Unsecured Loans

Unsecured loans do not require security or collateral. Loan approval is based on the creditworthiness, income, and repayment ability of the applicant.

Key Features:

• The amount of the loan is less and is based on your income and credit score.
• The interest rate is high since the lender is taking a greater risk.
• You repay the loan in a shorter period, typically up to 3 years.
•  Examples include Personal Loans and credit cards.

Personal Loan

Hero FinCorp Personal Loans are a classic case of unsecured loans. It can give you Rs 50,000 to 5 lakh at a flexible repayment period of 12 to 36 months. The interest rates are competitive too. The most interesting thing is that you can use it for any purpose like home improvement, medical treatment, holidays, studies, or even consolidating debts. The sanction is instant when applied online and the disbursal is quick.

Eligibility Criteria 

For availing a loan on salary, you need to fulfil some requirements. Below are Hero FinCorp’s requirements:
• Citizenship: The candidate should be an Indian citizen.
• Age: You should be between 21 and 58 years of age.
• Experience: You should have six months of experience in the current company.
• Minimum Salary: You must have a minimum monthly salary of Rs 15,000.

Also Read: How Much Loan Can I Get On 15000 Salary?

Required Documents 

When applying for a loan on salary, you will need the following documents:

Also Read: What Amount Of Funds Can I Borrow Based On My Salary?

How Much Loan Amount is Available for My Salary?

The most frequently asked question by a salaried individual is, "How much loan can I avail on my salary?" Typically, your eligibility for a loan is determined by a variety of factors, such as your monthly income, outstanding loans and credit score.

How is Eligibility Calculated?

Typically, lenders permit your overall monthly EMIs (including this new loan) to be a maximum of 45–60% of your monthly salary, depending on your general financial condition.

Here’s An Example

• Salary: Rs 30,000 per month
• Maximum EMI Allowed (at 60%): Rs 18,000 per month
• Maximum EMI Allowed (at 45%): Rs 13,500 per month

The loan amount you will actually get will vary based on how much EMI you can afford, the interest rate, and the tenure you opt for.

For example - At Hero FinCorp, you can get a loan up to Rs 5 Lakh with a Rs 30,000 salary, as long as your EMI is within the permissible bracket and other conditions.

Other Important Criteria

• Credit Score: Your credit score is a major consideration. The better the score, the greater the chance of approval and the more likely you will be able to obtain favourable interest rates. You may still apply with a lesser score if you are able to prove strong repayment capability or consistent income.
• Stable Employment: You ought to have a stable job.

Application Process

It is easy and fast to apply for a Hero FinCorp Personal Loan:

1. Download the Hero FinCorp app from the Google Play Store.
2. Fill out the application and provide the KYC details and income proof.
3. Get instant approval and quick loan disbursal into your account.

Why Choose Hero FinCorp?

• Quick, online process with less paperwork
• Clear terms and no extra charges
• Adjustable repayment terms
  
  Note: The actual loan amount, interest rate, and EMI are based on your credit history, income, and Hero FinCorp's internal guidelines. Check your precise eligibility and EMI using the Hero FinCorp app or website.

How to Apply for a Loan on Salary?

You may apply for a Personal Loan on your salary either through the website or by going to a Hero FinCorp branch.

Online:
Visit the Hero FinCorp website or download the Personal Loan app. Press Apply Now', provide your mobile number, and confirm it with OTP. Select the loan amount, fill out your details, and submit the application.

Offline:
Go to your local Hero FinCorp branch. Explain your loan requirement, fill out the form, and submit the papers. If all is well, you will be approved promptly.

Hero FinCorp Personal Loans are an easy means for salaried individuals to deal with emergencies such as medical expenses or house repairs. You receive instant approval with less paperwork and no requirement to offer anything as security.

Key Benefits of a Personal Loan for Salaried

The salaried persons can avail various benefits through a Personal Loan. Some of the most prominent advantages are as follows:

• Minimal documentation: Personal loan verification online is paperless. Just provide the KYC details and income proof for instant loan approval.
• Fixed-rate of interest: Personal loans are typically provided at a fixed rate of interest. The interest rate is constant for the entire duration.
• Flexibility to choose the tenure: The tenure is up to 3 years. You are free to decide the tenure based on the EMI calculator tool. Longer tenure of a loan, lower EMI and vice versa.
• Tax benefit: You can't receive tax benefits on Personal Loans.
• Immediate Approval: Financial institutions offer online loan facility with instant loan apps that accelerate the application, approval and disbursal process.
• Flexible Usage: You can utilise a Personal Loan for any purpose. It is one of the fastest loan approval products when you require funds urgently. Salaried people reap the most benefit from the Personal Loan since they quite easily fulfil the necessary eligibility criteria for Personal Loans.
• Improves Credit Score: If a Personal Loan is repaid in the specified tenure, the credit history of a salaried individual gets better. Not only does a timely repayment of EMIs enhance the credit score, but it also increases borrower's chances to obtain loans in the future.

Conclusion

Using your salary to take a Personal Loan is a wise decision towards addressing emergencies or significant expenses. Hero FinCorp provides instant loans with simple criteria and minimal documentation. For maintenance at home, hospital bills, or any other important need, get funds without disturbing your budget. Apply now and stay in charge of your money.

Frequently Asked Questions

1. Can I get a loan if I have a low salary?

Definitely, you can get a loan even on a low salary. If you have a minimum salary of Rs 15,000 per month, you can get a loan from Hero FinCorp online.

2. How does my job stability affect my loan application?

Before giving the loan, the lender wants to check the repayment criteria of an applicant. So, lenders consider those applicants who have at least six months of experience in their current job.

3. What documents are typically required for a salary-based loan?

The document requirement for a loan based on salary is minimal. For example – you only need to provide your KYC details and proof of salary when you apply online with Hero FinCorp.

4. Can I negotiate the interest rate on a salary-based loan?

Yes, you can negotiate the interest rates on a salary-based loan if you have a good credit score and high income.

5. What should I do if my loan application is rejected?

In the case your loan application is rejected, you should look for the reasons behind it. If it is due to eligibility requirements or credit score, then you should improve them first and apply again.

6. What is the minimum credit score required to get Personal Loans for a Rs 24,000 salary?

The credit score requirement can vary from lender to lender. Usually, loan providers prefer a credit score of 750 or more for approving a Personal Loan with a 24000 salary.

7. Can I get a Personal Loan for 30000 Salary?

Yes, you can definitely get a Personal Loan with a salary of Rs 30,000 per month. Make sure you meet the eligibility requirements of the loan by checking with the loan provider.

8. How much Personal Loan can I get on 15,000 salary?

The amount of Personal Loan you can get on 15000 Salary will depend on your credit score, age, debt-to-income (DTI) ratio and other factors.

9. How much salary is required for a Rs 2.5 Lakh Personal Loan?

The minimum salary requirement for Rs 2.5 lakh Personal Loan at Hero FinCorp is Rs 15,000 per month. However, there are other eligibility requirements that you should fulfil to get approved.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.