About Dena Bank Personal Loan
Dena Bank offers personal loans to fulfil your personal as well as your family’s financial needs. It is called as the Dena Suvidha. The loan can be used to travel, take a vacation, to celebrate a festival, for meeting medical treatment expenses and for educational purposes. The minimum loan amount that is disbursed by the bank is Rs.15,000. Dena Bank offers loan up to Rs.1 lakh or 9 times the net monthly income, whichever is less. The repayment period is 36 months and you are charged 1 per cent of the loan amount as processing fee.
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Dena Bank Personal Loan Eligibility
The basic eligibility for an individual to avail a Dena Bank personal loan are as follows:
- Profile: The applicant must be a permanent employee.
- Age:Applicant must be at least 24 years old but not more than 55 years of age.
- Income:The applicant must have a gross monthly income of at least Rs.15,000.
- Work experience:Applicant must have worked for at least 2 years in a government or PSU or at any reputed organization.
- Income clubbing: Income clubbing is allowed to enhance eligibility. The income can be clubbed with other earning member and he/she must be a co-applicant.
Factors affecting Dena Bank Personal Loan Eligibility
Banks offer personal 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. Especially those who have their own home are given the first preference because they won’t have to pay rent and will have a higher disposable income.
- Income:The level of income indicates how much EMI one can afford to pay. Income level also affects the total loan amount that will be sanctioned.
- Age: If you are too young there is higher chance of you shifting jobs till find the right one. Banks do not prefer to offer loans to younger salaried individuals. They 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 as it shows stability in his income flow. The bank is certain that the applicant has constant cash flow to pay the EMIs.
- Other loans taken:If the applicant already has other EMIs to pay, then Dena Bank may not sanction the personal loan and burden the applicant with multiple EMIs unless he is on a higher pay scale.
How CIBIL score affects your Dena Bank Personal Loan Eligibility?
When you apply for a personal loan at Dena Bank, the bank’s first steps is to check your CIBIL score. If the CIBIL score is above the ideal range, then the bank will look into the applicant’s credit report to check his past loan and credit history. Dena Bank will 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 to settle the loan, the bank looks at it in a negative way as then they cannot be sure that you will repay the loan.
The bank 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 bank 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 Dena Bank Personal Loan Eligibility?
You can do the following to increase Dena 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. Pay off your credit card bills if you have any.
- 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 making 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 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 be 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 Dena Bank Personal Loan Eligibility
Q. What are the age limits required for a salaried individual to take a Dena Bank personal loan?
Applicant must be at least 24 years old but not more than 55 years of age.
Q. What is the minimum income requirement for a salaried applicant?
A. The individual must have a gross monthly income of at least Rs.15,000.
Q. Is there a minimum work experience required to avail personal loan by Dena Bank?
A. Applicant must have worked for at least 2 years in a government or PSU or at any reputed organization.
Q. Does Dena Bank offer income clubbing?
A.Yes, income clubbing is allowed to enhance eligibility. The income can be clubbed with other earning member and he/she must be a co-applicant.
Q. What is the tenure offered for personal loan offered by Dena Bank?
A.Dena Bank offers personal loan for a tenure of 36 months.