About City Union Bank Personal Loan
City Union Bank, earlier know as The Kumbakonam Bank Limited, was incorporated as a limited company on 31 October 1904. The bank played the role of regional bank in Thanjavur District Tamil Nadu, it’s main purpose is the help deposit holders to get financial help, against their deposit in a time of need for medical expenses, family urgencies, expansion of business etc. City Union Bank or CUB provides personal loans to many of their deposit holders.
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City Union Bank Personal Loan Eligibility
You are eligible for a personal loan from City Union Bank Personal Loan if you meet the below mentioned criteria:
- Age: The applicant must be above 21 years of age and less than 58 years of age.
- Deposit: Must be an account and deposit holder in the City Union Bank
- Credit score:Must have a relatively good credit score so that City Union Bank has the confidence you’ll repay the loan in a timely manner.
Documentation that will be required to be submitted as well for City Union Bank Personal Loan, if there’s any discrepancy with these documents then the loan eligibility also is questioned.
- Signed application with photograph
- Copy of ID proof such as driver’s license, voter’s ID, passport.
- Cheque for the processing fee.
- Last 3 months bank statement/ 6 months passbook.
- Documents for salaried applicants: Latest salary slip, current salary certificate with Form 16
- Documents for self - employed applicants: Latest bank statement, latest ITR and Form 16
Factors affecting City Union Bank Personal Loan Eligibility
- Income: the salary earned in a month is a vital factor to determine your loan eligibility, this shows that you’re capable of repaying the loan.
- Employment history: if you are employed with a firm, with confirmed service of minimum 3 years it increases the stability factor and your chances
- Repayment history: payments made towards your previous loans, credit cards, mortgages, vehicle loans, etc. regularly helps increase your eligibility of a personal loan since the bank is sure that you’re regular and timely with your payments.
- Credit history and CIBIL: your credit history and CIBIL score are an extremely important factor to determine your loan eligibility. All banks review your track records of previous loans taken, EMIs and payments etc. It establishes a loan pattern of your credit and repaying capabilities. Allowing the bank to trust that you will make payments regularly.
How CIBIL Score affects your City Union Bank Personal Loan Eligibility?
When an applicant applies for a personal loan with City Union Bank, the bank starts a credit check on the applicant to ensure the applicant can repay the loan applied for . If the CIBIL Score is above the required score, the bank will then consider the application and will take a look at the applicant’s credit report as well. The bank also takes into consideration the loans the previous loans applied and taken by the applicant. The bank will consider the repayment time and tenure to ensure that payments are done in a timely manner. It also considers the types of loans that the applicant has taken, if it is a good mix of unsecured or secured. If an applicant has settled a previous loan because he/she has any financial constraints, then it gets recorded in the credit report. This record is maintained for a period of 6 years. These settlements are considered a negative mark in your CIBIL report, and can also have City Union Bank question your ability to repay the loan and can even refrain from offering you a personal loan.
How to increase City Union Bank Personal Loan Eligibility
- Good credit history: Make sure that you have a good and clean repayment record, with no defaults or late payments will have a big impact on your CIBIL score and credit history. And will enhancing your chances rather that hamper it.
- Prepayment of loans:Prepaying your existing loans, and showing you have more funds available on a monthly basis, will help your credit score and CIBIL report.
- Few loans at a time: Applying for multiple loans with various banks at a time can affect your chances of getting a personal loan. All the banks run a credit check to ensure your repaying capabilities and each application gets recorded in your credit report. Your credit score thereby gets affected.
- Tenure of loan: The loan tenure also affects your credit history, financial experts believe that increasing your loan tenure, makes it easy on the pocket on a monthly basis. Making it easier to pay and not defaulting or paying late. And eventually helps you with your eligibility.
FAQs on City Union Bank Personal Loan Eligibility
Q. What’s the maximum loan eligible for deposit holders?
A. The maximum amount of the loan against deposit is 80% of the balance in the deposit, if the deposit is in the name of the minor, the guardian can raise the loan on behalf of the minor.
Q. What is the minimum and maximum age limits for an applicant of a personal loan with City Union Bank?
A.The minimum age should be 21 years and maximum of 58 years. In case of a minor, the guardian can apply on their behalf.