Corporation Bank offers personal loans to those who have genuine expenses and do not have the finances to deal with. The loan could be used to finance a wedding, to take a vacation and for meeting medical emergencies. It provides personal loans to salaried class, pensioners and other individuals who have regular dealings with the banks. They are offered loan up to Rs.2 lakhs depending on the applicant personal loan eligibility, income and repayment capacity. A suitable co-applicant or a third party guarantee is to be provided.
Corporation Bank Personal Loan Eligibility
The basic eligibility for an individual to avail a Corporation Bank personal loan are as follows:Profile: Applicant must be a resident and a salaried individual whose salary is routed through the bank or a pensioner drawing pension through the bank or other than salaried class who have regular dealings with the branch. Age: Applicant must be at least 21 years old but not more than 58 years of age. Income: The salaried individual must have regular income.
Factors affecting Corporation Bank Personal Loan Eligibility
Banks give loans to those who are capable of repaying it and who do not default on making the payments. Some other factors that affect an applicant’s eligibility are:
- Residence: Applicants living in metro cities get personal loans easily. Those who have their own home are given the first preference because they won’t have an additional financial burden of paying the rent and will have a higher disposable income.
- Income: The level of income indicates how much EMI one can afford to pay. This affects the total loan amount that will be sanctioned to you. If your income is higher, you can get a personal loan for a higher amount.
- Age:If you are too young, the chances of you shifting jobs are higher and the banks do not prefer to offer loans to younger salaried individuals. The banks usually prefer to give loans to those who have stability in their work life.
- Employment status:An applicant who has stayed in a company for a longer period will get higher preference. It shows stability in his income flow. The bank is assured that the applicant has constant cash flow to pay the EMIs.
- Other loans taken: If the applicant already has other EMIs to pay, the Corporation Bank may not sanction the personal loan and burden the applicant with multiple EMIs unless he has a higher range of income.
How CIBIL score affects your Corporation Bank Personal Loan Eligibility?
When you apply for a personal loan at Corporation Bank, the bank’s first steps is to check your CIBIL score. If the applicants CIBIL score is above the ideal range, then the bank will look into his credit report to check his past loan and credit history, to check how the applicant has paid his credit in past and if he has defaulted in paying any credit or EMIs.
The bank also looks for the information of settlement of loans if the applicant has settled any loan in the past due to any unforeseen and unavoidable situations, though it may look like a good deal for you at the moment, the banks look at it in a negative way as then they cannot be sure that you will repay the loan.
The banks also look into the various type of credit you have taken over the years. If you have taken unsecured credit and no secured credit, the banks may be cautious towards you as then they will not know if you have any collateral and have built any asset to ensure that the loan is repaid.
How to increase Corporation Bank Personal Loan Eligibility?
You can do the following to increase Corporation Bank personal loan eligibility:
- Maintain a good credit history:You can maintain a good credit history by paying all your EMIs on time, finding ways to increase your CIBIL score by having less credit and a balance of both secured and unsecured loan.
- Get lower EMIs on existing loans:If your current EMIs are higher, refinance your existing loan for a lower interest rate or extend the tenure of the existing loan. This reduces the EMIs and ensures that you do not miss any payments.
- Prepayment: If you have lesser EMIs left on any loan, then prepay them and close the loan. This increases your disposable income and also the credit limit while applying for a new loan.
- Have both secured and unsecured loans: Having a mix of both the secured and unsecured loans is favourably looked at by the banks. You need to build equal credit and asset. Secured loans increases your eligibility as the bank will know that you have built some asset and therefore can find ways to pay back the loan.
- Don’t apply for too many loans at a time: If you are in need of a loan, then don’t apply at all the banks at one time. All the banks will run a credit check together and it will get recorded in your credit report. This also affects your credit score.
- Don’t have too many credit cards:Though you may not have used up all the credit on the cards, it will however considerably lowers your overall credit limit.
FAQs on Corporation Bank Personal Loan Eligibility
Q.What are the age limits required for a salaried individual to take a Corporation Bank personal loan?
A. Applicant must be at least 21 years old but not more than 58 years of age.
Q.What is the minimum income requirement for a salaried applicant?
A. The individual must have regular income.
Q. Who are eligible to avail personal loan by Corporation Bank?
A. Resident and a salaried individuals whose salary is routed through Corporation Bank. A pensioner drawing pension through Corporation Bank or other than salaried class who have regular dealings with the Corporation Bank branch.
Q. What is the tenure offered for personal loan offered by Corporation Bank?
A. Corporation Bank offers personal loan for a tenure of 3 years.