A quick Personal Loan is a lifesaver when financial emergencies strike. Whether it is for a medical need, travel expense, or home repair, a Rs. 2 lakh Loan is a common choice for many individuals looking for quick funds. However, the speed at which a Loan is approved and disbursed can vary significantly based on your employment type. So, between salaried and self-employed individuals, who can get a Rs. 2 lakh Personal Loan faster?
Loan eligibility: salaried vs self-employed
Lenders evaluate age, income stability, credit score, employment history, and repayment capacity. These factors are assessed differently for salaried and self-employed applicants. Salaried individuals typically have a fixed monthly income and a predictable cash flow, which allows lenders to assess their repayment ability.
Lenders often consider salaried applicants low-risk borrowers who work with reputed companies for at least two years and earn a minimum salary of Rs. 20,000 to Rs. 25,000. Depending on the nature of their business or profession, self-employed individuals may have fluctuating income and irregular cash flow. The business must be three years old.
Lenders need to assess their stability, turnover, and income proof, which should match similar business standards.
Documentation and approval process
Documentation is another area where salaried individuals may have an edge. Salaried applicants are usually required to submit the following:
- Salary slips (last three to six months)
- Bank statements
- Identity and address proof
- Form 16 or income tax returns
For self-employed applicants, the documentation are more detailed:
- Income tax returns of the last two to three years
- Business registration proof
- Profit & loss statements
- GST returns or balance sheets
- Bank statements of the business account
- Business proof
The additional paperwork required for self-employed individuals often leads to extended verification and approval times.
Credit score matters
A good credit score (750 and above) is key in fast-tracking a Loan application, regardless of employment type. However, salaried applicants with a good credit history and consistent income may be perceived as more reliable, leading to faster approvals and disbursal. Self-employed individuals with excellent credit scores also get quick approvals, but only if they have clear and consistent income records.
Instant Personal Loans and pre-approved offers
Many NBFCs offer Instant Loans through online portals. Salaried individuals often receive pre-approved offers based on their salary account or previous credit behaviour, enabling them to get approved Rs. 2 lakh Loan within minutes. Self-employed individuals may receive such instant offers unless they have a strong relationship with the lender or meet specific eligibility criteria.
Final verdict: Who gets it faster?
In most cases, salaried individuals can get a Rs. 2 lakh Loan faster than self-employed applicants. Their fixed income, simpler documentation, and higher chances of receiving pre-approved offers give them a speed advantage. However, self-employed professionals with strong financial records, a decent score, and long-standing relationships with lenders also secure Loans quickly, especially from digital NBFCs that understand their unique profiles.
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