Do I need to be employed by a specific type of company?
Accepted Answer ✓ Accepted
Lenders prefer certain employer categories for better rates and eligibility: Preferred categories - (1) Central/State Government employees and PSU companies (best rates), (2) Fortune 500 / MNCs / Listed companies (preferred rates), (3) Large private sector companies / Top corporates (standard rates), (4) Category A companies as per lender classification. Accepted but stricter - (5) Small-medium enterprises (SMEs), (6) Unlisted private limited companies, (7) Proprietorships/Partnerships. Generally not preferred - Startups (unless well-funded), Very small firms (<10 employees), Companies with poor financial health. Some NBFCs are more flexible than banks. Company type affects: Interest rate (0.5-2% variation), loan amount eligibility, processing time, documentation requirements.
Suggested Answers
While you can work for any registered company, lenders prefer government employees, PSU workers, and employees of large MNCs or listed companies. They often offer better interest rates and higher loan amounts to these categories due to job stability.
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