A handy Guide to Personal Loan Eligibility Criteria for top Banks in INDIA

Whether you are a salaried employee or a part-time worker, you can find several Personal Loan offers online these days. Consequently, you can find a deal matching with your circumstances and exactly as per your needs. For, not all loans are made equal and which is why you need to make sure to check your eligibility before you apply for a bank loan. You must compare the available offers to make an informed decision.

Personal Loan – Eligibility Criteria

All banks and NBFCs while marketing their products claim that their Personal Loan Eligibility criteria are hassle-free with a minimal documentation process and a quick disbursement procedure. While this stands true for the most institutions, you must study the chosen institution’s eligibility criterion in detail.

Some of the common Eligibility Criteria

You must furnish the following documents for fulfilling KYC, at the time of applying for a Personal Loan.

Proof of Identity – Pan Card, Passport, Voter’s ID, or Driving License as Identity Proof.

Proof of Residence – Passport, Ration Card, Utility Bills – Electricity/Telephone Bill, Gas Bill (not more than 3 months old), or Bank Statement.

Additionally, in order to avail of a Personal Loan, you need to have a regular source of income – whether you are a salaried person or a self-employed individual.

In case you are a Salaried Person

You must provide your salary slip for 3 months, form 16 and 6-months’ bank statement along with 2 Passport Size photographs.

Similarly, in case you’re self-employed, you will be required to submit audited financials for the last two/ three years / IT returns as proof of income, proof of office ownership, along with 6 months’ bank statement.

Your credit history will also be analysed in detail, and in most cases, you will need to have a CIBIL Score above 650 in order to be eligible for a Personal Loan.

Let’s take a look at the eligibility requirements for two popular banks – HDFC and ICICI Bank.

Personal Loan Eligibility Criteria for HDFC Bank

HDFC bank promises a quick, competitive, and transparent loan disbursement allowing you to avail of a loan in just 4 hours – which can be customised to suit your diverse needs. You can avail an HDFC Personal Loan for up to 40 Lakh.

In order to qualify for HDFC Personal Loan Eligibility, you must be working with a private limited company or public sector undertaking – including Central, State, and local bodies.

Further, the following documents will be required for processing your Personal Loan including identity proof (either a copy of Passport/ Voter’s ID card/ Driving license/ Aadhaar), Address proof (either a copy of Passport/ Voter’s ID card/ Driving license/ Aadhaar), Bank statement of previous 3 months (passbook for the previous 6 months), along with your latest salary slip/ current dated salary certificate with the latest Form 16.

You will be required to have a certain amount of work experience spanning at least 2 years, wherein 1 year of service must be with the current employer.

The minimum monthly income must be at least Rs. 15,000 (Rs.20000 in metropolitan cities such as Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Cochin)

The interest rate would range from 15.50 percent to 21.50 percent for salaried employees, subject to eligibility based on credit history and loan requirement.

Self-employed professionals will need additional documents to reflect continuity in business and steady income. They are required to provide recent bank statements, audited financials, tax returns and office lease agreement. Additional documents might also be required depending on the type of profession, practice, and organizational set-up.

The age needs to fall within the age group – 21 to 60 Years.

ICICI Bank – Personal Loan Eligibility Criteria

ICICI bank offers Personal Loans up to Rs. 20 Lakh for various financial requirements.

For Salaried Individuals

You need to have a minimum monthly income of Rs. 17,500 (Rs. 25000 in case you’re residing in Mumbai and Delhi; and Rs.20000 in case you’re residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata).

The minimum salary requirement may vary depending on your profile and factors such as type of employer, previous relationship with ICICI Bank, etc.

You are required to have work experience spanning at least 2 years while having spent at least 1 year at your current residence.

In order to qualify for ICICI Personal Loan Eligibility, your age needs to falls within the age group of 23 to 58 Years.

For Self Employed Individuals

In order to be eligible, your age needs to fall within the age group – 28 to 65 Years (25 years in case you’re a doctor).

You should have a minimum turnover of Rs. 40 Lakh in case you’re a non-professional and Rs. 15 Lakh in case you’re a professional – as per the audited financials.

In case you’re running a proprietary firm or in case you’re a self-employed professional, the minimum profit after tax should be Rs. 2 Lakh. For non-professionals the minimum profit limit is capped at 1 Lakh. The profit figures should be backed by audited financials.

Your current business should be operational for at least 5 years and for 3 years in the case you’re a doctor.

You should also ideally have an existing relationship with ICICI Bank – a minimum of 1-year liability relationship (Current or Savings Account) or alternatively, an asset relationship (loan) either currently operational or closed in the previous 36 months.

The effective interest rate may range from 11.25 percent to 17.99 percent – depending on your credit history and loan requirement.

Hope, now you are better prepared to apply for Personal Loan online.