Personal loans have become one of the most useful sources of finance for people over the last few years. If you want to meet your planned and unplanned expenses, a personal loan can be a reliable source of funds. Lenders approve personal loans based on various factors. Approval for salaried employees may be easier since they have a regular source of income. Due to the income stability, they may pay EMIs with ease and without defaulting. The biggest advantage for salaried employees is that due to their fixed income, they can easily prove to the lenders that they are capable of repaying the loan.  Even among salaried employees, a person having longer service and job stability has more chances to get a loan sanctioned. Let us now understand some of the main factors that personal loan providers consider

Principal Factors That influence Personal Loan Eligibility for Salaried Employees:

The following are some of the principal factors that influence personal loan eligibility 

Annual Income:

This is the most important parameter for evaluating your personal loan eligibility since it helps determine whether you can repay your loan or not.

Place of Living:

The place where you live - the city or the locality could determine your standard of living. Also whether your place is rented or owned could help the provider understand your financial obligations and thus decide your eligibility for a personal loan. 

Debt-to-Income Ratio:

Your existing debt-to-income ratio is an indicator of your financial commitments and well-being. If your debt-to-income ratio is too high, the lender may think about lending you a loan, since you may not be able to repay your personal loan. 


The company you work for has an important role to play in terms of your eligibility to procure a personal loan. Since the reputation of the company you work for is considered while computing your credit score, it can have an impact on your eligibility for a personal loan as well.

Credit Score:

The credit score is computed by Transunion CIBIL™ . It indicates your financial discipline and how well you have managed your finance in the past. It is a summary of your credit history and contains all the information about your loan repayments, EMI defaults, etc.  It will help the loan provider assess your eligibility for an instant personal loan. 

How to Improve your Eligibility To Avail A Personal Loan?

Before you apply for a personal loan, it is important to improve on the factors that influence your loan eligibility.

The following are the ways in which you can improve your personal loan eligibility. 

Maintain a steady income

It is extremely important that you have a steady income in order to get a personal loan easily and instantly. Try not to switch jobs too often as this may reflect badly on your capability to repay your loan and hurt your eligibility for a personal loan. 

Improve Your Credit Score

A credit score of 750 and above is considered very good and can make your personal loan approval easy and instant. Monitor your credit reports regularly. This way, you will know what  transactions have pulled down your credit score. Also, if there are any discrepancies, you can immediately address them with the respective credit bureau and get them corrected. This way, you can maintain a steady credit score. Before you apply for a personal loan, check your credit score and take steps to improve it. 

Additional Read: How to improve your credit score?

Reduce The Burden Of Your Debts

If you have any unpaid amounts towards any of your loans, make sure to repay those as quickly as possible. This will greatly lower your debt-to-income ratio and make it easier for you to obtain a loan. 

Do Not Apply For Multiple Loans

Lenders look into your credit history when your eligibility is evaluated. If you have applied for too many loans within a short period of time, you are seen as hungry for credit. Credit hungry behavior does not indicate a strong financial position. Do not apply for a loan more than once in a time period of 6 months.  


Amidst inflation and the rise in the cost of living, personal loans come in very handy for people. You might need a personal loan for various reasons, like a much-awaited international holiday, an unexpected medical emergency, or a dream wedding. Salaried employees do have an edge over self-employed people in procuring personal loans due to the stability in their income. But, they must know about the factors that influence personal loan eligibility and improve them. You can apply for a personal loan through CreditMantri 


FAQS of Why Are Salaried Employees More Likely To Qualify For Instant Personal Loans? 

1:Can a salaried employee get a personal loan easily?

Most top lenders in the country offer personal loans to salaried individuals since they have a regular source of income. Salaried people can avail of personal loans up to Rs. 40 lakh at interest rates beginning from 8.90% per annum. The duration of repayment on these loans ranges between 12 months and 72 months.

2:What are the advantages of personal loans?

Personal loans are:

  • Flexible and versatile: You don't have to specify the end usage when you take a personal loan. For example, if you take a car loan, you can use it only to purchase a vehicle. However, when you take a personal loan, you can use it for anything. 
  • No collateral required
  • Adequate loan amount: Individuals can ask for an amount which satisfies a particular requirement. The actual amount varies from case to case although there is no fixed limit. Lenders are willing to pay the money which is mentioned, subject to certain conditions.
  • Quick processing
  • Simple documentation
  • Flexible loan terms 

3:Which are some of the leading personal loan providers in India? 

Some of the leading personal loan providers are State Bank of India, HDFC Bank, ICICI Bank, Bajaj Finserv Lending, Standard Chartered, and Axis Bank. 

4:Are personal loans variable or fixed?

Most personal loans carry fixed rates. This means that your rate and monthly payments called installments stay the same for the period of the loan. Fixed-rate loans are good if you want uniform payments each month and if you are concerned about increasing rates on long-tenure loans.