About South Indian Bank Personal Loan
South Indian Bank (SIB) is a pioneer in the Indian banking industry, having established itself as a role model for other banks. It offers a host of financial products and services to its customers, catering to multiple needs of a diverse population. The South Indian Bank personal loan scheme is designed to provide monetary relief to meet any personal financial requirement, offering loans at extremely competitive rates and flexible repayment options.
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South Indian Bank Personal Loan Eligibility
South Indian Bank offers loans to individuals and groups under its personal loan scheme. The basic eligibility criteria for South Indian Bank loans are mentioned below.
- Employment – Applicants should be permanent employees of reputed firms/companies or any government undertaking.
- Service – Applicants should have service equivalent to the repayment period, i.e. they should not retire before the loan is cleared.
- Steady income – Applicants should have a steady source of income.
- Experience – Applicants should have relevant experience and expertise in their field of work.
- IT returns – Applicants should have filed IT returns.
- Employment – Group loans can be availed by employees of reputed companies or government undertakings.
Factors affecting South Indian Bank Personal Loan Eligibility
The eligibility criteria for a South Indian Bank personal loan can be affected by multiple factors, some of which are mentioned below.
- Age – Young candidates are viewed as risky propositions when it comes to loan applications, as they might not be financially stable. Applicants nearing retirement might also be considered risky as their income might not be steady post retirement, casting doubts on their repayment capacity, which is why SIB does not provide personal loans to individuals approaching retirement.
- City of residence – Residents of metropolitan cities are likely to get their loans processed faster than applicants from smaller towns.
- Income – The income earned by an applicant should be sufficient to pay the EMIs without putting extra burden on him/her. A low income might jeopardise the loan repayment process, hampering the chance of getting a loan.
- Existing debt – An existing debt can become a financial burden, impacting loan repayment.
- Employment history – Stability in professional life and suitable work experience could improve the chances of obtaining a SIB personal loan.
- Relationship with SIB – A healthy banking relationship can prove to be a deciding factor in availing a personal loan from South Indian Bank.
- Employment status – Permanent employees of reputed firms have a better chance of getting a loan sanctioned compared to temporary or probationary employees.
- Educational qualifications – Highly qualified individuals stand a better chance of getting a high paying job, which means they would be less likely to default on payments due to financial constraints.
How CIBIL score affects your South Indian Bank Personal Loan Eligibility
South Indian Bank relies on the CIBIL score of an applicant to gauge his/her financial history and credibility, often becoming the core factor which determines the approval/rejection of a loan application. A good CIBIL score speaks highly about a candidate, indicating a good financial past, improving the chances of an applicant getting the loan approved. A CIBIL score of around 750-800 will ensure an applicant is eligible for a SIB personal loan, but this alone is not a guarantee for it. Individuals with an average score might have to rely on other factors to get the loan sanctioned.
A score of 900 increases the < a href="/personal-loan-eligibility.html">Personal Loan eligibility significantly, as this score reflects the creditworthiness of an applicant. CIBIL scores below 700 speak poorly about an applicant, and SIB might be hesitant to sanction loans in such cases.
How to increase South Indian Bank Personal Loan Eligibility
- Longer tenure – A Longer tenure Personal Loans reduces the EMI, providing an applicant more time to pay off the loan without putting an extra burden on his/her income.
- Mix of secured and unsecured loans – A mix of both un secured and secured loans helps in improving the credit rating of an applicant.
- Prepayment – Prepaying any existing loans will leave an applicant with more disposable income, increasing the chance of obtaining a loan.
- Timely payment – Timely payment of credit card bills and EMIs help in improving the credit rating of an applicant, in turn improving the CIBIL score.
- Limiting the loan amount – Higher the loan amount, longer a bank takes to scrutinize the application. Applying for small, necessary amounts can quicken the entire process, with banks generally approving it without hassle.
- Cutting down applications – A large number of loan applications lowers overall credibility, making it harder for an applicant to get a SIB personal loan.
FAQs on South Indian Bank Personal Loan Eligibility
Q. What is the maximum loan amount one can avail under SIB personal loan?
A. The maximum loan amount one can avail under this scheme is Rs 3 lakh.
Q. Are NRIs eligible for this loan?
A. Yes, NRIs are eligible for this loan, subject to them satisfying certain income criteria.
Q. Should an applicant have a South Indian Bank account in order to avail a loan?
A. Yes, applicants should have a SIB account as the loan amount is credited directly to this account.
Q. Do loan applicants have to furnish security/guarantor before obtaining a loan?
A. Yes, applicants need to furnish security or a guarantor in order to avail a loan. The security could be property or any other collateral.
Q. Are individuals who do not fall under the tax bracket eligible for a SIB personal loan?
A. Yes, individuals who do not fall under the tax bracket are eligible for a personal loan, subject to them giving a declaration of the same.