personal loan: Are you eligible for a personal loan?
According to the
website, personal loan eligibility depends on two main factors, repayment capacity and CIBIL score. Let’s look at them:
Your ability to repay the loan over the desired term will be assessed by your bank. It will take into account things like your credit rating, unpaid debts, current income, and future prospects for employment over your desired tenure. You will be qualified for larger loan amounts if you are financially stable and have a good credit score.
The CIBIL score measures someone’s creditworthiness, or their capacity to pay back loans. A CIBIL credit score of 750 or higher is regarded as good.
Will interest calculation on a daily/monthly reducing balance be beneficial?
According to the
website FAQ on personal loan, below are the points why it will be beneficial:
On an annual reducing balance method, you will continue to pay interest on amounts you repay during the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year.
In the case of the daily/ monthly reducing balance, which is the methodology we employ, your interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments. This in essence lowers your effective rate of interest significantly.
Eligibility of personal loan
- Individuals with salary accounts with SBI.
- A monthly income of Rs. 15000/ is required.
- EMI/NMI Ratio less than 50%.
- Employees working with
- Central/ state/ quasi government,
- Central PSUS and profit making state PSUS,
- Educational institutions of national repute,
- Selected corporates with or without relationship with the bank.
In HDFC Bank
The following people are eligible to apply for a personal loan:
- Employees of private limited companies, employees from public sector undertakings, including central, state and local bodies
- Individuals between 21 and 60 years of age
- Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer
- Those who earn a minimum of 25,000 net income per month.
- Eligibility criteria for salaried individuals:
- Age: 23 years to 58 years
- Monthly Income: Rs 30,000 and above (The minimum salary requirement will differ depending on the profile of the customer.)
- Work Experience: 2 years
- Years in current residence: 1 year.