South Indian Bank Personal Loan Eligibility

1. Credit score - A credit score of 750 and above is considered a good score and if your score falls in this range, your eligibility for a personal loan will be higher. A high credit score is an indication of your high repayment capacity and hence, lenders will be happy to offer you a loan.
2. Income - For lenders, a higher income is indicative of high repayment capacity and so, if your income is on ">the higher side, your eligibility will be higher. Besides the income, lenders will also prefer your debt-to-income ratio to be low.
3. City of residence - If you are living in a metropolitan city such as Delhi, Chennai, Kolkata, etc., your eligibility will be higher. This is simply because lenders associate your ability to afford the lifestyle in a metropolitan city to your repayment capacity. The maximum loan amount may also be higher in metros.
4. Relationship with the bank - If you are an existing customer of South Indian Bank and have a good transaction history with them, your eligibility will be higher. This is because the bank is aware of your past records and is confident that you will be sincere in making repayments.
5. Continuity of business or employment - When evaluating your eligibility, lenders will require you to be employed for at least 1 year with the current employer and at least 2 years of total employment, if you are a salaried applicant. Self-employed applicants have to be in the same line of business for at least 3 years to be eligible for a personal loan.

How to Increase your Eligibility for South Indian Bank Personal Loan

1. Maintain a healthy credit score - As stated above, your credit score plays a very important role in your eligibility for a personal loan. You should maintain a credit score of at least 750 to increase your eligibility and you can do so by paying your EMIs, credit card debts, etc., on time. Also, remember to check your credit score regularly so that you can take corrective measures to improve it in case it is low.
2. Choose a longer repayment tenure - Opting for a longer repayment tenure will reduce the amount of EMI you pay each month which gives the lender the impression that you will repay your loan on time. However, do know that choosing a longer tenure will result in you paying higher interest over the loan tenure.
3. Apply for a lower loan amount - By choosing a lower quantum of loan, you can increase your eligibility for a personal loan from South Indian Bank. When you apply for a lower amount of loan, lenders see the risk in lending to you as low and hence, will gladly offer you a loan.
4. Do not apply for multiple loans at the same time - Your credit score takes a hit when you apply for too many loans at the same time which, in turn, lowers your eligibility. Hence, if you do not want the lender to reject your loan application, ensure that you clear off all your existing loans before you apply for a new loan.
5. Be steady in your job or business - When you change your job or the line of business often, whether you are salaried or self-employed, your eligibility may decrease. Therefore, you should ensure that you are continuously employed for at least 2 years with at least 1-year with the current employer, if you are salaried. In case you are a businessman, you should be in the same line of business for at least 3 years to be eligible for a personal loan.

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