Starting the first job of the career and awaiting the very first salary is one of the most awaited moment in new employee’s life. But life is unpredictable and between the time new employee receives his/her first salary, the need for money can arise due to:

• Medical emergency
• Theft or loss
• Pay rent
• Debt repayment and others….

So how to arrange money in such situations? The answer is personal loan for new employee (assuming own saving is not available). However it is difficult to get personal loan for new employee mainly because of the following two reasons:

• Lenders ask for minimum 3 month pay slip, which is not possible for a fresher.
• No credit history (assuming fresher has not taken any credit earlier)

So how can new employee get personal loan?

There are following four ways for new employees to get personal loan as listed below:

(1) Lend money from friends/family member: Before new employee/fresher applies for personal loan; he/she should ask for money from friends/family member. But make sure to make repayment as soon as you receive the salary. Never delay in making repayment to anyone especially when near ones are involved. Money is the biggest reason for relationships to fail. In fact, to strengthen the relationship more, you can offer to pay small interest in return. This way lender would be happy to lend money.

Lending money from friends/relatives is very cost effective as typically interest is not charged.

(2) Loan from employer: This is one of the most cost effective and easiest option to get personal loan for new employee. Such individual can directly contact the HR of their company and ask whether interest free loan is offered by the company or not. Few such employers offering loan are Tata Capital Financial Services (for TCS employee), Infosys, Wipro and many others. Loan from employer are mostly interest free and even if there is a chargeable interest, the rate will be very low compared to unsecured personal loan.

(3) Loan against collateral: The next cost effective loan for new employee is loan against collateral, also called as secured loan. Fresher can keep collaterals such as fixed deposit, shares, mutual fund, and others and get loan against these securities.

Read these related articles: Personal loan against

• Personal loan against fixed deposit
• Personal loan against LIC policy

(4) Collateral free loan: This is also called as unsecured loan. There are many banks in India offering this loan but everyone asks for pay slip for minimum 3 months. But for freshers/new employee, ICICI bank offers exclusive personal loan:

• Fresher loan from ICICI Bank: Personal loan for new employee is exclusively offered by ICICI Bank. Loan amount is maximum Rs. 1,50,000. To get personal loan, new employee does not need to have provide any security. However since it is a unsecured loan, the interest rate is high and may not be feasible for someone with low income.

To get new employee personal loan from ICICI bank there are following four ways to apply:

1. Internet banking
2. iMobile app
3. Personal visit to the bank’s branch
4. SMS PL to 5676766

But remember that every lender and type of loan has eligibility criteria.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at nikeshmehta@allonmoney.com. You may also visit my LinkedIn profile.