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May 2, 2023
The need for funds comes without asking: whether in an emergency or as a lifestyle requirement for funding wedding celebrations, a holiday, redecorating your home, or paying credit card bills, making an arrangement to fulfill the shortfall is a priority.
Near and dear ones may not have the resources to help now a feasible option to help solve the need is a “Personal Loan“.
Leading banks such as HDFC, ICICI, AXIS, YES BANK, and NBFCs offer loans for individual needs without any security or collateral as a Personal Loan.
Banks have devised the Personal Loan product as a quick loan making it convenient for eligible applicants to get the loan amount within 72 hours. Processing is done based on the customer profile and document proof.
A note of the Eligibility criteria required for successfully processing a Personal Loan is a good idea.
Most Banks, such as ICICI, HDFC, AXIS, and YES Bank, have similar eligibility criteria with certain variations to suit the target segment and policy. However, the essential key points to be adhered to are as follows.
The minimum age required for processing a Personal Loan is 21 years. The maximum age limit allowed by most leading Banks such as HDFC, ICICI, AXIS, and YES Bank is 60 years at the time of loan closure or till the retirement age, which could extend to up to 62 years.
The Customer needs to provide Proof of retirement age extension with the application for processing; not all lenders entertain the extension of age criteria clause, which the Customer should verify before applying.
The HDFC Bank has introduced a unique scheme for pensioners to repay a Personal Loan till the age of 65 years.
Primary education is the right of every Indian citizen, with education comes progress and the ability to create a stable future.
For candidates who have scored well, excellence is the basis for securing admission to a prestigious institution and further employment with a good package.
Financers also consider a primary education mandatory to secure a Personal loan and also offerwell-qualified individuals graduating from Top institutions, like IIT and IIM, and professionals such as Doctors, Dentists, Nurses, and Teachers discounted interest rates and enhanced loan amounts.
The Applicant’s employment status is a critical factor for issuing a Personal Loan for salaried employees. The Employer’s profile is all-important to ensure the stability of the job and regular salary for the Applicant.
The Applicant must be currently working with a:
• Public Ltd Company
• Private Ltd Company
• PSU
• Government Organization.
Employees of Proprietorship or Partnership companies are not eligible to apply.
Most Banks and NBFCs, such as HDFC, ICICI, AXIS, and YES Bank, have generated a company list the Employer must feature in the list of approved companies and the Company must be registered with the MCA or Ministry for corporate affairs and exist for five years or more.
The Applicant must have an employment history of consistent employment for 12 months or more to be eligible for a Personal Loan, submitting Documented Proof of the Employer and the employment history at the time of application.
The minimum income required to process a Personal Loan is 25,000/- as the monthly net amount transferred to the Applicant’s salary account.
Most Banks consider a salary transfer by ECS mandatory; the traditional way of cheque deposit or salary receipt by cash is not acceptable. In addition, the Employer must regularly transfer the salary on a designated date a delayed salary transfer is negative.
Banks fix the salary criteria according to the profile, the employment category, and the relationship with the Applicant. For example, HDFC Bank allows applications from candidates with a salary of 25k per month and a salary account or employed with a company listed in Category A of the company category list. For others, a wage of ₹ 30k is the minimum required.
Similarly, Banks such as ICICI, YES, and Axis Bank have their list of preferred categories to which they offer a concession in the income criteria.
Applicants working with companies that are not listed or included in a lower category will need to establish an income of 40k per month to apply for a Personal Loan, whereas State/ Central Government personnel and candidates working for Economic Times listed organizations have a salary of 25000/- High-income customers with a salary of 75k are regarded as elite applicants by HDFC Bank and awarded the Golden Edge Personal Loan benefits.
Banks and NBFC have a widespread presence in most cities, with a chain of branches and ATMs compared to smaller towns and rural areas.
A Personal Loan is unsecured therefore, the Bank conducts a residence verification to confirm the KYC Details of the Customer. The current residence, whether rented or self-owned, must be physically verified by the Bank channels having a strong presence in the metro cities, an applicant is easily contactable for confirmation.
Therefore, to be eligible, the residence location of the applicant must be included in the approved list of locations for servicing Personal Loans.
The CIBIL or Credit Bureau of India Ltd records the credit transactions of Individuals and maintains updates. Lenders refer to the CIBIL to obtain a credit score and history for all individuals applying for credit. The minimum score required to process a personal is 720 points and above.
A sound repayment track of credit held reassures the Lender that the Customer will repay the EMI as per schedule. In contrast, a poor repayment track with delays and defaults will negate the eligibility for a Personal Loan.
Applying to a Lender with a previous relationship of on-time repayment will enhance the eligibility for a Loan.
HDFC, ICICI, and YES Bank process Personal Loans for first-time loan seekers candidates without a CIBIL Score who can create a good credit history by maintaining an on-time EMI.
A rejection of a request is disheartening besides, the CIBIL Score of the applicant decreases with every credit inquiry. Therefore, checking out the possibility, or as in Banking terms called Eligibility for a Personal Loan, before applying is always a good idea.
At Yourloandvisors.com, we can help our esteemed customers to confirm their eligibility for a Personal Loan and assist them in applying to the Lender that services them best.
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