- July 4, 2020
- Posted by: Ganeshcbani
- Category: Blog
How to Check eligibility for personal loans?
Apart from the aforementioned requirements, the capacity for repayment is another primary factor affecting an applicant’s eligibility for a personal loan. There are two key ways for banks to monitor the maximum loan sum they can lend depending on a person’s repayment capacity:
The FOIR method primarily takes account of the total monthly payments to be paid to the applicant for outstanding loans / credit card duties. Usually, when an applicant’s FOIR reaches 50 percent of the income, the application for a personal loan will be dismissed.
Net Monthly Revenue System – Some lenders set a maximum credit limit on the applicant’s Net Monthly Revenue (NMI) multiplier. In such cases, the applicant’s eligible personal loan may be up to 30 times the NMI. In these cases, when the loan requested exceeds that amount, the application may not be considered eligible for a personal loan without security.
Eligibility Requirements for Personal Loan
The following are some main considerations that are taken into account by lenders before they give an entity a personal loan. While weights of various factors may vary from borrower to borrower, the following list provides a snapshot of a key factor considered by a lender when determining an eligibility of a future borrower for a personal loan
This is a 3-digit amount that explains how the credit card and personal loans were paid back in the past. This score is determined by credit agencies and ranges between 300 and 900. The nearest the score to 900, the higher the chances for a new personal loan are.
Banks typically offer personal credit to both private, public, and international salaried professionals as well as self-employed people and professionals such as entrepreneurs, CA (chartered accountants), physicians, architects, etc. Lenders prefer salaried workers working in respected companies or government employees to a personal loan because of their workplace security and prestige as employers.
Most banks provide private loans to people between 18 and 60 years of age. Although older persons can also be eligible for a personal loan like a pension loan, there are usually other limitations on grants.
Most banks’ minimum monthly salary requirement for wage skilled workers are Rs. 15,000. However, banks favor individuals with a minimum monthly income of Rs. 25,000 more. The gross annual income of at least Rs. 5 lakh is usually required for self-employed individuals to qualify for a personal credit.
Work / business experience
Most banks say that workers in the current company must have a minimum of cumulative work experience of 2 years and a minimum of 6 months in order to apply for a personal loan. For individuals and professionals self-employed, they typically have to be in the current company for at least 2 years to be eligible for an unpaid personal loan.
Personal Loan in Banks/NBFC
|Lenders||Loan Amount||Tenure||Age Limit|
|Axis Bank||Rs. 50,000 to Rs. 15 Lakh||12-60 Months||21 to 60 Years|
|Bajaj Finserv||Up to Rs. 25 Lakh||12-60 Months||23 to 55 Years|
|CASHe||Rs. 10,000 to Rs. 2 Lakh||15-180 Days||Above 18 Years|
|Citi Bank||Up to Rs. 30 Lakh||12-60 Months||Above 18 Years|
|Faircent||Rs. 10,000 to Rs. 10 Lakh||6 – 36 Months||Above 18 Years|
|Fullerton India||Up to Rs. 40 Lakh||Up to 48 Months||21 – 60 Years|
|HDB Financial Services||Up to Rs. 20 Lakh||12-60 Months||21 to 65 Years|
|HDFC Bank||Up to Rs. 40 Lakh||12-60 Months||21 to 60 Years|
|ICICI Bank||Up to Rs. 20 Lakhs||12-60 Months||23 to 58 Years|
|IDFC First Bank||Rs 1 Lakh to Rs 25 Lakh||12-60 Months||23 to 58 Years|
|InCred Finance||Rs. 75,000 to Rs. 15 Lakh||12-60 Months||Above 18 Years|
|IndusInd Bank||Rs. 50,000 to Rs. 15 Lakh||12-60 Months||21 to 60 Years|
|Kotak Mahindra Bank||Rs. 50,000 to Rs. 15 Lakh||12-60 Months||21 to 58 Years|
|Money View||Rs. 10,000 to Rs. 5 Lakh||3 – 36 Months||Above 18 Years|
|Oye Loans||Rs. 10,000 to Rs. 1 Lakh||12 Months||Above 18 Years|
|PaySense||Rs. 5,000 to Rs. 2 Lakh||3 – 24 Months||21 to 60 Years|
|RBL Bank||Rs.1 Lakh to Rs. 20 Lakh||12-60 Months||25 to 60 Years|
|Standard Chartered Bank||Rs.1 Lakh to Rs. 30 Lakh||12-60 Months||21 to 60 Years|
|Tata Capital||Rs. 75,000 to Rs. 25 Lakh||12 – 72 Months||22 to 58 Years|
|YES Bank||Rs 1 Lakh to Rs 40 Lakh||12-60 Months||22 to 58 Years|
The documents needed for the availability of a personal loan are different for an employee and a self-employed individual. The list of documents needed is as follows:
For salaried Professionals
Evidence of residence
Agreement on renting / provision of facilities (not above the age of three months) / passport (any)
Passport / driving license / voter ID (any)
Bank Report for the last 3 months
Last 3 months pay slips
2 photos of passport size
For self-employed persons
Identification evidence; contact evidence; DOB proof
Proof of residency
License agreement / utility bill (not past the age of 3 months) / passport (all). proof of residency.
Evidence of profits (financial reports for the past two years)
Last 6 months Bank declaration
Proof of Office Address
Evidence of ownership of residence or office
Evidence of company sustainability