What is The Personal Loans Criteria For Non-Listed Companies
August 28, 2023


In finance, personal loans have become an invaluable tool for individuals to bridge financial gaps, manage unexpected medical expenses, and finance a dream vacation or home renovation. The criteria for obtaining an Unsecured Personal Loan varies based on the eligibility criteria. One of these factors is whether the applicant’s employer is a listed or non-listed company. In this blog post, we delve into the personal loan criteria for non-listed companies, shedding light on the essentials that individuals need to know.

Difference between listed and non-listed companies

Listing involves trading a company’s shares on the Stock Exchange, enabling the public to purchase and sell the company’s stocks. Conversely, non-listed enterprises remain privately owned by their proprietors and are not featured on the stock exchange. Non-listed businesses follow directives established by the Central Government, while listed corporations operate under the guidelines outlined by the Securities and Exchange Board of India (SEBI).

The Significance of Employment Type

When applying for a personal loan, a vital determinant of an individual’s eligibility and loan terms is their employment type.  Individuals employed in non-listed companies encounter distinct considerations owing to the unique characteristics of such enterprises. Lenders often assess personal loan applications from employees of non-listed companies differently from those of listed companies. This distinction arises from the perceived differences in financial stability, transparency, and risk associated with these two types of employers.

Which Financers Provide a Personal Loan To an Employee of Non-Listed Companies?

The HDFC Bank Company category list is the reference point to check if an employer is included in the eligible list for providing a Personal Loan. Most Banks require employment with a company listed in the Company Category List to issue a Personal Loan; some leading Banks make an exception. The ICICI Bank, IDFC Bank and Leading NBFC are willing to fund employees of open market companies. The Bank will impose stricter Personal loan eligibility check guidelines to approve funding.

Personal Loan Criteria For Non-Listed Company Employees

  • Income and Stability

Income is a fundamental criterion for any Personal Loan Application, regardless of the employer’s listing status. For non-listed company employees, demonstrating a stable and sufficient income becomes crucial. Lenders want to ensure that borrowers have a reliable source of funds to meet their loan obligations. Typically, lenders require applicants to provide recent pay stubs, income tax returns, or other relevant financial documentation to verify their income.

  • Business Viability

Given the relatively limited access to financial information about non-listed companies, lenders may assess the viability and stability of the borrower’s employer. They might consider factors such as the company’s industry, financial history (if available), and reputation. This assessment helps lenders gauge the risk associated with providing a loan to an individual employed by a non-listed company.

  • Employment Tenure

The length of time a non-listed company has employed an individual can influence their loan application’s success. Longer employment tenure often indicates a certain level of job security and commitment to the employer, which can positively impact the borrower’s eligibility.

  • Collateral and Guarantors

In some cases, lenders may request collateral or a guarantor as a form of security, especially when dealing with borrowers from non-listed companies. Collateral could be in the form of valuable assets, such as property or investments, that the borrower pledges to the lender in case of loan default. On the other hand, Guarantors agree to repay the loan if the borrower cannot do so.

  • Credit History

While credit history is a standard factor in Personal Loan evaluations, it can carry more weight for employees of non-listed companies. Lenders might consider a strong credit history as a sign of the borrower’s responsible financial behaviour and ability to manage debt effectively.

  • Loan Amount and Interest Rates

Loan amounts and Personal Loan Interest Rates for employees of non-listed companies could be influenced by the perceived risk associated with the employer. Those working for non-listed companies might face slightly higher interest rates or lower loan amounts than their counterparts in listed companies. This is because lenders often factor in the potential challenges in assessing the financial stability of non-listed companies.

Tips for Enhancing Eligibility

While the Personal Loan Criteria for non-listed company employees might appear more stringent, there are several steps individuals can take to enhance their eligibility:

  • Maintain Good Credit

A solid credit history can be a significant advantage. Pay bills on time, manage existing debts responsibly and avoid excessive credit utilisation to keep your credit score in good shape.

  • Provide Comprehensive Documentation

To compensate for the lack of publicly available financial information about non-listed companies, be prepared to provide comprehensive documentation showcasing your income, financial stability and employment history.

  • Consider Collateral or Guarantors

Offering collateral or having a guarantor with a solid financial standing can alleviate lender concerns and improve your chances of loan approval.

  • Choose a Reputable Lender

Opt for a reputable lender with a history of catering to individuals from non-listed companies. Research their lending criteria and terms to find a good fit for your needs.

  • Strengthen Relationships with Banks

A long-standing relationship with a bank or financial institution can sometimes work in your favour. Banks familiar with your economic behaviour might be more willing to extend a personal loan.


Obtaining a Personal Loan while working for a non-listed company might present additional challenges due to the inherent differences in transparency and perceived risk. However, individuals can navigate the process by understanding lenders’ criteria and taking proactive steps to enhance their eligibility. Remember, each lender might have its unique evaluation process, so thorough research and preparation are vital to securing the Personal Loan you need.

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