When unpredicted expenses come up, it puts a lot of burden on your shoulders to manage finances and meet your needs simultaneously. At these times, personal loan proves to be of great help as it smoothens the cash flow and acts as a financial backup. But the level of difficulty in availing a personal loan is higher when compared to other loan products. At the same time, personal loan applications are processed faster than other loans, and in most cases it takes less than a week to get it sanctioned. But with banks setting up stringent procedures for loan sanctioning, applying for a personal loan becomes difficult for employees working in companies not listed with the bank.
Most public sector banks deny loans to employees working in non-listed companies. However some banks such as HDFC and ICICI have come up with loan products designed specifically for such applicants. But it is to be noted that there are certain terms and conditions applicable to personal loan offers for employees of non-listed companies, which may include higher interest rates, lesser loan amount, or a shorter loan tenure.
The best way to avail a loan if your company is not listed with banks is by approaching NBFCs for the same. The loan amount offered by banks is comparatively less and it is subject to certain conditions. For example, HDFC offers loans to employees of an unlisted company if it is headquartered outside India, with a few domestic branches in operation. Similarly Standard Chartered bank, ICICI, Kotak, etc., provide funds to employees of non-listed companies, but the minimum salary requirement for most of these lenders is high when compared to NBFCs. NBFCs on the other hand evaluate repayment capacity based on your monthly income and also your relationship with the firm. NBFCs too have their set of rules to determine the eligibility criteria, which includes background verification, credit history, and length of employment in the present company.
Your loan eligibility also depends on your place of residence. For example, if you live in a Tier 1 city and earn the same income as that of someone living in a Tier 3 city, then your loan amount is likely to be lesser than the amount offered to him. Generally, NBFCs verify your career track record and job stability, if not necessarily the employing organization. Given below are the eligibility requirements to avail a personal loan from leading NBFCs, Bajaj Finserv and Fullerton India:
| Name of the city/cities | Minimum salary (per month) |
| Bangalore, Chennai, Kolkata, Mumbai, Delhi, Chennai, Hyderabad, Ghaziabad, Gurgaon, Pune, Surat, Noida, Faridabad, Thane | Rs.40,000 and above |
| Chandigarh, Cochin, Jaipur, and Nagpur | Rs.35,000 and above |
| All other places | Rs.30,000 |
Documents required to be submitted
| Age | 21 years to 58 years |
| Minimum Income | Rs.12,500 and above |
| Years in employment | 3 years |
| Years in current residence | 1 year |
Documents required to be submitted
CIBIL score is a financial tool that determines your creditworthiness. According to a survey, more than 80% of loans are approved for individuals who maintain a steady score of above 750. For achieving a health CIBIL score, one must have an understanding of its core areas. Banks and NBFCs depend on CIBIL report to gauge the potential risks associated with each and every loan they offer. Therefore, it is advisable that you maintain a decent credit report in case you are employed in small to medium range companies which are not listed with the bank most of the times.
For more insights on personal loans for employees of non-listed firms, visit the concerned NBFC and ask for offers and discounts. Just because you are employed in a non-listed firm does not imply that you should opt for any of the easily available loans. Always keep in mind that personal loan negotiations are based on your monthly income and the credibility of information you provide at the time of application. Also, make sure that you do a comparative study of the available financing options before approaching the lender. Â
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