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About Karur Vysya Bank Personal Loan
Karur Vysya Bank offers personal loans with flexible spending options for individuals at competitive interest rates and with many repayment options. You can use these funds to meet the large expenses that your savings can’t cover like a child’s wedding or education, a large asset for your business, or even a family holiday. Personal loans have incredible flexibility in the way they can be spent, and Karur Vysya Bank offers personal loans that are among the best on offer.
Karur Vysya Bank Personal Loan Eligibility
The basic eligibility criteria for a personal loan from Karur Vysya Bank is as follows:
For salaried individuals:
Age: Applicants must be between 21 and 58 years of age to apply for a Karur Vysya Bank personal loan.
Work experience: Applicants must have been employed for a minimum total of 2 years and at least 1 year with the current employer.
Income requirement: Applicants must furnish income details through salary slip.
Security: Applicants must cover their loan amount with National Stock Certificates (NSCs), Kisan Vikas Patras (KVPs), IVP, RBI Bonds, LIC policies, bank deposits, etc.
Guarantor: Salaried employees must provide a colleague drawing the same salary as a guarantor in case none of the above securities can be submitted.
For self-employed individuals and working professionals:
Age: Applicants must be between 21 and 58 years of age.
Income requirement: Working professionals and self-employed persons must furnish income proofs.
Security: Applicants must cover their loan amount with National Stock Certificates (NSCs), Kisan Vikas Patras (KVPs), IVP, RBI Bonds, LIC policies, bank deposits, etc.
Guarantor: In case applicants cannot provide the above securities, a suitable guarantor with sufficient net worth must be accepted by the bank.
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Factors affecting Eligibility of Karur Vysya Bank Personal Loans
Karur Vysya Bank, like any other lender, will primarily base the eligibility of an applicant on his/her ability to repay the loan and security. Some of the primary factors that affect the bank’s confidence in your ability to repay are:
- Income. Your level of income dictates how much you will be able to pay back as EMIs, this directly affects the total loan amount that can be sanctioned. Hence, the higher your income, the more likely you are to be approved for a personal loan from Karur Vysya Bank.
- City of residence. It’s far easier to get a loan sanctioned in a metro city like Bangalore, Chennai, Mumbai or Delhi then it is in other cities.
- Your age. If you’re too young, you’re a risky candidate as young salaried people shift jobs often to exploit opportunities, but there’s a chance that one job shift might fail, and leave you unable to repay EMIs.
- Type of employment. Salaried individuals and salaried get regular incomes on fixed dates and can have EMIs due deducted directly from their salary accounts. Self-employed people must rely on market conditions and the demand for their products in order to earn an income. Karur Vysya Bank also has different securities requirements for salaried and self-employed persons.
- Residence type. Applicants who live in a residence that’s owned by them are more likely to get a loan approved, and on better terms. This because there’s no part of their income being spent on rent, and the bank has a location owned by the applicant in which to locate him/her. People living in rented houses must pay an amount of their salary as rent, lowering the disposable income left over to pay EMIs. Also, it’s easier for a person living in a rented place to abscond in case they feel they cannot keep up with EMI payments.
- Duration of residence in application location. How long you’ve been living and working in the location from which you’re applying for a loan has a huge impact on your eligibility. The longer you’ve been living in a certain place, the higher are the chances of getting a personal loan approved on your terms. Karur Vysya Bank will give more preference to applicants who’ve lived in the city for longer.
- Securities: Karur Vysya Bank requires securities and guarantors against their personal loans. Applicants holding securities like NSCs, KVPs, IVPs, RBI Bonds, LIC policies, etc. are more eligible than those who do not. Guarantors must be people with a high enough net worth, or a colleague drawing the same income, to be accepted by the bank.
How CIBIL score affects your Karur Vysya Bank Personal Loan Eligibility?
When it comes to loans, a CIBIL score that’s over 700 will merely enable you to be eligible, but a score above 800, and closer to 900 will increase Karur Vysya Bank’s confidence in your ability to repay your loan.
Your previous loan and credit card repayment history will also play an important role in instilling confidence in Karur Vysya Bank that you can and will repay your personal loan, as all this information is available in the CIBIL credit report.
Your CIBIL credit report also contains details of the types of loans you’ve taken in the past. A ratio that shows you’ve taken more secured loans than unsecured loans works in your favour.
In the past, if you’ve been unable to repay your loan and have arranged for a settlement with the bank, Karur Vysya Bank will consider this to be a negative mark and will reduce your personal loan eligibility.
How to increase Karur Vysya Bank Personal Loan Eligibility?
- Maintain a clean credit history. Ensure that you always clear your debt, on time and on the terms you’ve agreed on with the lender. This increases your CIBIL score, and eligibility.
- Lower EMIs on existing loans. A large factor that affects your eligibility is whether you already have a loan on your name for which you’re making EMI payments. It’s advised to take loans for longer tenures, as the EMIs paid monthly will be lower, thus showing that you have more funds to pay your Karur Vysya Bank personal loan back with.
- Prepayment. Paying off your existing loans before taking a new one is highly advised. A lump sum prepayment will settle your existing loan, increasing your eligibility for your new Karur Vysya Bank personal loan.
- Maintain a good mix of secured and unsecured loans. Secured loans are looked at more favourably.
- Don’t over leverage yourself. Applying for too many loans and paying off 2-3 EMIs every month can take its toll on your financial (and mental) health.
FAQs on Karur Vysya Bank Personal Loan Eligibility
Q.What are the age limits for individuals who wish to get a personal loan from Karur Vysya Bank?
A. Applicants must be between 21 and 58 years of age to apply for a Karur Vysya Bank personal loan.
Q. Is there any collateral or guarantor required for Karur Vysya Bank personal loans?
A.Yes. In order to secure a personal loan from Karur Vysya Bank, one must pledge securities in the form of NSCs, KVPs, IVPs, LIC policies, RBI Bonds, land a building, etc. If these are unavailable, a guarantor is required to be accepted by the bank.
Q. What does Karur Vysya Bank look for in a guarantor before approving the same?
A. For salaried individuals: that are taking unsecured loans, the bank requires them to bring forth a colleague who draws the same salary as the applicant.
For self-employed persons: that require personal loans without providing security, the bank requires them to bring forth a suitable guarantor with sufficient net worth.
Q. What is the maximum amount that can be sanctioned through Karur Vysya Bank personal loans?
A. Loans are sanctioned up to Rs.100 lakh.
Q. Are there any processing charges?
A. Yes, there is a processing charge of 0.40% of the personal loan.
Q. What is the maximum repayment tenure for a personal loan from Karur Vysya Bank?
A. Loans can be repaid in tenures up to 36 months with EMIs.
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