Overview about Syndicate Bank
Syndicate Bank is one of the oldest banks of India. In the year 1969, the bank was nationalized by the government of the country. Currently the bank offers various financial products and services to customers in India as well as certain other countries. The bank offers online banking as well as core banking services to customers.
Perfect Personal Loan Deals for you
Syndicate Bank provides a host of financial products and services to its customers. These include, personal banking, agricultural banking, bancassurance, mutual fund services etc. Personal loans from Syndicate Bank fall under the category of personal banking and are a great financial tool to obtain money for various personal financial requirements.
Syndicate Bank Personal Loan Eligibility Criteria
In order to obtain personal finance from Syndicate Bank. Certain eligibility criteria need to be fulfilled by customers. Some of the most important eligibility parameters are listed below.
- Job Type
- Age eligibility
- Loan applicant should have a regular, stable job
- Maximum loan amount is Rs.3 lakhs
Salaried customers Permanent employees of government sector firms like State govt. employees, central govt. employees and teachers at state run schools Non-salaried customers Professionals like engineers, doctors, CAs Other borrowers Other customers who are willing to deposit a collateral as security and avail personal finance
In the age-group of 21-58 years
Factors affecting Syndicate Bank Personal Loan Eligibility
Personal finance is generally an unsecured form of credit and therefore, a lot of factors go into ensuring banks that a customer is truly eligible to obtain loan. Some of the most important eligibility factors considered by Syndicate Bank are listed below.
- Age of the applicant
- Type of job of the applicant
- Stability of job
- Credit history
- Relationship with the bank
- Monthly income of the loan applicant
- Existing debt liabilities
Age of the personal loan applicant makes a huge difference to a customer’s loan eligibility. Banks prefer customers in the age bracket of working population so as to ensure that the loan borrower will be able to repay the loan over the stipulated period of time.
The nature of your job indicates to an extent your repayment capacity and your frequency of payment. Customers with regular jobs are expected to pay regular installments and are more prone to paying their loans completely. This is the reason why customers from the government sector and those working with renowned companies are preferred by banks and are considered more eligible for credit than others.
Stability of job translates to a steady flow of income and as such higher chances of loan repayment and less chances of default. Hence, a stable job is a positive player in loan eligibility calculation.
Your credit history shows your credit borrowing and repayment pattern in the past. Banks extrapolate on this history to ascertain your loan repayment pattern in future. Customers with a good credit history are eligible for personal loans since these customers are proven regular payers of dues and have less chances of default.
Existing relationship with the bank is an important criteria in determining loan eligibility. If you have an existing account with a bank, it means that the bank is sufficiently informed of your payment patterns, amount in your account and so on. This gives lending entities a lot of information to fall back on in order to determine eligibility.
Banks generally want only less than 40% of your monthly income to go towards loan repayments. In case existing debt liabilities are more then, this percentage of monthly salary might go up, in which case, customer might be less eligible for obtaining personal loan.
In case there are a number of loans pending on an applicant’s name, the chances of repayment become bleak and as such banks do not generally grant loans for people with multiple credit liabilities.
How credit score affects your Syndicate Bank Personal Loan Eligibility?
Credit score is a number furnished by CIBIL by reading and assessing your credit report. In a nutshell, credit score reflects your credit-worthiness. Banks fall back on this score to a great extent when determining loan eligibility.
A good credit score is a must to avail personal finance. Customers who tend to pay their bills and loans on time and who make regular payments are the ones with good credit history. Customers with poor credit score find it really hard to obtain credit. Even if they do, their personal finance comes at exorbitant interest rates. It is advisable for customers to check their credit score and rectify it if needed, before applying for personal loan with any bank.
How to increase Syndicate Bank Personal Loan Eligibility?
Personal loan eligibility can be increased by taking a few steady steps that contribute to strengthening a customer’s credit history.
- Maintain a good credit history:
- Have a mix of both secured and unsecured loans:
- Don’t apply for finance in too many banks:
- Do not change your job frequently:
As discussed in the section above, a good credit history is imperative to higher loan eligibility. Customers should always know their credit score and credit history before they start applying for personal loans. This will give them the required buffer time to improve their credit history.
Having a mix of both unsecured and secured loans in the financial portfolio indicate a more aware and responsible customer. This in turn has a positive effect on your credit score and subsequently on your personal finance eligibility with Syndicate Bank.
You might not come to know but the more loan applications you make, the lower your credit score goes. This means that instead of applying at multiple banks for loan, the best way is to research and find out about the loan product you wish to avail and then apply for just that loan scheme with the bank of your choice.
A stable job and a regular salary are pre-requisites for obtaining personal loan from any bank. Customers who frequently change jobs show an erratic monthly income and hence such customers have lower eligibility than those with steady jobs.
FAQs on Syndicate Bank Personal Loan Eligibility
What is the maximum personal loan amount offered by Syndicate Bank?
The maximum loan amount that can be availed under the personal finance scheme of Syndicate Bank is Rs.5 lacs. Quantum of loan is also dependent upon the salary of the loan applicant. It comes as a certain percentage of the annual salary.
What is the service charge for personal loan from Syndicate Bank?
Service charges are subject to bank’s discretion and are decided on a case-to-case basis.
Do I need to be an existing Syndicate Bank customer to avail personal loan?
Yes. Existing customers of Syndicate Bank are offered personal finance. New customers can first obtain an account with the bank and then apply for personal loan.
Can self-employed individuals apply for personal finance from Syndicate Bank?
Yes. Self-employed individuals can also apply for Syndicate Bank personal loan.
Does Syndicate Bank offer separate personal finance scheme for women applicants?
Yes. Special personal finance scheme is offered by Syndicate Bank for women applicants.
Do I need to submit a collateral as security for personal finance from Syndicate Bank?
Yes. A collateral is needed by the bank for sanctioning your personal loan.