The right customer
- Salaried employees of established companies with 1+ year in the job
- Scores of 720 and above for the better rates
- Customers consolidating expensive card balances
- Steer away from: very recent job changers, customers with several open personal loans, and anyone with recent missed payments
What lenders look for
- Banks prefer salaried customers at listed or well-known employers and price by employer category.
- NBFCs accept more self-employed and mid-score profiles, at higher rates.
- Fintech lenders decide fastest and suit smaller amounts and younger borrowers.
Documents to collect
- PAN and Aadhaar
- 3 months' salary slips
- 3–6 months' salary account statements
- Current address proof if different from Aadhaar
Common rejection reasons
- Employer not on the lender's approved list
- Too many enquiries in the last three months
- Existing EMIs leave too little room
- Salary credited in cash or irregularly
- Mismatch between declared and credited salary
A worked example
Illustrative case
Customer: salaried, ₹65,000 a month, score 745, no existing loans, needs ₹5 lakh over 4 years.
A private bank is the first choice; an NBFC is the fallback if the employer category is low.
Illustrative payout at 2 % of ₹5 lakh: ₹10,000.