alexa
Home Articles What is the Criteria for Obtaining a Personal Loan?

What is the Criteria for Obtaining a Personal Loan?

IndianMoney.com Research Team | Updated On Saturday, May 05,2018, 04:27 PM
5.0 / 5 based on 1 User Reviews

What is the Criteria for Obtaining a Personal Loan?

 

Who can apply

These loans are generally availed by salaried individuals; self employed professionals such as doctors, engineers, chartered accountants, contractors and self employed non professionals. The tenure of a personal loan can be around 1-7 years.

Age Criteria

The minimum age for obtaining a personal loan is 21 years and the maximum age is around 58-60 years for a salaried employee. For a self employed individual the maximum age can extend up to 65 years.

Minimum salary criteria

The minimum monthly income necessary to avail these loans from banks is in the range of INR 10000-15000..Some banks have a higher income criteria in the range of INR 20000-25000.The minimum monthly income is similar for both salaried and the self employed. Higher the income more easily is the loan sanctioned.

Joint Application

A salaried employee is sanctioned an amount in the range of INR 30000-INR 20 Lakhs. For a self employed individual the loan amount sanctioned is around INR 1 Lakh-INR 20 Lakhs. Loans will be disbursed in a time frame of 4-7 days. These loans can be jointly availed with one’s spouse and a higher quantum of loan can be availed.

Employment Status

A salaried employee should hold his current job for a period of 1-2 years. Certain banks ask for a confirmed employee status. The self employed individual should be in the current business for a minimum time frame of 1-2 years.

Credit Rating (CIBIL Score)

Credit score (Cibil rating) is very important while availing a personal loan since this is an unsecured loan. Cibil score measured on a scale ranging from 300-900.A score of 750 and above is regarded as good enough for the loan to get sanctioned. Past credit history plays a very important role in getting the personal loan sanctioned.

Residence Status

A stable life and a secure income are a must to avail a personal loan. If one is married he is considered more stable than a bachelor and if one stays in his own house rather than a rented house a personal loan is easily availed. The borrower needs to be in his or her current residence for at least a year. Certain banks specify a requirement of 2 years.

Note

It is best to avail a personal loan from the bank where one has an account The bank where the account is maintained knows one’s financial status and this helps in rapid processing of the loan. Lower interest rates and processing fees can be obtained on the personal loan after negotiations at the bank where one has an account.

Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Get It now!