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June 2, 2023
Personal Loans are unsecured funding marketed by leading banks and NBFC as short terms loans for individual usage and emergency needs, such as spending on holidays or for educational and medical expenses.
Financers issue Loan amounts starting from ₹ 1 Lakh to 35 Lakhs to salaried persons without a guarantee or security therefore, timely repayment is a priority. Processing Personal Loans is done speedily so that applicants receive the funds within the shortest time frame.
All leading Banks, HDFC Bank, ICICI Bank, AXIS Bank, and YES Bank track growth, verify companies’ financials and prospects and enable a company list to facilitate the funding of Personal Loans.
Individuals with a secure income can manage their obligations successfully therefore, banks look to fund employees of profitable entities with a progressive growth track.
Banks and NBFCs publish an individual list compiled per the Lender’s policies and preferred segments. Most lenders approve loans for applicants employed with companies that feature in their approved list.
Banks construct an approved list of organizations that include private and public limited companies, reputed as the top Employers to work for. Significant inclusions in company lists are from the following sources.
Premier organizations in this list are the ET 500 companies at the end of every year, the ‘Economic Times, a leading business-based daily publication, releases a list of investable companies with good fundamentals. The list also includes similar companies listed as Fortune India 500, compiled based on the latest sales and gross revenue figures.
Companies listed with India’s two major stock exchanges- BSE, the Bombay stock exchange, and NSE- the National stock exchange of India- feature prominently in the Approved Company Lists of Banks. Entities with rising share prices are listed as Category A or Super A other companies are classified as per their performance. Banks closely monitor share values and upgrade or negate companies accordingly.
A Government job ensures stability and a regular income. Therefore, candidates employed in the Government sector are an eligible segment for a Personal Loan. Central and State Government entities feature in the company list for most Banks, with bureaucrats, high ranking government officials in preferred categories.
Banks List Public Ltd, and Private Ltd Companies registered with MCA having a vintage of 5 years and above, with an increasing turnover and profitability Banks, Airlines, Hotels, and corporates with a multinational relationship with high turnovers and a significant workforce feature in the company category list.
Banks encourage applications from listed companies with a salary account in the concerned Bank as details of the financial history are easily accessible.
The hierarchy of the company governs the terms awarded to a customer. The grading remains the same though Banks may name categories individually. For example, a super A company with HDFC Bank is known as the Diamond category with ICICI. Major categorization is as follows.
· Category A or Super A
· Category B
· Category C
· Category D
Banks have individual policies for providing loan terms per the Employer details though the thumb rule remains the same. Given below are details of Personal Loan offerings for companies as per their grading.
Category A/ Super A, or the Top Category/ premier Category, included in this section are elite companies employees of companies included in this Category are a primary focus for marketing a Personal Loan. Therefore, the lowest interest rate with beneficial terms attracts applicants from this Category.
Companies listed in this Category hire the cream from top institutes like IIT and IIM, and the yearly package offered is handsome. Therefore, Banks waive the 3-month vintage rule required to process a Personal Loan.
The highest multiplier is applied to calculate the eligibility for the loan amount to be issued. The requirement for a CIBIL Score is optional, and Banks waive stringent procedures to speedily process a Personal Loan request from a client working with a Top Company.
Category B Companies come a close second in preference. Banks process a request as per the norms and criteria. The stability and continuity of the job is the critical factor. Most established vintage companies feature in this Category.
The multiplier for the Personal Loan amount is lower than that of Category A inclusions. In addition, a review of the CIBIL Score and history physical verification is conducted at the office and residence of the client to confirm contact ability.
Applications from Employees listed with Categories C and D are processed conservatively. The monthly income required by most Banks for this Category is above ₹40 k per month compared to ₹ 25k for a Category A applicant. An application from an employee of this category is viewed on its own strength, a healthy CIBIL Score above 720 basis points and above is required.
There is also a restriction on the maximum loan amount issued.
Government and Public sector entities form a distinct category for funding Personal Loans. A Government employee has the security of an assured income, so applicants are eligible for a maximum loan amount with a discounted interest rate and attractive terms High-ranking bureaucrats get exalted packages, so they are treated similarly to Super A category applicants. The HDFC Bank Processes Applications from all strata of applicants from the Government sector, including blue-collar personnel.
The YES Bank and ICICI Bank Provide Personal loans to seekers working with Non-Listed Companies the criteria applied are as per the norms of the particular Bank. The basic income required by YES Bank to process applications from individuals is a salary of ₹25k and above. In contrast, the compensation needed in ICICI Bank for a non-listed company aspirant is a minimum of ₹ 40k.
A CIBIL Score of 700 points or above is mandatory and customers having a self-owned or living in a family-owned residence are preferred. The loan amount appended depends on the eligibility calculations of the Bank and the customer’s current behaviour with credit.
Banks construct their list of approved Companies per individual policies and targeted profiles. As a result, the terms offered may vary from Bank to Bank for example, an applicant working in the Delhi police can get the best deal from Axis Bank, which holds salaried accounts.
Before applying for a Personal Loan, an applicant should check if the current employer features in the Lender’s approved list to avoid a delay or denial.
Contact our Loan experts at Yourloanadvisors for immediate know-how about your company category. With years of experience, our advisors will help identify the Lender which serves your needs best.
An employee lives a lifestyle affordable as per the salary given, assured that the compensation is received at the end of the month, so they can honour the obligations and pay the EMI on time for all credits taken.
That is precisely what the Banks look for the loan amount given repaid as per schedule. Hence an employer becomes all-important for the Financer when issuing a Personal Loan.
How to check a listed company for a personal loan?
Major Banks publish a list of approved companies; employees of these companies are eligible to apply for a personal loan and a credit card. These include:
To check if your employer is included in the approved list of banks, you can go to the website of the Bank or contact us at www.yourloanadvisors.com. Our advisors will check the details as to which Banks' approved company category list your company features in.
How do you know if your company is listed in a bank?
It is advisable to check if your company is on the approved list to confirm your personal loan eligibility and avoid delays and rejections. Your company will feature in the approved company category list based on the following criteria:
How to check the company category in HDFC Bank?
HDFC Bank is the leading provider of personal loans. To meet the eligibility criteria for a personal loan from HDFC Bank, your company must be listed in the HDFC Bank-approved company category list. The companies are categorized with privileges as follows.
Are employees of private limited companies eligible for a personal loan?
A private limited company is a privately owned entity by a few shareholders; it is not publicly listed on the stock exchange. Multinational companies having subsidiaries in India also come under the private limited companies.
A private limited company is listed in the HDFC Bank company category list and the ICICI Bank approved list of companies if it fulfils the required eligibility criteria. The category under which the company is listed depends on the
What are cat C companies in personal loans?
If your company is included in category C of the approved company list of the Bank, it denotes the following:
What are cat A companies?
A company listed as category A in the bank's approved list benefits from being classified in the preferred category for issuing credit cards and personal loans. Applicants employed in a Cat A company of the HDFC Bank company category list are offered the following privileges:
What is the category of ICICI Bank?
The ICICI Bank company category list for personal loans and credit cards includes entities that have been verified and approved as strong organisations. It comprises the top companies listed on the stock exchange, those featured in the Economic Times, government organisations, and public limited companies. Also included are well-performing firms with increased turnover.
Companies are listed as:
ICICI Bank allows sourcing from open market companies not featured in any category if the applicant's salary exceeds 1 lakh.
Which companies are included in the negative list of the Bank?
Banks also maintain a negative company list. If a company is on this list, the application for a credit card or personal loan will not be approved. Banks regularly review this list, and companies are added or removed based on the bank's criteria. The following companies are included in this list:
For example, travel and hospitality companies during COVID-19 were added to the “Do not source” lists of lenders as companies suffered huge losses due to restrictions in functionality.
