A personal loan is an unsecured advance offered by both banks and non-banking financial corporations to any eligible individual. It is very important to be aware of your personal loan eligibility details as this will simplify and quicken your application process. Each bank has separate minimum criteria for income, age, employment type, credit score, job status, etc. You will need to meet these criteria in order to apply for a personal loan from a particular lender.
To meet the personal loan eligibility criteria, you will first need to be at least 21 years old and not more than 65 years old. This age limit can vary from bank to bank. Your CIBIL score will also be assessed to assess your eligibility. Preferably, it should be 750 or above. Your lender will also fix a minimum and maximum loan amount as per your repayment capacity and income. Make sure you find out all these details before you apply for a loan.
Eligibility criteria varies across lenders depending on the borrower’s profile and relationship with the bank. General requirements and limits are outlined below:
|Minimum age limit||21 yrs.|
|Maximum age limit||60 yrs.|
|Employment Type||Salaried/Self-employed professionals/non-professionals|
|Employment Status||Employed/In-business for at least 2 yrs., at least 1 yr. with current employer/business|
|Minimum Income||Rs.4,000 - Rs.20,000 net income p.m. (varies according to area - usually higher in cities)|
|Maximum Loan Amount||Up to Rs.50 lakhs (Based on income, repayment capacity and existing EMIs)|
|Credit Score||CIBIL score 350 - 900|
Being unsecured advances, lenders do not wish to take on very risky clients. Eligibility depends different factors:
It can be hard for borrowers to figure out where they stand with their lender in terms of being a prospective customer. How does one rank on a lender’s risk-scale and how does this affect the loan amount, tenor and interest ?In order to make this process easier and more transparent, Bank Bazaar allows its users to input basic background information on its site to check their eligibility for a personal loan. In quick, easy, steps users can receive instant and free quotes based on the criteria provided.Users can then make real-time comparisons of the best personal loans available to them across banks and apply for deals offered exclusively on Bank Bazaar’s site through collaborations with partner banks/finance companies.
The top banks in India such as SBI, HDFC, ICICI, and Axis bank offer personal loans at reasonable and affordable interest rates. You can apply for a personal loan from any of the following banks provided you fulfil their personal loan eligibility requirements. However, instead of personally visiting the banks to get a personal loan, you can straightaway go to BankBazaar - an online portal for all your financial needs and queries. At BankBazaar you can check, compare and choose the best personal loan scheme based on your requirement.
State Bank of India offers personal loans for both salaried, self-employed individuals and pensioners. Under its personal loan segment, you can apply for three different types of personal loans, provided you fulfil SBI Personal Loan Eligibility criteria.
SBI offers - Xpress Credit Personal Loan, SBI Saral Personal Loan, and Loans to Pensioners.
You need to furnish the following documents if you are an existing SBI customer:
A new customer has to furnish identity card and address proof in addition to the above mentioned documents.
Your eligibility for an SBI personal loan is determined by your income and repayment capacity. If you are an Indian resident, you can usually avail a loan up to Rs.2.50 lakhs with a 1% processing fee (on the loan amount) which is the lowest fee charged in the industry. In metros like New Delhi, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata, the salaried and self-employed professionals can avail personal loans up to Rs.5 lakhs. If you are a pensioner, you should not be more than 76 years old.
HDFC bank offers personal loans to help you accomplish various needs without experiencing financial worries. It has a speedy approval process with easy documentation. HDFC offers you competitive pricing and maintains transparency in the whole process. You can get your personal loan disbursed in 2 days. HDFC’s personal loan products are available at highly competitive interest rates. For HDFC account holders, the bank offers special benefits, interests rates and charges. For women employers, it has special personal loan offers. You can check your HDFC Personal Loan Eligibility at BankBazaar and instantly apply for it online.
Personal loan eligibility in HDFC is based mainly on your income and age. However, documentation differs from person to person. Normally, the following documents are required to be submitted:
Personal loan eligibility at HDFC bank is determined by the following criteria:
ICICI bank offers personal loans for various purposes such as education, house renovation, holidays, wedding, buying gadgets etc. Under the ICICI personal loan eligibility process, you can get multi-purpose loans with flexible tenures and rates. You can pay your loans in easy installments and also repay through auto debit, ECS and PDC facilities. The bank maintains an easy documentation process with instant processing. The privilege banking customers are eligible for personal loan up to Rs.15 lakhs with flexible repayment option of 12-60 months. Instead of visiting the bank, you can check your ICICI bank personal loan eligibility at BankBazaar and apply for it directly, online.
There is a difference in documentation for salaried and self-employed individuals to apply for personal loans at ICICI bank. Salaried employees need to furnish the following documents:
A self – employed person needs to submit the following documents:
Both salaried and self-employed individuals are eligible for ICICI bank personal loans.
A salaried individual needs to fulfill the following criteria:
A self-employed person needs fulfill the following criteria:
Now, you can fulfil manifold dreams with Axis Bank’s personal loan offerings. Axis Bank's personal loan products are available to salaried residents as well as NRIs. Amounts disbursed under personal loan schemes from Axis Bank start at Rs.50,000 and go up to Rs.15 lakhs. The bank offers personal loans at some of the best interest rates in the market with minimum documentation requirements. Repayment tenures range between 12 to 60 months.
Documentation requirements vary from individual to individual depending mainly on age and income of the applicant. Normally, the following documents have to be submitted:
If you are a salaried individual, you can apply for an Axis bank personal loan. Employees of select MNCs and public and private limited companies, salaried doctors, government sector employees can apply for Axis Bank personal loans. To qualify for these loans you will need to fulfil the following personal loan eligibility criteria:
Getting a Personal Loan is easy. And sometimes it’s easier to overlook little details. Let’s go through some mistakes that people make while applying for a Personal Loan. Care to check out our offers?
Not Looking beyond Interest Rates
Interest rates are important, no doubt. But in the bargain, you end up ignoring other aspects of the loan such as processing fees, tenure, pre-payment clause, late-payment charges, and eligibility criteria, among others. When ignored, you could end up paying more.
Biting off More Than You Can Chew
Well, in this case, we mean borrowing more than you actually need. Perhaps you’re eligible for a bigger amount based on your credit rating. But taking a loan comes with the responsibility of repaying it on time. And it’s easy to get carried away. Not Reading Between the Lines
The executive processing your loan will simply mark the places that you have to sign, but the onus is on you to read through the document carefully before signing. Once signed, the fact that you may or may not have gone through the terms and conditions becomes immaterial.
Applying Without Comparing
So, bank ‘A’ is offering you a Personal Loan and without second thoughts you apply. But what if bank ‘B’ has no processing fees or lower interest rates? You wouldn’t know if you haven’t compared enough.
Possible Risks of Unsecured Personal Loans
Applying for a personal loan is the easiest way to fulfil your dreams. You can procure a personal loan from any bank for consolidating your debts, for sponsoring your education course, or for remodelling your abode. However, you should avoid taking this unsecured loan for certain reasons such as wedding arrangements, extravagant vacations, etc. This loan can be extremely expensive when you take it for such needs. When you apply for a personal loan, your creditworthiness will be checked to see if you should be given the loan or not. This is because it is unsecured in nature. You should also be wary about the interest rate charged for your personal loan. Check out the complete list of risks associated with unsecured personal loans here!
5 Precautions to Make Sure Your Personal Loan Does not become a Debt Trap
Taking a personal loan is a great way to fund your various financial needs. It is easily available and does not need any collateral for it to be approved. However, if you are not careful enough, your personal loan may become a personal debt that will torment you a lot. Hence, use these tips to have a stress-free lending experience. Avoid taking several loans. Taking numerous loans will land you in big trouble. Assess your repayment ability and then borrow accordingly. Also, make sure you pay each installment promptly. Never ever miss the fine print on your loan document. Learn more ways to ensure that you avoid a debt trap by clicking here!
10 Vital Rules to Follow When Lending Money to Family and Friends
It is very common in India to provide financial support casually to our friends and family. Whenever any loved one asks us for a small loan, we just cannot say ‘no’. While you are giving a hand loan to someone you know, you should follow certain simple guidelines very strictly. Make sure you give the loan only via cash. Please stay away from being a guarantor for your folks as it may lead to unnecessary trouble. Being a guarantor comes with many responsibilities. You should also remember to give a loan that you can afford. Don’t go overboard just to help your friend. The other key rules while lending funds your family or friends check here