About State Bank of Travancore Personal Loan
Personal loans offered by the State Bank of Travancore can be used by customers to meet their short-term financial requirements from purchases of home appliances and traveling abroad to paying tuition fees and planning elaborate weddings among many others. Personal loans offered by the State Bank of Travancore can come to the rescue of those who have a medical emergency of any kind and needs funds for expensive treatment. Personal loans can, therefore, be opted for various purposes. The State Bank of Travancore, provides personal loans based on the repayment capacity of professionals. Customers can acquire personal loans ranging from Rs. 4 lakhs to Rs. 10 lakhs. Personal loans by State Bank of Travancore can be repaid in easy monthly installments.
State Bank of Travancore Bank Personal Loan Eligibility
The eligibility criteria for personal loans offered by State Bank of Travancore are as follows:
- For corporate employees
Minimum Age: 21 years
Maximum Age: 3 years before retirement date
Minimum Experience: The State Bank of Travancore offers loans to all employees of private sector companies which maintain a salary account with it (corporate salary package). Employees of private sector firms must have a minimum of 3 years of work experience to be eligible for personal loans.
Minimum Income: Rs.10,000 (net monthly income)
Maximum Loan Offered: Rs.10 lakhs (15 times the net monthly income)
Repayment: 60 months
Security: Any employee belonging to the same organization the loan applicant is working for.
- For Government/ PSU employees
The eligibility criteria for for personal loans offered by State Bank of Travancore are as follows:
Minimum Age: 21 years
Maximum Age: 3 years before retirement
Minimum Experience: Permanent employees of central, state government, defence personnel, PSUs, UGC recognised central government schools/colleges and universities with a minimum 1 year of continuous service.
Minimum Income: Rs.20,000 (net monthly income)
Maximum Loan Offered: Under the ‘Normal’ category (employees with net monthly income of up to Rs. 40,000), the maximum loan offered is Rs.4 lakhs (12 times the net monthly income). Under the Elite category (employees with a net monthly income of over Rs.40,000), the maximum loan offered is Rs.10 lakhs (15 times the net monthly income).
Repayment: 60 months
Security: The monthly salary should be credited to a savings bank account with State Bank of Travancore. Any employee belonging to the same organization the loan applicant is working for can act as a security guarantee or any person acceptable to SBT as a guarantor.
Factors affecting eligibility of State Bank of Travancore Personal Loans
The following are some of the factors which affect eligibility of personal loans
- Take-home salary: Most banks offer personal loans to salaried employees based on his or her net monthly income. It is, therefore, a given that a higher net monthly income will be considered an important determinant of approval of a personal loan request. Banks, usually, have a different set of criteria for salaried and non-salaried employees. More often than not, banks ensure that EMI on a loan does not exceed 40 to 50% of the monthly income of the loan applicant.
- Spouse support: While rules and regulations related to availing of a personal loan vary from bank to bank, in most cases, a personal loan taken jointly with the spouse, boosts the chances of getting the loan approved. Support from spouse in terms of combining the income, is one of the ways to increase your loan eligibility.
- Age: The age of the loan applicant is one of the most important eligibility criteria set by the State Bank of Travancore. Banks, typically, look for candidates who have several productive years in their kitty. While a young workforce will be the preferred choice for banks, employees in their fifties are given loans provided they have at least 3 years to go before retirement.
- Repayment: The repayment capacity of customers is of seminal importance when it comes to availing of personal loans offered by leading banks. Repayment of loans, per se, depends on several factors such as the income of the customer, the profile of his or her company, stability of employment and the possibility of promotions and/or increments among others. Banks, therefore, review all the aforementioned criteria to minimise the risk of defaults. Also, repayment history accounts for 35% of the credit score of an applicant.
- Employment Stability: The State Bank of Travancore is more likely to offer personal loans to customers who have worked with a particular company for several years. While employees of private sector firms must have a minimum of 3 years of work experience to be eligible for personal loans, those belonging to central/state government and PSUs should have a minimum of 1 year of continuous service.
- Place of Residence: Banks are more likely to offer loans to customers who live a location for a considerable period of time, the quantum of which, varies from bank to bank. Employees who do not have a permanent place of residence will have to produce the necessary additional documentation to the bank to ensure that their loan request carries more weight and not set aside by the banks for not meeting adequate requirements.
- Credit history: Prior to approving a loan, banks, typically, review the credit score of the loan applicant. Any defaults or late payments will dent the chances of loan approval by the State Bank of Travancore. The credit history of an applicant will expose any irregularities in terms of payments in addition to credit hungry behaviour or lack of financial discipline.
How CIBIL score affects your State Bank of Travancore Personal Loan Eligibility?
A robust credit score is of paramount importance to avail of personal loans by the State Bank of Travancore. If the credit score of a loan applicant is high, the State Bank of Travancore will review the application to ascertain whether the customer is credit-worthy. CIBIL score, is therefore, the first major determinant of considering a loan application. If the credit score of a customer is low, banks will reject his or her application without further investigation.
A score of 750 and above is considered desirable by most banks for approving a loan request. Also, the decision to offer a loan is the prerogative of a particular bank since CIBIL does not make any recommendations on whether the loan should be approved or rejected. Customers should ensure that any late payments or defaults on EMIs will reflect in their credit report and have an adverse effect on their credit score. Also, if customers acquire several credit cards, banks will hesitate to approve their loan applications owing to increased debt burden, raising the spectre of likely defaults.
How to increase State Bank of Travancore Personal Loan Eligibility?
- Existing Loans: Banks run an inquiry on CIBIL reports of customers to ascertain their financial health. If customers apply for multiple loans and credit cards, they will be several inquiries on their CIBIL reports, which does not bode well for customers in terms of establishing their credibility and repayment capacity. Any delays in payments of credit card bills or EMIs will result in late payment fees and surcharges. Customers should, therefore, ensure that they pay their EMIs and any other dues on time to boost their eligibility.
- Robust credit score: According to experts, customers should not use too much credit since it has a negative impact on their credit score. To avoid any unpleasant surprises in terms of rejection of loan applications, customers should review their credit history regularly throughout the year.
- Regular monitoring: Customers should monitor their co-signed and guaranteed accounts as well since they will be held liable for missed payments. Guarantors are liable to pay the loan as much as the main borrower. If the borrower is responsible for late payments or partial repayments, it will have a negative effect on any loan application request of the guarantor in the future.
FAQs on personal loans from State Bank of Travancore
Is there any concession in terms of interest rate on personal loans offered by State Bank of Travancore?
Yes. The State Bank of Travancore extends a 1% interest concession on loans offered under the normal and elite categories which are secured by equitable mortgage.
What is the penalty rate charged on EMI defaults?
The State Bank of Travancore charges a penalty of 1% p.a. (above the interest rate) on the overdue amount.
What is the maximum personal loan amount offered to corporate employees?
Under the ‘Normal’ category (employees with net monthly income of up to Rs. 40,000), the maximum loan offered is Rs.4 lakhs (12 times the net monthly income). Under the Elite category (employees with a net monthly income of over Rs.40,000), the maximum loan offered is Rs.10 lakhs (15 times the net monthly income).
What is the maximum repayment period for personal loans offered to corporate customers?
The maximum repayment period for personal loans offered to corporate customers is 60 months.