About Standard Chartered Bank Personal Loan
Standard Chartered offers a Personal Loan for all of your personal requirements. You can use the loan for your child's higher education, to purchase consumer durables or a personal computer, a car or a two wheeler, to meet the expenses of family functions like weddings, christening, etc., to go on a vacation, to consolidate your existing debt into a cheaper debt - or to make just about any personal payment.
Standard Chartered Bank provides personal loan starting from Rs.1 lakh to Rs.30 lakhs depending on the eligibility, income and repayment capacity. The borrower can repay the loan over a period of 12-60 months. He need not provide any collateral. No guarantor is required to obtain the loan.
Standard Chartered Bank Personal Loan Eligibility
The basic eligibility for a salaried individual to avail a Standard Chartered personal loan are as follows:
- Profile: Applicant must be a resident either salaried or self-employed.
- Age: Applicant must be at least 22 years old but not more than 58 years of age.
- Income: Applicant's net monthly salary must be a minimum of Rs.22,000.
- Identity proof: Applicant must have valid ID proof like passport, pan card, driving license, voter ID and ration card with photo.
- Address proof: Address proof like passport, telephone bill, ration card, electricity bill, driving license, life or medical insurance policy, rental agreement, apartment allotment letter.
Factors affecting Standard Chartered Bank Personal Loan Eligibility
There are many factors that affect the applicant's’ eligibility. Banks prefer to give loans to those who are capable of repaying the loan and who do not default on making the payments. Some factors that affect an applicant’s eligibility are:
- Residence: Individuals living in metro cities are given a personal loan easily. Standard Chartered gives preference to those who have their own home than compared to those living in a rented flat. That is because those who have their own home will not have an additional financial burden of paying the rent and he will have a higher disposable income.
- Income: The level of income indicates how much you are capable of repaying the loans and paying the EMIs. This affects the total loan amount that will be sanctioned to you. If your income is higher, the higher are your chances of getting a bigger amount loan.
- Age: If you are too young, the banks will hesitate to give you a loan as there is a higher chance of the applicant shifting the job. The banks prefer those who have stability in work life.
- Employment status: An applicant who has stayed in a company for a longer period will get higher preference. It shows stability of income and the bank can be assured that the applicant is having constant cash flow to pay the EMIs.
- Other loans taken: If the applicant already has some other loans, then the chances of him getting a personal loan from Standard Chartered Bank is lower unless he has a higher range of income. The bank will not provide another loan as it will be a burden for the applicant to afford multiple EMIs. He may find it difficult to pay off the debt and default on making the payments.
How CIBIL score affects your Standard Chartered Bank Personal Loan Eligibility?
When an applicant applies for a loan with Standard Chartered Bank, the bank runs a credit check on the applicant. If the CIBIL Score is above 750, the bank will further consider your application and go through your credit report.
The bank will check your credit report and take into consideration the loans that you have taken previously and closed. It will check the credit payment history to check how efficiently you have repaid the loan and if you have defaulted in making payments. It also considers the types of loans (secured and unsecured loans) you have taken.
If you have agreed to settle for a loan due to certain financial constraints, then it gets recorded in the credit report and stays in the report for 6 years. The settlement of the loan is considered as a negative remark and hence the Standard Chartered Bank might not offer you a personal loan as they might be unsure about your capacity to repay the loan.
How to increase Standard Chartered Bank Personal Loan Eligibility?
You can do the following to increase Standard Chartered Bank personal loan eligibility:
- Maintain a good credit history: Be sure to pay all your EMIs on time and that you don’t default making payments. Find ways to increase your CIBIL score and never agree for a settlement, find other ways to pay back the loan.
- Get lower EMIs on existing loans: If you are able to, refinance your existing loan for a lower interest rate or extend the tenure of the existing loan. This can reduce the EMIs each month and ensure that you do not miss out on making payments.
- Prepayment: If you have lesser EMIs left on any loan, then prepay them and close the loan. The applicant will then have a higher disposable income, and stand a chance of getting a higher amount loan.
- Have both secured and unsecured loans: Have a mix of both the types of loan. Build equal credit and asset. Secured loans are looked at favourably and increases your eligibility.
- Don’t apply for too many loans: If you are in need of a loan, then don’t apply at all the banks as they will all then run a credit check which gets recorded in your credit report. This will also look bad on your report and affects your credit score.
- Don’t have too many credit cards: Having too many credit cards is also unfavourable. Though you may not have used up all the credit on the cards, it will considerably lower your overall credit limit.
FAQs on Standard Chartered Bank Personal Loan Eligibility
Q. What are the age limits required for a salaried individual to take a Standard Chartered Bank personal loan?
A. Applicant must be at least 22 years old but not more than 58 years of age.
Q. Is there a minimum income requirement for a salaried applicant?
A. Yes, the applicant's net monthly salary must be a minimum of Rs.22,000.
Q. Should I be submitting any identity and address proof?
A. Yes, the applicant must submit valid ID proof like passport, pan card, driving license, voter ID and ration card with photo.
He must also submit address proof like passport, telephone bill, ration card, electricity bill, driving license, life or medical insurance policy, rental agreement, apartment allotment letter.
Q. What is the minimum and maximum loan sanctioned by Standard Chartered Bank?
A. The minimum amount sanctioned towards personal loan is Rs.1 lakh and the maximum amount is Rs.30 lakhs.