How Can the Workplace Impact Your Personal Loan?

Last Updated : Dec. 4, 2020, 6:57 p.m.

Lenders check several things before handing you a personal loan to meet your needs, of which your workplace is one. It not only helps lenders decide your personal loan eligibility but also the money you will pay over the loan term. Someone working in top companies will not only get the loan easily but also have attractive interest rates to lower their debt burden. Whereas people working in less reputed firms can get access to personal loans but at higher interest rates.

So, if you want organization-based segregation of personal loan offerings, we are here to show you the same. Let’s read and know such details.

How are Companies Segregated for Personal Loans?

Companies are segregated based on their operational efficiency and financial statements. Lenders categorize companies as –

• Super CAT A
• CAT A
• CAT B
• CAT D
• CAT GA/GR/RA
• CAT GB

While Super A, CAT A, CAT B and CAT D abbreviations are for private sector companies, CAT GA/GR/RA and CAT GB are for public sector enterprises. Bluechip enterprises such as Accenture, HCL Technologies, Infosys, Tata Consultancy Services, Tech Mahindra and some others are Super CAT A companies. Companies below these stalwarts are ranked in CAT A to CAT D. Of the public sector enterprises, there can be Maharatna, Navratna and Miniratna companies such as ONGC, IOL, etc.

How Does Your Company Dictate Your Personal Loan Offer?

Depending on your company rank and income, you could get the loan with a certain multiplier. The higher the rank of your company, the higher the multiplier and the greater the loan disbursal. All the top lenders go about deciding the multiplier this way; however, the actual multiplier will vary. Here, we will show you the multiplier effect for HDFC and SMFG Personal Loans.

HDFC Personal Loan Multiplier Effect

The premier private lender HDFC Bank sets multipliers based on the monthly income and the company rank as follows –

How Does the SMFG Personal Loan Multiplier Work?

Similar to HDFC Bank, SMFG India Credit sets personal loan multipliers based on the net monthly of the applicant and the type of organization in which he/she works. Take a look at the SMFG Personal Loan Multiplier below.

Note – The numbers under different tenure options of both HDFC and SMFG Personal Loans represent the multipliers you will have. If there are existing debt obligations, the multiplier can reduce accordingly.

How Does the Personal Loan Interest Rate Fare According to Workplace?

We have said before that your organization also dictates the cost of your personal loan. This happens with the variation in personal loan interest rates for individuals working in different entities. Let’s check the interest rate offers for such employees.

Let’s Begin with HDFC Bank

HDFC Bank offers interest rates of as low as 10.75% per annum to employees working in top corporates. Even the processing fee remains low at INR 1,999-3,999. People who earn more than INR 50,000 can get an interest rate of 10.75-10.90%. Those earning more than INR 35,000 to upto INR 50,000 will need to pay the loan at 11-11.10%. And if employees of such companies earn less INR 35,000, the interest rate will go up slightly to 12.25-12.35%. Whereas, government employees can get HDFC Personal Loan Interest Rates of 11.49-17.35%.

If you are working in companies belonging to pharma, automobile and aviation industries, a reasonable interest rate of 14.75-14.85% will apply. However, only the top 38 pharma and 61 Automobile & Aviation employees are eligible for such offers. Further, these offers are subject to a net monthly income of more than INR 35,000.

How Does Kotak Mahindra Bank Personal Loan Serve Employees of Different Organizations?

Kotak Mahindra Bank also offers the lowest interest rate of 10.75% to eligible applicants. Super CAT A employees can bag a deal of 10.75%-12.49% per annum, whereas CAT A, CAT B and CAT D employees will need to pay at 11.15-13.75%, 12.49-16.25% and 16.25-17.99%, respectively. Government employees will need to pay at 11.75-15.75% per annum.

What Do You Need to Have to Grab the Lowest Rate from YES BANK?

YES BANK Personal Loan Interest Rate can come as low as 10.45% per annum if you work in a CAT A company with a minimum monthly salary of INR 75,000. Plus, the loan amount should exceed INR 7.50,000 to grab such an offer.

Similarly, other lenders set personal loan interest rates basis the rank of the company the employees work at.