Personal Loan Offered by Pakistani Banks – How it differs for Salaried Persons and Self Employed

personal loans pakistan

You may have urgent financial needs or have plans that require financing. A personal loan is a flexible option for both a salaried individual and someone who is self-employed. This kind of loan can solve a short-term problem or help to provide some security in the future.


Appling for a personal loan does require individuals to meet specific criteria. This will help to determine your eligibility as well as the interest rate that will be offered according to your financial circumstances. This relates to income, credit history and employment history and a number of other criteria. All of these can differ between Pakistan Banks and so, it is worth running a comparison. The rate offered by Standard Chartered Bank could be different to the rate offered by Allied Bank Pakistan. However, things can differ between those who are salaried and those who work for themselves or businessmen. So, what factors play a part when applying for a personal loan?


Your Income

Anyone who owns their own business will understand the uncertainty that surrounds regular income. For those who are salaried, they will receive a regular income with an assurance resulting from a permanent job. This is why it is common for banks to require self-employed individuals to earn more than those who are salaried. For example, MCB Bank requires salaried individuals to earn PKR 40,000 while self-employed individuals are expected to earn a minimum of PKR 100,000.


Borrowing Amount and Loan Period

The rate of interest will also be offered by considering the requested borrowing amount and loan term. This is applicable for both types of candidates such as salaried individuals and self-employed persons. Short term loans will cost more to both salaried individuals and self-employed.


Age of the Applicant

Banks also have different requirements when it comes to the applicant’s age. All banks will have a minimum and maximum age that individuals have to meet. However, the ages are often lower for those who earn a salary in comparison to those who work for themselves. Bank Alfalah is a prime example of this. The maximum age for individuals who earn a fixed salary is 60 while it is 65 for self-employed.


Further Criteria

Self-employed individuals are expected to meet tighter criteria in order to obtain a loan. This is mainly down to the fact that they do not have a fixed salary, which means they are more of a risk. Therefore, many banks expect salaried individuals to have been in their job for an average of two years. However, individuals who work for themselves often need to several years’ experience in their industry. It is often common for self-employed individuals to prove they have made a profit in recent years.

Of course, the eligibility criteria will differ from bank to bank. This makes it important to carry out the right comparison at


Required Documents

The documents required when submitting an application for a loan can differ. Those who earn a fixed salary will often have to provide less than those who work for themselves. Banks in Pakistan will often ask for basic documents. This includes passport size photographs, banks statements and proof of life insurance to name a few.

In contrast to this, those who work for themselves will need to provide further documentation. This includes proof of trade membership, letter from company secretary/directors and copies of income tax returns. You can review the required documents for the different type of loans at Mawazna loan comparison tool.


Interest Rates

Interest rates can differ for a number of reasons. This can include the affordability of the applicant and the reputation of their employer. For those who work for themselves, this industry they work in plays a large part. It is common for interest rates to be higher for those who are not salaried. However, those who do work for themselves can often experience better rates if they have a good history with the banks.


Compare Personal Loans

Regardless of whether you earn a fixed salary or work for yourself, it is important for you to compare all personal loans offered by different banks in Pakistan. To find the best deals that meet your needs, provides you with a facility to compare all banks in Pakistan who are offering personal loan products. It is then possible for you to find the right offer for you. is a growing financial services comparison platform in Pakistan that enables consumers to make more informed decisions when choosing financial products and services including health can and travel insurance comparison, selection and buying an insurance policy offered by leading insurance companies of Pakistan. Visit us online to compare banking (all loan products), insurance (car insurance, travel insurance, and health insurance) and broadband products to make more informed decisions.


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Author: Team Mawazna

Team Mawazna

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