Applying for a personal loan is now quick and simple, but it cannot be assumed that you will be approved for the loan amount you need. Enumerated below are the key features and know-how on Personal Loan eligibility that have been explained for your assistance.

A personal loan for salaried individuals has become the most popular choice for funding lifestyle expenses and emergencies. The ease of online applications and quick processing has made personal loans more accessible. A personal loan is issued based on the applicant’s eligibility. The primary considerations for personal loan eligibility are

Applicant’s Income
Monthly salary credited to the bank account
CIBIL score
Existing liabilities (debt, credit card dues, etc)
Employer’s category as per the HDFC Bank-approved company list for personal loans.

Banks and NBFCs provide personal loans ranging from 1 lakh to ₹₹ lakhs. Loan amounts are determined by the applicant’s profile and the lender’s policies. Given below is an illustration of the minimum and Maximum Loan amounts offered by Banks and NBFCs.

Personal Loan Eligibility Calculator

Net Monthly Income

₹ 100000

10k5L

Expenses (₹) Including other EMIs

₹ 40000

05L

Date of Birth

How to use Eligibility Calculator?

You are not eligible due to age criteria (21-60 years).

You are eligible for up to

₹0

What is the income required for personal loan eligibility?

The minimum income threshold required by banks and NBFCs varies by lender and applicant location. The income determines the loan amount the applicant qualifies for, the interest rate applied, and the relevant FOIR.

Applicants with a Salary of ₹ 20k+ are eligible from Tier 2 and Tier 3 cities, as well as INCRED Finance.
Applicants with a Salary of ₹ 25k + can apply to YES Bank, select NBFCs, SMFG Finance, and Poonawala Finance.
Applicants with a salary of ₹ 30k+ are eligible to apply for a personal loan with HDFC Bank and AXIS Bank.
ICICI Bank requires a minimum salary transfer of ₹ 40k+ to process a personal loan.

SALARY	BANK/NBFC	LOAN AMOUNT	INTEREST RATE
> ₹ 20,000	INCRED	Up to ₹ 3 Lakhs	25% -30%
₹ 25000 +	YES Bank, SMFG Finance, NBFCs	Up to ₹ 4 Lakhs	15%- 25%
₹ 30,000 +	HDFC Bank, AXIS Bank, KOTAK Bank	Up to ₹ 7 Lakhs	12% – 14%
₹ 40,000 +	All Major Banks	Up to ₹ 10 Lakhs	10% – 12%

What are the exceptions made by financiers for salary credits?

AXIS Bank accepts salary credits of ₹20k or more for an AXIS Bank salary account holder.
Applicants employed with companies that do not appear on ICICI Bank’s approved company list should have a regular salary credit of ₹ 1 lakh or more.

How much EMI am I eligible to pay?

Banks consider your income and expenses to determine your EMI, helping you feel more in control of your loan options. Applicants can calculate their EMI using the EMI Calculator before applying for a personal loan to get an idea of the amount they can comfortably pay towards the monthly instalment. Banks and NBFCs most widely use the FOIR method to confirm an applicant’s eligibility to pay EMI.

The role of the FOIR (Fixed obligations versus Income)

The FOIR determines the maximum monthly EMI the applicant can afford. The fixed obligations include fixed monthly costs, existing loan EMIS, and credit card dues, all of which are deducted from the income.

The formula used to calculate the FOIR.

Total Monthly Obligations/ Net monthly income * 100 = FOIR.

Example:

EMI for Loan and Credit card obligations = ₹ 30,000/-
Net Salary = ₹ 60,000/-
FOIR = 0.5% * 100 = 50%

The above is the general rule for further processing the FOIR application; salaries have been segmented as follows.

SALARY	FOIR	Maximum EMI Allowed	Tenure
₹ 20,000 to ₹ 40,000	40% to 50%	₹ 8000/- to ₹ 10.000/-	12 months to 60 months
₹ 40,000 to ₹ 75,000	50% to 60%	₹ 20,000/- to ₹ 40,000/-	12 months to 60 months
₹ 75000+	70%	₹ 45000/-+	12 months to 72 months

Key features of the FOIR include

High-income applicants have higher disposable income after accounting for monthly expenses and are thus allotted a FOIR of 70% to 75% of their monthly income.
Companies included in the upper tier of HDFC Bank’s company category list, such as Elite Super A and Cat A companies, are given additional leverage.
Companies listed as Category C and D are allotted lower multipliers and are eligible for lower personal loan amounts, which are capped.

Suggested Read: How to reduce current EMI ?

How does employment influence the Personal Loan eligibility?

The stability and reputation of your employer significantly influence your Loan eligibility, as banks prefer to lend to employees of established, profitable companies with consistent employment records.

Profile of Employer

Lenders look to fund employees of established companies with increased profitability, infrastructure, and employment. Employees of companies that are Limited, Private Limited, PSUs, and Government organisations are eligible for personal loans from most banks and NBFCs. In contrast, employees of proprietorship and partnership firms are not.

Company Category

Applicants whose employer is listed in the Approved Company Category list of Banks are eligible to apply for a personal loan, such as:

HDFC Bank Company Category List.
ICICI Bank List of Approved Companies.
AXIS Bank Approved Company List.

Companies that feature in the upper tier of the list, such as CAT A or Super A companies in the HDFC Bank Company Category List, are allotted higher multipliers for calculating eligibility for Personal Loan amounts than CAT C or CAT D companies.

AXIS Bank and ICICI Bank also apply a higher FOIR of up to 70% for the Loan amount eligibility for Personal Loans.

Vintage of Employment

A work experience of 12 months or more is required to be eligible to apply for a Personal Loan. New appointees are issued restricted loan amounts, while Employees with vintage work experience are considered stable and secure and can be awarded a Personal Loan of ₹10 lakhs or more.

Salary proof

With the onset of Digital banking systems, banks now require a direct salary transfer to the salary account regularly for a period of 3 months or more to apply for a personal loan. Proof in the form of a Bank statement reflecting salary credits is required when applying.

Key Features of the Tenure affecting the Personal Loan eligibility

The repayment term for a Personal loan or Tenure ranges from 12 to 72 months.

Longer Tenure

A longer tenure can give you a sense of control, increase your eligibility, and make monthly payments more manageable. Applicants employed with the listed companies are issued an extended tenure of up to 84 months.

Shorter tenure

Applicants who wish to repay their Personal Loan sooner can opt for a shorter tenure, thereby saving on interest. The condition is that the EMI does not exceed the Bank’s debt-to-income ratio limit.

Illustration of the EMI calculation based on the tenure

The EMI payable by the applicant depends on the repayment tenure. If the applicant requests a shorter tenure, the eligible loan amount decreases. If the EMI exceeds the FOIR, the tenure can be extended or the loan amount reduced, for example:

(Hypothetical customer details)

Customer name: Archana Singh.
Age: 35 years
Employer: TELEPERFORMANCE GLOBAL SERVICES PRIVATE LIMITED (Listed as CAT B in the HDFC Bank Company Category List)
Marital Status: Married
Salary Account: HDFC Bank.

Net Salary	₹ 60,000/-
FOIR Applicable 55%	₹ 35000/-
Current Obligations
Existing Home Loan EMI	₹ 20,000/-
Credit card outstanding	₹ 50,000/-
5% of outstanding credit card balances are treated as obligations.
Current Obligations total	₹ 22500/-
Eligible to pay an EMI of	₹ 12500/-

Eligibility Calculation with varied tenure

(Interest Rate applicable at a monthly reducing balance)

Tenure	Interest Rate	EMI	Maximum Loan amount
60 months	10.50%	₹ 12,896.34	₹ 6,00,000
48 months	10.50%	₹ 12,801.69	₹ 5,00,000

Existing Liabilities

The customer’s existing obligations or liabilities are noted by retrieving the CIBIL report and reviewing the Bank Statement. The personal loan amount approved is finalised after deducting the obligations.
The EMI paid for the existing loans. If the customer is a co-applicant on a loan, banks will consider 50% of the EMI as the customer’s obligation. Certain NBFCs may not include the obligations as a co-applicant for calculating the Personal Loan eligibility.
If the App’s (Application loans) obligations exceed the Lender’s limits, the Lender will declare the customer overleveraged and decline the personal loan request.
All credit dues, whether as a primary or an add-on cardholder, form part of the obligations. 5% of the credit card dues are included in the liabilities. If the pending card dues reflected in CIBIL are over 5 times the monthly salary, the personal loan request is declined.
Salaried applicants nearing retirement age (62) are offered a limited tenure, which restricts their eligibility for a higher loan amount. Younger applicants working in listed companies are allotted longer tenures and higher Personal Loan amounts.
If the applicant resides in a self-owned or family home, the applicant’s personal loan eligibility will increase in the absence of a rent liability.

CIBIL

The trust factor for an unsecured Personal Loan increases with a CIBIL score of 750 or above. This can boost your confidence, as banks feel more assured in offering higher loan amounts for maximum tenures.
Customers who are first-time loan seekers without a CIBIL score are allotted an apprehensive loan amount. A CIBIL score is required for Customers aged 35 or older to be eligible for a personal loan.
If your CIBIL score is below 650 points, it is advisable to improve your CIBIL score before applying for a Personal loan to avoid rejections and further damage to your CIBIL score.

How to improve your Eligibility for a Personal Loan

Consider the following factors to increase your eligibility;

Maintain a CIBIL score of 750+ and repay all your Credit Card dues.
Pay back and close any pending loans and those nearing the end of their tenure.
Include all sources of income and the income of an earning spouse or parent.
Apply to the Bank with a salary account or a successful credit repayment record.
Do not make multiple inquiries at once, as you may be branded as credit-hungry.
Consolidate multiple loans via a balance transfer to improve FOIR.

Check out a Live example of increasing eligibility with the assistance of www.yourloanadvisors.com

Nitin Khanna (Name Changed for privacy) contacted us via our website for assistance, as he urgently needed funds of ₹ 400000/- lakhs for his wedding celebrations. He is employed with a company listed as CAT B in the HDFC Bank company Category list, with a salary of ₹ 3500/- transferred to ICICI Bank.

His personal loan request to ICICI Bank was declined due to overleveraging. Given below are his financial details:

Income	₹ 35000/-
FOIR applicable 50%	17500/-
Home Loan EMI	13000/-
Eligible to pay EMI of	4500/-

He was considered overleveraged due to his home-loan EMI obligations.
We further enquired about the status of his co-applicant on the home loan.
He revealed his father was a co-applicant who was earning a salary of ₹ 50,000/-
As his father was an earning co-applicant, we asked the Bank to reconsider his request and submitted his father’s documentation as proof.
As per policy, banks treat 50% of the home loan EMI as an obligation if the applicant has a regular income.

His eligibility calculations with 50% of the home loan EMI obligated were now as follows;

Income	₹ 35000/-
FOIR applicable 50%	17500/-
Home Loan EMI	6500/-
Eligible to pay EMI of	11000/-

Thus, his request was reconsidered and sanctioned for:

Loan Amount Required	₹ 400000/-
EMI for 48 months	10338.21

Usage of the EMI Calculator for Personal Loan Eligibility

The EMI calculator is a useful tool that helps you calculate the EMI for the loan amount you require. Key inputs include:

The Principal Loan amount required.
The interest rate.
The tenure.

Thus, you can confirm the EMI to be paid for the personal loan amount required before applying for a Personal Loan. This will help you check whether the EMI is affordable, and if the EMI is too steep to pay along with the other existing credit and expenses, you have an option to:

To ask for an extended tenure.
Apply for a lower Personal Loan amount.
Check with other lenders for a lower interest rate.
Consolidate your existing debt.

Frequently Asked Questions


		
		
					Will my current debt status affect my eligibility for a personal loan?
					
						Your eligibility for a personal loan will be influenced by the existing debt, which includes,

 	The EMI paid for existing loans secured and Unsecured.
 	Unpaid credit card dues. 5% of the due amount is included in the obligations.
 	Pending Payments, reflected in the Bank statement.

The existing FOIR (Fixed Obligations versus income ratio):

 	Below 35%: applicant is eligible for the maximum loan amount as per the income.
 	35% to 50%: The Applicant has the capacity to manage an additional EMI.
 	50% to 75%: The Loan amount is issued as per the company category and CIBIL score.

Check CIBIL Score and History:
Most Lenders require a CIBIL score of 750 or higher to be eligible for a personal loan if your CIBIL score is below the required benchmark.

 	Check your CIBIL history for any unpaid dues.
 	Pending accounts or forgotten accounts.
 	Any wrong entry in your record.

Confirm Personal Loan Eligibility before applying:
Calculate the loan amount you are eligible for by using the eligibility calculator before applying for a personal loan. If you are not eligible for the loan amount required, increase eligibility by:

 	Clearing credit card dues.
 	Closing any loans nearing the tenure end.
 	Increase eligibility by consolidating loans via a Personal Loan Balance Transfer.

					
				

					Will my personal loan eligibility differ if I have a bank account with the bank I am applying to?
					
						Personal loan eligibility for salaried employees will differ depending on whether you have an account with the Bank, and even more so if you have a salary account. The advantages of having a salary account with the Bank include;
Quick Processing of your Personal Loan request due to:

 	Minimal documentation requirements.
 	Available details of your incoming and monthly expenditures.
 	The updated KYC (Know Your Customer) process.

Special offers to salary account holders:

 	A Lower rate of interest, with beneficial terms.
 	Discounts, including waiver of the processing fees.
 	Preapproved offers for instant funds transfer.
 	Increased loan amounts with an extended tenure

Finances are clearly visible, to reassure the Bank:

 	The monthly salary credits.
 	Other sources of Income.
 	The existing EMI for loans.
 	The average Bank Balance is maintained monthly.

On the other hand, the eligibility may be hampered due to:

 	Low balance maintained in the account.
 	A cheque return or bounce in the last 3 months.
 	Irregular salary credits.
 	Investments in mutual funds or gaming Apps.

					
				

					How does the age of the applicant affect personal loan eligibility?
					
						The eligible age, as per the Standard practices of Banks, is 21 years, and the Personal Loan eligibility for salaried applicants for repaying the EMI is 58 to 60 years. The applicant's age has a significant bearing on the eligibility for a Personal Loan.
Age 21 years and above:
Though a customer is eligible for a personal loan, most Lenders require 1-2 years of job experience; the default age is 23 years. Such applicants are first-time credit seekers and may not have a CIBIL history. A personal loan is unsecured; therefore, eligibility for a personal loan is affected as follows:

 	Apprehensive amounts are offered to younger applicants as they do not have a length of employment.
 	The absence of a CIBIL score and a limited credit history does not give the Lender confidence in creditworthiness.
 	If the applicant is a bachelor living in rented accommodation, banks are concerned about their further contactability.
 	Younger age applicants must work on their Credit score and CIBIL history to further increase their personal loan eligibility.

Middle-Aged Applicants above 30 years of Age:
these applicants now have the requisite employment experience and stability for Loan eligibility for Personal loan. Applicants in this age group are considered to be in their prime, and the Personal Loan eligibility features for this age group are:

 	The Applicant must have a CIBIL score of 750+ with an on-time repayment track in the CIBIL history.
 	Lenders may not issue personal loans to applicants aged 30 or older without a CIBIL score.
 	Maximum loan amounts are issued to this age group with an extended repayment tenure of 72 months.
 	The existing debts of the applicant should not exceed the applicable FOIR.

Senior Applicants above the age of 50 years:
This is the age when individuals are at the peak of their profession and draw handsome salaries. They have a self-owned residence and a wealth of experience.

 	Customers aged 50 or older have established profiles and consolidated savings.
 	The CIBIL history of the applicant will be reviewed for successful repaid loan accounts or any defaults.
 	Personal loan eligibility is calculated based on monthly income and existing debts.
 	The repayment tenure issued is a maximum of 48 months with a view to the retirement age.

Applicants who are nearing 56 years are granted a personal loan for a shorter tenure till the retirement age of 58 or 60 years, or even post-retirement, HDFC Bank offers a personal loan to applicants who can provide proof of a regular pension.
					
				

					Is 700 a bad CIBIL score for the application of a personal loan?
					
						Although a CIBIL score of 750 or higher is the benchmark for most banks, a score of 700 is considered average. Some banks accept applications for a Personal loan with a CIBIL score of 700 points. Key points to note are the following:

 	Apply to the Bank with which you have a favourable credit record.
 	If you are running an existing personal loan with a timely repayment track apply for a personal loan Top-Up.
 	Do not apply to the lender that has a CIBIL score cut-off for Personal loan Eligibility.
 	You can be eligible for a personal loan from an NBFC if your score is below 750 points.

Check the reason for the downgrade in your score before applying; if it is any of the following, you can easily improve your score.
Non-use of credit in recent times:
: If you have not availed any credit recently and have not activated your credit cards, your score could be stagnant. This can be easily remedied by actively using your credit card for daily purchases.
Credit card overdue:
If you are unable to pay the total amount due on your credit cards, do not neglect the minimum payment of 5% on the due date. Timely payment of the minimum due will not affect your credit score.
Close pending credit accounts:
If any balance remains on overlooked Loans or credit cards, make the payment and obtain a closure letter. A successfully closed credit account will help boost a credit score.

Banks send CIBIL updates on credit usage every fortnight. It might be worth the wait if you can boost your score and eligibility before applying for a Personal Loan. For further assistance, contact our expert advisors at www.yourloanadvisors.com to further guide you about your Personal Loan eligibility with a 700 points CIBIL score.
					
				

					How much personal loan can I get on an INR 60,000 salary in HDFC?
					
						The eligibility for an HDFC Bank Personal Loan for an applicant with a salary of ₹ 60,000/- is based on the following:

The applicable multiplier: A multiplier is applied according to HDFC Bank's Company Category list. The multiplier applicable for an income of ₹ 60,000/-




Company Category
Multiplier


Category A
30


Category B
25


Category C
20


Category D
12




The HDFC Bank Eligibility FOIR criteria:




Company Category
Net Income
FOIR
Net Income
FOIR


Category A
₹ 50000/-+
70%
₹ 30000/-+
50%


Category B
₹ 50000/-+
70%
₹ 30000/-+
50%


Category C
₹ 50000/-+
60%
₹ 30000/-+
50%


Category D
₹ 50000/-+
50%
₹ 30000/-+
50%




The Current Credit Status includes all EMI payments currently made on loans and Credit Card Dues.
Hypothetical example for the Personal Loan Eligibility in HDFC Bank.
HDFC Bank Eligibility Criteria:




Profile details of the Applicant.


Current Debts


Company Category
CAT B

EMI for Home Loan


Net Salary
₹ 60000/-

Credit Card Dues


FOIR Applicable

70%
(5% taken as the obligation)


Multiplier

30
Total Obligations




Eligibility for the Personal Loan amount from HDFC Bank:




Eligibility Calculations

Eligibility as per the applicable tenure.


Eligible to pay EMI up to
₹ 42000/-
Repayment Tenure
24 months


Existing debts
17000/-
Eligible for a Max loan Amount of
₹ 7,20,000


Current eligibility for EMI
₹ 30000/-






Key points to note in the above illustration:

 	The HDFC Bank has a comprehensive set of criteria for calculating the Personal Loan Eligibility.
 	The FOIR is calculated based on the Company Category and Income.
 	The Maximum Loan amount issued is according to the applicable multiplier.
 	The Obligations are deducted from the eligible FOIR.
 	The Loan amount finally depends on the EMI and tenure.

					
				

					What documents are required for personal loan eligibility?
					
						An unsecured personal loan is issued without collateral. Therefore, the Income and KYC (Know Your Customer) documents form the basis for calculating the risks involved and for the RBI (Reserve Bank of India) guidelines for issuing credit. Documents required for loan eligibility for a personal loan are standard across lenders, though variations may depend on the applicant's policy and profile. To process a Personal Loan request, applicants must complete the application form with personal and professional information.
As Income Documents:
Salary Slips for the past 3 months, with the following details:

 	Customer Name/Designation/ Company Name/ Date of Joining.
 	The month for which the salary is credited, with deductions, and the net amount.
 	Incentives are not included in the regular salary credits.

Bank Statement of the salary account in a PDF format.

 	With the Customer Name and account details.
 	Salary Credits transferred by ECS monthly.
 	The net amount must match the salary slip format.

KYC Documents:
Aadhaar Card as Identity and Address proof.

 	The Aadhaar card must be clear and valid.
 	The address must be the current residence.

PAN Card.

 	As a signature and age proof.
 	The signature must match the customer's self-attestation signature.
 	The Date of birth on the PAN card is accepted as the applicant's designated Age.

Additional Documentation Criteria:

 	The customer's credentials in the documents must be an exact match.
 	All documents submitted must be clear and valid.
 	The applicant must have the originals at hand for verification.
 	Additional documents may be required if there are discrepancies.

					
				

					What are the Factors Affecting Personal Loan Eligibility?
					
						Primary factors influencing Personal Loan Eligibility requirements across Banks and NBFCs include:
Age Requirements:
21 to 60 years of age, or until documented retirement age.
Employment:
Applicants employed with Limited, Private Limited, Government Companies, and PSUs are eligible to apply for a personal loan. Employees of Top Companies included in the Approved Company Category List are preferred applicants.
Stability:
A continuous job experience of 12 months or more is mandatory to apply for a Personal Loan. If you have changed jobs recently, you must submit proof of your previous employment; a break in the last 3 months is not acceptable.
CIBIL Score:
Your CIBIL score and history are viewed during the personal loan process. Much weight is given to prior credit history and the successful repayment of loans and credit card balances. Your CIBIL score must meet the Benchmark required.
Existing Liabilities:
For salaried employees, banks consider the total credit taken across lenders, including existing personal loans, home loans, auto loans, and credit card spending, when assessing personal loan eligibility.
					
				

					How can I check my personal loan eligibility?
					
						You can check your eligibility for a personal loan using the following steps:

 	Check your CIBIL score individually before confirming that you meet the required benchmark and that there are no pending payments.
 	Does your employer appear on the Bank's approved company list? You can check the company category by giving details on https://www.yourloanadvisors.com/personal-loan/hdfc/company-list/.
 	Check the document requirements to confirm you have the documents available to apply for a personal loan.
 	Use the Eligibility calculator to check eligibility for the required loan amount.
 	Confirm the expendable income you have and use the EMI calculator to check if you can afford the additional EMI.
 	If the EMI exceeds the FOIR, the calculations apply for a longer tenure or a balance transfer to reduce debt.
 	Check with us at Your Loan Advisors for any assistance required to fulfil the Personal Loan eligibility requirements.

It is advisable to check your personal loan eligibility and identify the best lender before applying, as applying to multiple lenders can affect your CIBIL score.

What Are the Key Disbursal Documents for a Personal Loan? A Comprehensive Guide.

A personal loan is a fast and flexible funding option for individual needs. Most lenders now process personal loan applications online and complete them within 72 hours.

After a personal loan is approved, the customer is informed of the loan terms. If the customer agrees, the disbursement process begins, and the funds are credited to the customer’s account via ECS (Electronic Clearing Services).

Once the customer is reassured that the loan amount is approved and he will receive the funds, he may overlook the importance of gathering key personal loan documents for future transactions. Customers need to review the lender’s loan documents and note the terms that will affect costs and the overall process. Listed below are the key documents customers must retrieve and have in safekeeping.

The Personal Loan Agreement.

The Personal Loan agreement is a legally binding document for both parties. Upon approval of the personal loan, the customer must accept the terms and sign the agreement before the lender releases the funds.

Banks offer online disbursal systems so that customer can access the Loan Agreement, review the loan terms, and sign it electronically. This helps reduce paperwork and expedite processing.

The Personal Loan agreement includes the following:

Details of both parties.
Self-Attestation, and the signatures of the Lender and Borrower.

Significant terms to be noted in the Agreement include:

The Interest Rate is the cost of funds at which the loan is given.
Processing fees, or the file charges for the loan services.
The Loan tenure is the repayment term for the loan.

The EMI, or monthly instalment, is to be paid and remains fixed for the term.
The foreclosure and part payment clause and charges.
Penalties for delayed payments.

What is the Importance of the Personal Loan Agreement?

Gives the customer transparency for the complete terms under which the loan has been sanctioned.
Enumerates the terms of the loan for future reference, in case the customer wants to repay it before the term ends.
Clarifies the loan costs, rights and responsibilities, mitigates the associated risks involved.

The personal loan agreement is not just an instrument to receive your loan amount; reading the terms carefully will alert you to your obligations and the penalties involved. The lender is also responsible for fulfilling the terms set at disbursement and cannot deviate from them. It is advisable to hold a copy of the agreement for ready reference till the full term of the loan expires.

The Sanction Letter.

The sanction letter is the first formal communication the customer receives regarding the approval of the Personal Loan request. Once the application is processed and a final decision is made, the loan amount and terms are finalised. The sanction letter contains the loan details, and at this stage, the customer can request a review of the loan amount if additional funds are required or if they decide to borrow a lower amount.

What are the Contents of the Sanction letter?

Once the customer accepts the terms of the sanction letter, the Lender will initiate the disbursement or the repatriation of funds. The Sanction letter details the following information:

The Loan account number for further reference.
The Name of the Customer, Address and contact details.
The Personal Loan amount is sanctioned based on the applicant’s eligibility.
The Repayment Tenure for the personal loan is from 12 months to 72 months.
The monthly EMI amount and date to be deducted from the Bank account.

What is the importance of the Sanction Letter?

The sanction letter confirms that the Lender has agreed to approve the personal loan amount.
The terms and conditions of the loan approval are clearly defined in the sanction letter.
The Loan amount approved in the sanction letter will be transferred to your account after deducting the processing fees, insurance charges and the Pre Emi (if applicable).
The sanction letter is valid for 30 days; within this period, the applicant must sign the agreement and initiate the disbursal process.

If the applicant does not disburse the approved loan amount within 30 days, the sanction letter is declared invalid. On expiry of the sanction letter, the applicant will have to reapply and submit the required documents for the loan again. The entire process is reinitiated as if for a new loan. It is beneficial to sign the agreement and initiate disbursal of your personal loan within 30 days, as there is a chance that, if you reapply, you may not be awarded the same terms.

The Amortization schedule.

After your Personal Loan is disbursed, loan repayments take precedence over other payments. The amortisation schedule helps you take a closer look at your loan cost and repayment plan. If you do not receive your amortisation schedule, do make it a point to request it, as it is an invaluable asset that helps you understand the repayment structure.

The amortization schedule details the following:

The Customer details and the loan account number.
The total loan amount credited after deductions are applied.
The interest rate is applied to a monthly reduced Balance.
The tenure is sanctioned for the monthly EMI repayment.
The breakup of each EMI, the principal amount, and the interest factor.

What is the relevance of the Amortization schedule?

With the Amortization schedule at hand, you can easily check the status of your loan.

How many EMI have been paid?
What is the principal amount you have repaid to the Bank?
What is the amount of interest paid to date?
What is the principal amount balance if you are seeking a balance transfer to an external lender or need to foreclose the loan before completing the tenure?

Initially, the interest component of the EMI is larger than the principal amount; as the tenure progresses, the principal and interest components repaid are in equal measure; thereafter, the principal amount forms a major part of the EMI.

If you make a part payment towards the principal amount, the schedule will be adjusted; usually, the Bank will reduce the loan tenure rather than the EMI. You can, thereafter, ask the Bank for a new schedule with the reduced tenure.

The Amortization schedule of your loan is a ready reckoner for your loan’s financial status; having a copy on hand is essential. Checkout the sample illustration below for further understanding:

The Loan amount issued to the customer is ₹500000 Lakhs.
The monthly reducing interest rate is @ 10.50%.
The annual interest rate is 5.78%.
The repayment tenure is 12 months.
The monthly EMI payable is ₹44074.

*LOAN SCHEDULE*
*MONTH*	*EMI*	*INT.*	*PRIN.*	*PRIN. O/S*
0	*0.00*	*0.00*	*0.00*	*500000*
1	*44074.30*	*4375.00*	*39699.30*	*460300.70*
2	*44074.30*	*4027.63*	*40046.67*	*420254.03*
3	*44074.30*	*3677.22*	*40397.08*	*379856.95*
4	*44074.30*	*3323.75*	*40750.55*	*339106.40*
5	*44074.30*	*2967.18*	*41107.12*	*297999.28*
6	*44074.30*	*2607.49*	*41466.81*	*256532.47*
7	*44074.30*	*2244.66*	*41829.64*	*214702.83*
8	*44074.30*	*1878.65*	*42195.65*	*172507.17*
9	*44074.30*	*1509.44*	*42564.86*	*129942.31*
10	*44074.30*	*1137.00*	*42937.31*	*87005.00*
11	*44074.30*	*761.29*	*43313.01*	*43692.00*
12	*44074.30*	*382.30*	*43692.00*	*0.00*

Key Points to note:

The principal outstanding reduces every month with the EMI paid.
The interest is applicable on the reduced principal quotient.
At the halfway mark, the interest quotient reduces.
The Interest rate and EMI remain constant for the entire tenure.
Interest is charged yearly.

Foreclosing on the loan after the midpoint is not practical, as most of the interest has already been paid.

FAQ


		
		
					Will the copies of my Loan disbursal documents be sent to me by email, or will I receive hard copies?
					
						Most lenders have now adopted online methods for communication and document dispatch for convenience and speed. Customers also find it suitable to sign the personal loan agreement online and disburse the loan amount instantly. Only Axis Bank still issues hard copies of the personal loan agreement.
					
				

					Can I cancel my personal loan after the loan agreement has been signed and the loan is disbursed?
					
						Once your Personal Loan Agreement is signed and the terms are accepted, the disbursement process begins. Customers can self-disburse the loan amount via the link sent by the Bank.  After the disbursal process, the funds are credited to the customer's account via ECS (Electronic Clearing Services). If the applicant has made alternate arrangements and does not want to avail the funding, at this stage, the following are to be noted:

 	The customer has up to 15 days to initiate the loan cancellation, known as the cooling period. 
 	The request to cancel the loan must be communicated to the bank's customer care immediately, in writing. 
 	The customer will be responsible for paying the cancellation charges, and any deducted processing fees will not be refunded. 
 	If the cooling period has expired, the customer must pay foreclosure charges that range from 3% to 5%. 
 	The applicant will also need to pay interest for the days the funds have remained in the account.

					
				

					If I misplace my loan disbursal documents, is it possible to obtain copies?
					
						The disbursal documents for your loan are important and should be available when needed. Keeping hard copies or storing the records online will make them easily accessible. If you have misplaced the documents, you can request copies from the lender by contacting the customer care department either by phone or online. Charges will be applied in accordance with the Lender's policy.

					
				

					Will I receive my Personal Loan Amount after I receive the Sanction Letter?
					
						The Sanction Letter informs the customer of the approved loan amount and outlines the terms and conditions. The customer might need to submit additional documents specified in the sanction letter as a condition for approval. Once the customer agrees to the terms, the loan amount is disbursed after signing the loan agreement.
					
				

					Can a personal loan be declined after the sanction letter is issued?
					
						The Bank will perform due diligence on the submitted documents after the loan is approved. If discrepancies are found, the approval may be delayed or revoked.
					
				

					Are the terms and conditions of the loan in the Sanction letter negotiable?
					
						The terms of the Sanction letter are not binding on the applicant; they may choose to request a lower interest rate, an increase in the loan amount, or a change in the tenure.

Top 3 CIBIL Reasons for a Personal Loan Rejection

Personal loans for salaried individuals have become a prime focus for banks. Unsecured credit, such as credit cards and personal loans, is available to customers based on their regular income and profile. To keep the default ratio low, Banks refer to CIBIL to assess customers’ credit management abilities before issuing credit.

CIBIL records credit usage details, including a history of loans and credit cards used, along with repayment status. Your CIBIL score is a major factor in determining your eligibility for a personal loan, and a healthy CIBIL score of 720 points or above is the key to getting an instant personal loan.

Keeping your CIBIL above the required benchmark is essential, so be wary of the following scenarios. Let us look at the situations that can lead to a CIBIL downgrade.

Personal Loan request declined, due to Credit Card Overdue.

Millennials, with a fresh start in employment and a sudden surge in income, begin living an aspirational lifestyle. Individuals employed by reputable companies and earning high incomes are offered credit cards with generous credit limits.

Overuse of credit cards can easily occur if expenses are not controlled. Without realising that all credit comes at a cost, individuals soon find that expenses have overtaken their income.

Cardholders soon find that their debt has increased manyfold if they are unable to clear the bill by the due date. As they try to solve the financial crisis, they look for ways to alleviate credit card debt as:

Interest on credit card debt can be as high as 40% per annum.
Interest is applied to all future purchases if the bill is not cleared by the due date.
Late payment and overdue charges are levied if the minimum due is not paid.
Compounding charges on unpaid dues can lead to a debt trap.

The request for a personal loan is denied due to unpaid dues on multiple credit cards, as reflected in the CIBIL report, because the credit card debt-to-income ratio is high.

Rejection due to excess funding through App (Application) Loans.

App loans seem like an easy way to secure credit for immediate funding needs and have become popular due to their accessibility and quick processing. Customers find it convenient to get small amounts to cover immediate expenses through a mobile phone interface. Check the illustration below

Hema needed ₹ 50k to pay her credit card bill. Her expenses had been high for a month due to a family wedding. An offer on her phone for instant funds through an app seemed like the answer. She clicked the apply button, accepted the terms, and soon the funds were in her account. This seemed like an easy way out, and she needed an additional ₹50k to be comfortable, which was processed through the app again.

The App loan, however, was not an ideal solution; not being aware of the terms and conditions can be contrary to your financial well-being due to the following:

The interest rate on an App loan is high, ranging from 25% to 30% annually.
The processing fees are high, and 5% is deducted from the loan amount.
The penalties on an App loan are high and applied daily.
App loans are advertised by 3rd parties and can be difficult to reach the original lender for repayment.

App loans are frowned upon by Banks due to predatory lending and high costs. Shorter tenors and higher interest rates, with hidden charges, can increase debt. Therefore, personal loan requests from customers with existing App loans are viewed negatively.

Too many recent credit inquiries are reflected in CIBIL.

To achieve further transparency and a more comprehensive check, CIBIL also records the number of credit applications submitted for various credit types, including loans, credit cards, and consumer loans. Credit enquiries conducted over the years will always appear in the CIBIL history. If the application for the personal loan or credit card is approved, the status is reflected as a running loan.

Lenders view CIBIL enquiries as the number of attempts an applicant has made to secure credit and the number of times they have been granted credit. Applicants seeking a loan should check their eligibility for a personal loan, a secured loan, or a credit card, and, if eligible, before applying, provided their employer is on the Bank’s approved company category list.

Excessive enquiries have a negative impact on the CIBIL score and history due to the following:

Each time the CIBIL records an enquiry, the score is negated by 10 to 15 points.
Excess applications will brand the applicant as credit-hungry and will not fulfil the credit request.
If there are more than 3 to 4 enquiries, the personal loan lender will reject your application on the basis that you intend to get credit from multiple lenders simultaneously.
ICICI Bank will reject a credit card request if there are more than 4 inquiries on CIBIL in the past 3 months.

Trying to get the best deal by forwarding applications to multiple lenders can have a contrary effect, as the lender will check your CIBIL record and may decline your application due to excessive CIBIL enquiries.

In conclusion, prior to the existence of CIBIL (Credit Bureau of India Ltd.), banks relied on their own customer experience to verify applicants’ credit status; now that credit records are available, a CIBIL check is mandatory. A satisfactory credit rating and repayment record will go a long way toward securing credit.

FAQ

Understanding Common CIBIL Queries for Personal Loans

Why are banks referring to CIBIL increasingly for processing a Personal Loan?

Personal loans are unsecured credit extended to customers for personal use and repaid within a fixed term. To keep the default ratio low, banks allocate funds to applicants who meet the eligibility criteria and have a history of meeting their financial obligations on time.

The CIBIL (Credit Bureau of India Limited) records and maintains credit transactions of individuals and issues them a score based on their Creditworthiness. Banks and NBFIs check CIBIL before extending further credit. They refer to CIBIL to verify the following:

The Credit Score of the applicant.
The current EMI for loans being paid by the applicant.
The existing Credit Cards the customer is using.
All loans successfully repaid and closed.
Any pending Credit Card dues and delayed EMI.
Aberrations, delinquent or settled accounts, are reflected in the credit history.

Further Loan amounts are issued to the applicant based on the existing dues and financial eligibility to pay the additional EMI.

Can I get a personal loan with a “Nil” or “0” score?

A 0 or -1 CIBIL score indicates that you have either not availed of credit or do not have sufficient credit history. You can apply for an HDFC Bank Personal Loan or an ICICI Bank Personal Loan.

The HDFC Bank eligibility criteria for applicants with a 0 or -1 CIBIL include the following:

A net salary of ₹30k and above should be transferred to your salary account.
Your employer must be on HDFC Bank’s Approved Company Category list.
A minimum work experience of 12 months is required to process a personal loan.
The applicant must be below 35 years of age to be granted a personal loan without a CIBIL score.

The eligibility criteria required for an ICICI Bank personal loan with a 0 or a -1 CIBIL score:

A salary of ₹1 Lakh or More is required for applicants employed by non-listed companies.
Personal loan applicants employed by companies on ICICI Bank’s approved list should earn a minimum monthly salary of ₹40k.
The company the applicant is employed with must be registered on the MCA (Ministry of Corporate Affairs portal)
The applicant must be gainfully employed for 12 months or more.

Why was my loan rejected despite a 750+ score?

A CIBIL score of 750+ is considered healthy and should make the applicant eligible for a personal loan. Below are instances when a personal loan can be rejected despite a good score.

Customer is overleveraged: An applicant is considered overleveraged if:

The EMI on existing loans exceeds 75% of their monthly income,
Or excess dues are pending on multiple credit cards.

The CIBIL score may not be affected if dues are paid on time, but the request for additional funds may be denied.

The employer is not approved: The company a customer is employed with forms an essential part of personal loan eligibility.

- The request for an HDFC Bank personal loan is rejected if the applicant’s company does not feature on the HDFC Bank Company Category List.
- If the company does not have a vintage of 5 years or more and is not listed on the MCA (Memorandum of Companies Association) portal

Most Banks do not accept personal loan applications from applicants who work for a proprietor or a Partnership company.

Verification is negative: Customer verification is an essential part of the KYC regulations for issuing credit. Lenders perform a Video KYC and, if required, a physical verification at the applicant’s residence or office to verify the authenticity of the information submitted.

If verification is not completed, the Personal Loan request is denied, even if the applicant’s CIBIL score is above the required benchmark.

Incomplete Documents: A personal loan is a collateral-free loan; it is processed based on the customer’s profile and the documents submitted, such as proof of income and KYC documents. A good CIBIL score will ensure personal loan eligibility, but if the required documents are incomplete or unavailable, the personal loan request will not be processed further.

Do private banks offer personal loans to customers with low CIBIL scores?

Private Banks offer personal loans as short-term funding with reasonable interest rates. As personal loans are offered without collateral, keeping the default ratio low is a challenge for most private Banks. CIBIL history and records help identify customers with higher CIBIL scores and a smooth repayment history. Although banks require a CIBIL score of 720+, each case is assessed on its own merits.

Applicants employed in Category A companies, with no defaults in their credit history and a low CIBIL score, may be eligible for smaller personal loan amounts.
If the customer has had an issue in the past and is now paying dues on time, they can be judged based on current credit usage.
Account holders with fixed deposit accounts are eligible for a waiver if they have a low CIBIL score. A personal loan is issued to them, secured by a fixed deposit.
Personal loan requests from applicants who have had a successful credit relationship with the Bank in the past and currently have a lower CIBIL score.

Are NBFCs better than banks for low-CIBIL-score personal loans?

NBFCs (Non-Banking Finance Companies) are similar to Banks, as they are also licensed to provide secured and unsecured credit in the form of loans. Banks and NBFCs set their own eligibility criteria and lending terms.

NBFCs that offer personal loans actively are:

SMFG Finance.
AXIS Finance.
Poonawala Finance.
Piramal Finance.
TATA capital.

NBFCs also require a CIBIL score above 700 and do not issue personal loans to applicants without a credit history. If you have a low CIBIL score, NBFCs do give some allowances, as compared to banks, based on the following:

Overleveraged Customer: If you are currently running 6 to 7 loans and your existing EMI exceeds the permitted income-to-EMI ratio, a Bank will decline your personal loan request as overleveraged. Whereas with NBFCs, you can transfer the principal balance of your existing personal loans to an NBFC. With a balance transfer, your EMI will decrease, reducing an excessive financial burden and increasing your eligibility for the required personal loan amount.

CIBIL inquiries: Each time a customer applies for credit, the lender forwards an inquiry to CIBIL to check their existing CIBIL score, credit history, and credit lines. These inquiries will appear in your record, indicating the number of applications you have forwarded for a loan or credit card. Lenders view too many CIBIL inquiries as a warning that the customer is credit hungry, planning to apply for credit from multiple lenders simultaneously. Banks do not process a personal loan application if there are more than 3 credit inquiries on CIBIL in the past 3 months. Still, NBFCS accepts 6 to 8 inquiries, allowing the applicant to apply.

Application Score: is a value assigned to the customer’s details in the personal loan application form. NBFCS, such as SMFG Finance, use an Apps score before processing a personal loan application. If the customer details score above the required benchmark, the application proceeds; if it does not, it is declined. If the customer’s CIBIL score is low but the Apps score generated from other information is sufficient, the customer may still be eligible for a personal loan despite the low CIBIL score.

NBFC vs Bank: Which is right for your Personal Loan?

Need funds for wedding expenses? Or falling short of the amount required to complete furnishing your home? Personal loans are readily available from Banks and NBFCs for emergencies and personal needs.

What is the difference between Banks and NBFCS?

Banks and NBFCs are both registered institutions licensed by the Reserve Bank of India to provide financial and lending services in the form of

Secured Loans: Home Loans, Loan Against Property, Vehicle Loans.
Unsecured Loans: Personal Loan and Business Loans.

There are key differences between the functioning and facilities of a Bank and an NBFC that influence the criteria for providing credit.

Banks offer demand deposit facilities and are part of the payment system, allowing account holders to issue cheques and transfer funds based on the deposits held in their accounts.
Whereas RBI regulations permit NBFCs (Non-Banking Financial Institutions) to engage in lending and investments, they can accept term deposits only and are not involved in payments or cheque issuance.

Knowing the eligibility criteria and benefits of Banks and NBFCs are essential to choosing a suitable option for your personal loan requirements.

What are the benefits of a personal loan from Banks as compared to NBFCs?

Higher Personal Loan Amounts Issued by Banks v/s NBFCs

Banks issue personal loans ranging from ₹ 1 lakh to ₹ 50 lakh. Banks have the bandwidth to issue larger loans to applicants with a CIBIL score of 720+, a high monthly income, and employment with a Super A or Category A company as per the HDFC Bank company category list.

NBFCs issue loans ranging from ₹50k to a maximum of ₹ 20 lakhs. This is because NBFCs issue personal loans to a wider range of customers and higher-risk categories. They issue funds to applicants with lower CIBIL scores employed with proprietorship and private limited companies.

Lower Personal Loan Interest rates from Banks as compared to NBFCs.

Banks offer personal loans at the most reasonable interest rates. From 9.99% to 13% at a monthly reduced balance. As the cost of funds available to Banks are much lower than that of NBFCs.

NBFCs charge higher interest rates on unsecured personal loans. The interest charged by NBFCs ranges from 12% to 22% at a monthly reduced balance. NBFCs charge higher interest rates due to higher funding costs

Reduced Processing fees charged by Banks compared to NBFCs.

Banks’ processing charges are much lower than those of NBFCs. Banks charge processing fees ranging from 0.5% to 2%. The processing fees charged for an HDFC Bank personal loan are at a standard rate, regardless of the approved loan amount.

NBFCs charge higher processing fees for personal loans. The processing fees charged by NBFCs range from 3% to 5% of the loan amount disbursed, resulting in a substantial deduction from the approved loan amount.

Banks require fewer documents than NBFCs to process a personal loan.

Banks have clearly defined, fixed documents required to process a personal loan. These include the Aadhaar card and PAN Card as the KYC Documents and the salary slip and Bank statement as income proof. Documents are to be submitted online or provided in hard copy to initiate processing.

NBFCs require extensive documentation to process a personal loan, including additional address proof for both current and permanent residence. The NBFC’s credit officer can request additional documents to clarify existing debts. Approvals are also issued provisionally, with documents to be submitted before disbursal.

Advantages of applying to an NBFC for a personal loan, as compared to a Bank.

NBFCs issue personal loans to employees of all companies; Banks are restricted by policy.

NBFCs process personal loans for employees of all types of companies, including Limited, Private Ltd, PSU, Government organisations, and Partnership and proprietorship companies, as well as applicants from all organisations.

Banks will not process a personal loan if your employer does not feature in the Approved Company Category List of the bank. The terms of the loan are determined by the company’s category.

If you have a lower CIBIL score and need a Personal Loan, apply to an NBFC.

If, for some reason, your CIBIL score is not up to the mark, an NBFC can provide you with a personal loan when required. An NBFC will review your CIBIL, taking into account the reason for the decline. If there are no consistent defaults and your recent payment transactions are regular, you have a chance to redeem your CIBIL score with an NBFC.

Banks process personal loan applications, placing emphasis on the CIBIL score. Most banks have a minimum score requirement of 720 or higher to qualify for a personal loan. Banks following the scorecard system will not process your personal loan further if the minimum score requirements are not met.

Avail a lower interest rate by transferring your credit card dues to a personal loan from an NBFC.

The interest rate on unpaid credit card dues is 36% to 40% per annum. This high interest rate can lead to a debt trap if you are unable to clear your credit card dues. With the help of a Personal Loan Balance transfer to an NBFC, such as SMFG Credit, you can clear your credit card bill. The due amount is repaid through easy EMIs over a limited tenure at a reasonable interest rate.

Banks have stringent guidelines for processing a credit card transfer; the overdue bill cannot exceed 5 times the applicant’s monthly salary. The applicant must meet the Bank’s eligibility criteria, and if other loans are in place, the applicant may be declined as overleveraged.

Transfer the high-interest APP Loans to an NBFC Personal loan with a Balance Transfer.

App loans, as they are popularly known, are extremely popular due to their quick funding and availability of smaller amounts. Customers take an App loan to tide them over a financial shortfall without realising the high interest applicable. NBFCs like SMFG India Credit Company help customers get out of high-debt, application-based loans through balance transfers. The amount is converted into a personal loan at a reasonable interest rate with a suitable EMI.

Banks do not process balance transfers for personal loans held with an alternate Bank or an NBFC, but do not accept balance transfers for App loans. If you have taken App loans and are under pressure from high interest rates, do not wait for your debt to build up and lead to a default. Transfer the balance of your App loan to an NBFC.

Conclusion.

A personal loan from a Bank or an NBFC, the decision will depend on the following inputs:

Circumstances in which applying for a personal loan from a bank is a better option.

When higher loan amounts are needed.
If your CIBIL score is above 720 points.
Banks provide personal loans at lower costs.
Banks offer prioritised processing with minimal documents.

Situations when a Personal Loan from an NBFC is a good option.

If your CIBIL score is below the required benchmark.
If you are employed with a non-listed company.
You need to repay your credit card dues.
If your existing debts are branding you as overleveraged.

Understanding HDFC Bank Personal Loan Top-Up: Eligibility, Benefits, and Considerations

Can I get a top up on my HDFC Bank Personal loan?

HDFC Bank, the leading personal loan provider, offers existing customers the option to access funds for individual use through a Top Up. A personal loan top-up is a convenient option for HDFC Bank personal loan customers. The existing personal loan gives the customer leverage with the Bank and helps speed up the process for additional funds.

What are the HDFC Bank Top Up personal loan eligibility criteria?

To get a top-up on an existing personal loan, the applicant should fulfil the following eligibility criteria:

Income: The applicant should be earning a regular income of ₹ 30000/- and above, transferred electronically to the salary account every month.

Company Category: The applicant’s current employer must appear on HDFC Bank’s list of approved companies for personal loan sourcing.

CIBIL Score: The applicant’s CIBIL score must be above the required benchmark of 720 points, and the applicant must have no recent credit.

HDFC personal loan track: The EMI repayments for the existing HDFC personal loan should be made as per the schedule without delays or defaults.

Financial Eligibility: The applicant should be eligible for additional loan amounts as per the HDFC Bank multiplier and FOIR (Fixed obligations versus income) calculations.

Existing credit dues: The credit card dues and EMI for other loans must not exceed the eligibility criteria requirements.

Gap period: To Top Up an existing personal loan, the HDFC Bank requires a gap period of 3 months or more, particularly if you do not have a good credit score.

What are the benefits of the HDFC Bank personal loan top-up?

With Top Up, an applicant can receive an Instant Personal Loan Online to help deal with emergencies and personal expenditures.
A Top Up enables an applicant to receive surplus funds when required, as the principal amount repaid is deducted from the new loan structured after the top up.
With an HDFC Bank top up personal loan, the existing balance of the personal loan and the fresh loan amount are merged, facilitating the payment of a single EMI.
The applicant can request an extended tenure for repayment of the new loan amount, with an affordable EMI.

How many times can an applicant apply for an HDFC Bank personal loan Top Up?

An applicant can receive a Top Up personal loan from HDFC Bank 3 to 4 times as required.
The applicant’s profile must meet the eligibility criteria for the HDFC Bank personal loan top-up.
The applicant should earn a regular income with no gap in employment.

When should I take a personal loan top-up?

- After a Top Up, a restructured loan generates a fresh amortisation schedule. Taking a Top Up at the beginning of the tenure is beneficial, as later on you would have paid the maximum interest component.
- When you need funds in an emergency, applying for a Top Up is a good option. As an existing customer, HDFC Bank will have already verified your details, enabling the loan to be processed faster than with an external lender.

If there is a requirement for maximum funding, a top-up will increase eligibility, and the applicant can apply for an extended tenure to repay the loan amount with an affordable EMI.

When is a personal loan top up not a good option?

If you need a smaller amount, applying for a new loan is a better option, as the funds can be repaid if extra funds become available.
Compare the interest rate of your existing personal loan. If you are getting a better interest rate from an alternate lender, apply for a parallel loan.
If your personal loan has passed more than half of its tenure, restricting the loan with a top-up will cost you more.
If you have multiple personal loans, then applying for a balance transfer and consolidating the loans works better by taking a top-up.

How will the status of my current personal loan change after a top-up?

After your request for a top up has been approved, your personal loan will change as follows:

The personal loan is preclosed without any charges.
The top-up amount is transferred to your salary account.
The principal balance is transferred to a new loan account.
The principal balance of the existing loan, plus the top-up amount, forms the new loan.
A fresh tenure and EMI are applied from the following month.

Can you get an HDFC Bank personal loan top up if you work for a non-listed company?

If an applicant has changed employment after an HDFC Bank personal loan has been granted. The top-up amount is processed according to the current employer status as per the HDFC Bank company list.
If the applicant’s company does not appear on the HDFC Company Category list, the top-up request is denied.
Whereas, if the applicant was previously employed with a Category C company as per the Approved company list of HDFC Bank and is now working for a Category A company, the applicant is offered a higher loan amount.

What are the factors that affect the interest rate for an HDFC personal loan top up?

The interest rate for your personal loan post a top up will depend on the following factors:

Your current income. If your income has increased, you are eligible for a higher loan amount at a lower interest rate.
The current HDFC Bank interest rates will apply after a top-up. If the rates are increased, your loan will be processed at a higher interest rate.
The loan amount was approved after a top up. If the loan amount approved after a top up is ₹10 lakhs and above, the lowest interest of 9.99% is issued for your personal loan.
Your current employer category, as per the HDFC Bank company category list, offers lower interest rates if you are employed with a top-tier company.

Conclusion:

A Top Up works well for applicants needing funds on an urgent basis, whereas if the HDFC Bank personal loan interest rate has increased or you have repaid the major part of your primary loan, an HDFC Bank parallel loan is a good option.

Navigating Personal Loans with Bad Credit: Strategies and Solutions

A credit score or CIBIL history check has become a vital part of the lending process. Lenders will request your credit report from CIBIL before proceeding with your Personal loan application. If your score does not meet the necessary benchmark, your request can be declined.

A numeric score is issued by CIBIL, ranging from 300 to 900 points, based on an individual’s credit usage. A credit score of 720 points and above is considered a healthy score by banks for issuing credit. Depending on the repayment history and credit usage, you are issued a score by major bureaus recording credit transactions, which can be interpreted as follows;

600 to 650 points: if your credit score hovers between the 600 and 650 mark, this means:

There are lapses and delays in the repayments for loans or credit cards.
A settled credit account can also lead to a 600-point score.
Your credit usage has been minimal, which causes your score to stagnate.

A score of 600 to 650 points is considered below average by lenders, and obtaining further credit may be difficult.

650-700 points. Any score above 650 points is a fair score, though the lender will look into the details of the credit history for the reason for the dip in score, which could be any of the following:

Applying to multiple lenders for credit can lead to excess inquiries in your CIBIL record and can affect your score.
Have pending credit accounts in the form of a credit card not in use or a personal loan which has an amount pending for closure.
Excessive use of credit cards, with minimum due paid every month and the balance amount is being rotated.

700-750 points: Although a 720 CIBIL score is the required benchmark by Banks, any score above 700 points will make you eligible for a personal loan.

Applicants with a healthy credit usage are allotted a score of 700+.
Applicants can get a score card approval for a YES Bank personal loan.
Applicants with a CIBIL score of above 700 are eligible to apply for a personal loan
top up or Balance transfer if required.

750 points and above: A CIBIL score of 750 points and above is the mark of successful credit management.

Customers with this score are preferred by leading Banks.
They are offered higher loan amounts with the lowest interest rates.
Instant online approval for a personal loan from leading Banks for unsecured credit.

Steps to a personal loan with a low credit score.

If you need additional funds as a personal loan and are currently facing rejections due to a low credit score, you can avail of the following options:

Apply to a Bank with an account or a credit relationship: If you have an account with a Bank and maintain a good balance, or have previously repaid credit successfully, apply for a personal loan online; the chances are that the credit team might approve a personal loan.

Apply for a smaller amount or choose an NBFC that charges higher interest rates: If you know your credit score is lower than needed, there is no point in applying to other lenders, as this can further damage your credit score. Seek an NBFC that provides unsecured loans with lower credit score requirements, even if the interest rate is higher, as this will help you overcome your cash flow issues.

Apply with a co-applicant: A guarantor or a co-applicant with a good credit rating and income can strengthen your Personal loan application. As a personal loan is unsecured funding, having a co-applicant with a healthy financial track record can reassure the lender that the repayment will be made on time.

Apply for a Personal loan against securities or fixed deposits: If you hold funds in fixed deposits with a Bank, it will strengthen your personal loan request. Banks offer up to 80% as a loan against the amount held as a deposit or security. Banks are reassured that they have funds in safekeeping to recover the loan if required. Therefore, the clause of a downgraded CIBIL score will be overlooked.

Check your credit score regularly: Do not let it come as a surprise; a free credit score check is readily available at www.CIBIL.com. It is helpful to check your credit score before applying for further credit to understand your current standing. In case there is an error, you can take steps to rectify it.

How to improve your credit score?

Circumstances may have led to a fall in your credit score, but all is not lost. Take the following steps to get your credit score back on track.

Repay pending dues: Clear outstanding accounts by paying outstanding amounts and closing them.

Transfer credit card dues: Apply for a balance transfer of credit card dues via an AXIS Bank personal loan to avoid paying an inflated interest rate. The loan amount can be repaid easily with a reasonable EMI.

Timely EMI payments: Ensure there are sufficient funds in your account to clear the EMI for existing loans.

Rebuild your CIBIL score: Take steps to rebuild your credit score by applying for a secured loan and making timely repayments.

Usage of unsecured credit: Work on increasing your score by using your credit card judiciously and paying off the balance on the due date. Regular usage of a credit card with timely payments can help to increase your score quickly.

Keep your debt-to-income ratio intact: Avoid excessive credit use, live within your means, and create a budget to ensure you have the funds on hand to repay the credit you use.

Getting over a bad credit phase and improving your credit score are not easy. To give individuals an opportunity to improve their current credit rating, the RBI (Reserve Bank of India) has instructed credit rating agencies to remove details of accounts that are more than 7 years old.

Company category list versus Credit score- which matters more for a loan?

The availability of credit in the form of unsecured finance and mortgages from banks and NBFCs is changing the lifestyles of salaried individuals.

Individuals earning a high income no longer have to wait to own their own home or furnish it with the latest accessories; a home loan or a personal loan can easily provide the funding needed to repay it conveniently via monthly instalments. Credit cards enable instant payments for retail goods and fine dining.

Lenders have, over the years, identified segments and behaviour patterns of individuals who use credit responsibly and repay dues on time. Primary factors include employment with organisations on the Bank’s approved company list and the individual’s previous credit usage. These factors will further influence eligibility for additional credit.

You may have recently experienced a credit default. Will your company category help override this, or will a healthy credit history enable you to receive the funds you need? A detailed comparison of both these factors will help create a better understanding:

What is a company category list for loans?

To classify companies for lending purposes, banks have published their own approved lists of companies for loan and credit card sourcing. Companies on the list are stable, profitable, with high turnover and substantial assets. Banks issue their own company category list, such as:

HDFC Bank Company Category List.
ICICI Bank Approved List of Companies.
AXIS Bank Company category list.

What is a credit score?

A credit score is a three-digit number that indicates an individual’s creditworthiness. Credit bureaus operating in India include:

The Credit Bureau of India Ltd (CIBIL)
Experian.
Equifax
CRIF High Mark

The Credit Bureau of India Ltd (CIBIL) score is used by most Banks to assess an individual’s credit usage. The score ranges from 300 points at the start to a maximum of 900 points. A score of 720 or above indicates a good repayment record and eligibility for credit.

What is the importance of the company category list?

Employment with an approved company signifies that the applicant has job stability and a regular income.

HDFC Bank classifies companies by their prominence as Super A, Category A, B, C, and D. Applicants employed by upper-tier companies are preferred candidates for an HDFC Bank personal loan issuance.
ICICI Bank categorises approved companies as Elite, Super prime, and Prime, with Elite companies in the top tier. Applicants from the listed companies are eligible for ICICI Bank’s lowest personal loan interest rate.
AXIS Bank categorises companies as Category A, B, C, and D based on their turnover and risk profile. The approved list for an AXIS Bank personal loan includes Government undertakings and public and private limited companies.

What is the relevance of the credit history?

Your credit history is the record of the loans and credit cards allotted to you and the repayment details. Credit bureaus like CIBIL will assimilate and reflect the following in your credit history:

The number of times you have applied for credit to various lenders.
Your existing credit lines and their repayment track.
Previous Loans and credit cards you have successfully repaid and closed.
Credit lines with pending payments.
Loans or credit cards that have been settled.

Based on your credit history, CIBIL will allot you a credit score. Most banks require a credit score of 720 or higher to qualify for a personal loan. Your credit score and history will determine your eligibility for an unsecured personal loan, a credit card, or a mortgage.

If there are any delinquencies or delays in your CIBIL history, or your CIBIL score is

How to check company category for loan?

Leading Banks such as HDFC Bank, ICICI Bank, and AXIS Bank will process a personal loan request if your company is included on the Bank’s approved company category list.

Before applying, it is advisable to check whether your company is on the approved list of banks to avoid delays. Applicants can check the company category online on the Bank website before submitting documents, or forward your query to us at www.yourloanadvisors.com.

How to check your CIBIL score?

A self-check for your CIBIL score is advisable before you apply for credit.
You can check your CIBIL report by submitting a request on the CIBIL official website and filling in the form.
Make sure your CIBIL score is above the required benchmark before submitting your application, as a CIBIL check by the Bank will lower your score by 10 to 15 points.
In case your CIBIL score is below the required benchmark, apply to a lender that will issue you a loan based on an existing relationship.
Apply to an NDFC that accepts a lower CIBIL score, but will issue a personal loan at a higher interest rate.
Review the details in your report. If a transaction has not been updated, you can contact the lender to rectify it.
Any outstanding dues must be paid. If the credit ratio is high, consolidate your loans and credit card debt with a personal loan balance transfer.

Apply for a personal loan after using the Personal loan eligibility calculator to check the amount you are eligible to get.

What are the advantages of a company category list?

The HDFC Bank company category list, the ICICI Bank company category list and the Axis Bank Approved List of Companies are exhaustive lists of companies approved to source unsecured loans and credit cards.

You should check if your company is approved before applying for a personal loan. If your company appears on the approved list, the Bank has confidence that you have stable employment and can pay your dues on time. Loan applicants benefit as follows:

Applicants can apply for an online personal loan and credit card, or give hard copies of documents.
Applications are processed with speed to disburse the loan amount to the applicant’s account within the specified time frame.
HDFC Bank and ICICI Bank offer personal loans to applicants without a CIBIL score if their employers are on the approved company list.
Loan amounts are offered with an increased multiplier based on the salary drawn and the company’s category.

Lowest interest rates are offered to upper-tier companies listed as Category A and in the super prime category of the ICICI Bank company category list.
Customers employed at the top companies are allotted a maximum loan tenure of 72 months.

What are the benefits of the CIBIL score?

Your CIBIL score reflects your credit management and plays a crucial role in the processing of a loan request. CIBIL assigns scores from 300 to 900 based on your credit usage. When you apply for credit, the lender will first review your credit score and history.

A high CIBIL score gives the lender confidence that the loan amount will be repaid on time, particularly when issuing unsecured credit, such as a personal loan or a credit card.
A CIBIL score of 720+ indicates judicious use of credit, timely repayment of EMI and credit card dues and is the benchmark required by most Banks.
With a good CIBIL score, your loan application is approved by most Banks for further processing.
The lowest interest rate is offered to applicants with a credit history of successful loan repayment and no outstanding credit card debt.
The lender will take into account your CIBIL score and current credit dues when granting you the loan amount required.

Can you get a loan without a credit history?

Cashless spending has become the norm; payments are made digitally or via credit or debit cards. Building a CIBIL score is now mandatory. With a bank-issued credit or debit card, purchases can be made on EMI, helping to develop a CIBIL score.

It takes 12 months of regular credit usage for CIBIL to issue a credit score. If you are new to credit or do not have the required length of credit history, you are eligible for a personal loan from;

HDFC Bank
ICICI Bank
YES Bank.

Which Bank will provide a loan to non-listed company applicants?

If you are employed with a company that does not feature in the personal loan company category list of any Bank, you have the following options:

YES Bank provides personal loans to applicants from non-listed companies who meet the YES Bank eligibility criteria.
Employees of non-listed companies with a salary of ₹ 1 lakh and above can apply for an ICICI Bank personal loan.
NBFCs, including SMFG Finance Private Ltd, TATA Capital, and INDUSIND, provide personal loans to employees of non-listed companies.

In conclusion, your company profile and CIBIL score are the two primary variables lenders consider when issuing a personal loan. Although all salaried employees look forward to working with a listed company, changing employers may not be easy if a non-listed company employs you.

Whereas regular credit usage and timely repayments are achievable. Make sure to build a strong credit profile so you meet the personal loan eligibility criteria for an instant personal loan.

Understanding the Impact of Credit Defaults on Your CIBIL Score and Financial Future

Going back a decade, when Private Banks opened up to providing unsecured credit, the concept of credit cards and personal loans was new. Customers used credit freely, with little knowledge or discipline regarding repayment terms, taking for granted that the payments could be cleared at their convenience. They could shift from one lender to another as the data was not shared.

With the introduction of CIBIL (Credit Bureau of India Ltd), banks now report all credit and repayment transactions of borrowers to CIBIL. CIBIL maintains individuals’ and companies’ credit histories and repayment records and issues a CIBIL score. This information is shared with lenders, who assess a borrower’s current and past credit history before sanctioning credit.

What are the primary reasons for credit delays and defaults?

The past defaults and delays may have been due to the simple shortage of funds or any other reason, which includes:

A return of the EMI due to a change of account: If your salary account changes, the Bank should be informed in advance of the shift to the ECS mandate. If the Bank is not notified in time and there are insufficient funds, the EMI will remain unpaid and will be reflected in your credit history.

Loss of Employment: If you have lost your job, the EMI will still be presented to your account on the due date. It is advisable to arrange funds from other sources and maintain a sufficient balance in your account to clear the EMI. If you have outstanding credit card debt, pay the minimum balance by the due date to avoid default.

Delay in salary credited: The EMI will be credited to the salary account on the due date. It is advisable to keep one month’s instalment as an advance in case the employer does not credit your salary on the assigned date, the EMI will be marked as unpaid.

Unable to manage finances properly: If the expenses have increased due to unplanned expenditures, and you have made extensive usage of your credit card, individuals who are unable to manage their finances in such situations are liable for default.

Clerical and recording errors: Unaware that there is an error in your CIBIL report? This may only come to light when you apply for a loan, the default error could be due to a wrong match or faulty reporting by the lender. Whatever the reason may be, this could affect your CIBIL score unless it is resolved.

What are the Credit defaults and the repercussions?

Credit score drops: CIBIL updates your credit transactions and revises your score every 30 to 45 days. Lenders notify CIBIL when EMIs are credited, and credit bills are cleared. Delays, defaults, and unpaid dues are also reported. The score is revised, upgraded, or reduced based on these factors. If your CIBIL score drops below the acceptable mark, lenders may not grant you credit, or funds may be given at a higher interest rate.

The credit history cannot be changed: regardless of the reason for the EMI return or delayed payment on your credit card, it will be reported to CIBIL. The return of EMI on your home loan or personal loan will always be reflected in your track record and cannot be mitigated. It will remain in your history.

Excessive bounces will result in a denial of further credit. When you apply for a Personal loan or a home loan, your credit history will reflect the repayment history of your existing and used loans. If your EMI has been returned unpaid and/or delayed, an infrequent bounce can be overlooked, but a continuous string of defaults or delays is cause for concern.

Credit cards overdue: Your credit card balance must be repaid on the due date; any outstanding balance will incur interest of 36% to 42% annually. The balance owing on your credit cards will reflect in your CIBIL history. If it is above the permitted limit, you will be denied further credit due to overleveraging.

Collection and legal action: Continuous non-payment of your EMI or credit card bills will invite reminders by the lender. If they remain unpaid, collection agents will contact you to resolve your overdue unsecured credit, such as credit cards and personal loans. At the same time, legal action can be initiated for mortgages that include home loans and auto loans.

Other effects: The CIBIL score is now recognised as an essential benchmark not just for issuing financial products, but also as a personal assessment of an upright and responsible individual. If you have a good CIBIL score, it will not only make it easier to get credit when required but also open many doors at the professional level.

What steps can you take to overcome a poor CIBIL record?

Reset of your Credit records: You cannot change your past credit history as recorded by CIBIL, but you can always work at making a fresh start. If you have defaulted, settled, or have a record of delayed payments, the CIBIL now removes the details of the negative records from your history after 7 years. This does not mean that your debt has been cleared, but it gives you a chance to rebuild your score.

Try to clear the previous debt: If your financial situation improves, it is the best solution to repay the amount due and clear your debts. Repaying the amount owing with interest will close the account and have a positive effect on your CIBIL score, while not paying the interest due will mark the status as settled. A settled account will deny you further credit from the lender and hamper your CIBIL score.

Restart your history with commodities: Landed with a poor CIBIL score, do not wait until your need for a loan gives you stress. Start rebuilding your score by purchasing commodities with your Credit or Debit card, convert the spend into EMI, and make sure you repay the instalments on time.

Apply for a secured credit: a Gold Loan or a Loan Against Property, which requires a lower CIBIL score due to the security provided, can help you get the finance you need and improve your CIBIL score. A personal loan against a fixed deposit amount with a Bank is also issued for emergency needs.

Look for a successful relationship: A lender with which you have a salary account, with a good average bank balance, or have an existing or closed credit card or loan with an on-time repayment track, can issue you further funds based on the same. Your CIBIL score may be overlooked as you have maintained a good repayment record with the lender.

Conclusion :

In conclusion, it is not just your CIBIL score that the Bank considers when issuing you credit; your credit history is also taken into account. If you miss a payment, try to clear the amount as soon as possible, as the repayment period is also mentioned in the credit records. Managing your finances well and making arrangements in advance to cover shortfalls and pay your credit dues on time is the roadmap to maintaining a sound credit history.

Essential Guidelines for Securing a Personal Loan: How to Avoid Rejection

A Personal loan is characterised as quick funding for personal and emergency needs. Individuals apply for a personal loan, assuming the loan amount they apply for will be available as required. This is not always the case, as Banks have their norms and guidelines to follow and will process the request accordingly.

Choose your lender wisely and apply for a personal loan to the most suitable lender who will fulfil your requirements. Although primary Banks issuing personal loans, such as HDFC Bank, ICICI Bank, YES Bank and AXIS Bank, have their own policies, the basic criteria remain similar. Taking note of the following will help you expedite the processing of your personal loan and avoid undue delays or a decline.

A successful relationship with the Lender

Banks value the relationship and will process a personal loan as a priority. Applicants with an existing personal loan can apply for additional amounts, known as a Top Up. A pre-approved personal loan is also offered to eligible applicants. An association can be in the form of:

A salary account with monthly salary credits.
A savings account of a good vintage.
Regular transactions and a healthy Balance.
An existing loan or credit card account.

The Bank must approve the employer.

HDFC Bank processes personal loan applications from employees of companies included in the Approved Company Category List. Applicants employed by a non-listed company can apply for a personal loan with YES Bank or an NBFC such as Fullerton India and INCRED finance. Check the following employer details before applying:

The company should appear in the Bank’s Company category list.
The company must have a vintage of at least 5 years.
The entity should be included in the MCA.
Partnership and proprietorship companies are not eligible.

Documentation requirements

Documents form the basis for processing a personal loan issued without collateral. Applicants can submit documents online from their official email ID or provide self-attested hard copies.

KYC and income documents are required to process a personal loan.
Clear and valid copies of documents are required.
The original documents must be available for confirmation.
One-time submission of all documents will expedite the process.

CIBIL Score and Credit history.

The CIBIL score is a rating issued by CIBIL (Credit Bureau of India Ltd.) based on an individual’s credit history and usage. Lenders view the CIBIL score and history before issuing further credit.

The CBIL score required by Banks for issuing credit is 720+
Banks processing loans with a CIBIL score of -1 or 0 are HDFC and ICICI Bank.
The repayment history of all credit taken for the past 7 years is considered.
Each credit inquiry reduces your score by 10 to 15 points.

Check your financial eligibility.

Further credit is issued in proportion to your regular income, expenditures, and the monthly EMI being paid. The loan amount is calculated based on the applicant’s income and company category.

The applicant must have the financial bandwidth to afford the additional credit.
The credit card debt must not exceed 3 times the monthly income.
There must be no delays or defaults in repayments for the past three months.
Apply for a Personal loan Top Up or Balance transfer if you are overleveraged.

What are the additional precautions an applicant can take when applying for a personal loan?

Use the eligibility calculator before applying to confirm the loan amount you are eligible to get. The eligibility calculator will give you an estimate of the loan amount you may qualify for based on your current financial standing.
Apply with enough time in hand. Although the ICICI Bank personal loan process is fully digitalised with Video KYC verification, any pending issues can delay it. Banks may request additional documentary proof if required.
Have the originals of the submitted documents readily available. You will be asked to present the original KYC documents during the verification process, and your income documents will be verified for any discrepancies.
Your Bank statement is the anatomy of your finances. Your Bank balance will be reviewed for any recent bounces, the average balance you maintain, and whether it is sufficient to cover the additional credit.
Do not apply to multiple lenders at the same time for your loan requirements; numerous inquiries will appear on your CIBIL report. Besides reducing the CIBIL SCORE, they will make the lender nervous that you intend to avail credit from multiple sources, which you may not be able to repay.

Company Category	Multiplier
Category A	30
Category B	25
Category C	20
Category D	12

Company Category	Net Income	FOIR	Net Income	FOIR
Category A	₹ 50000/-+	70%	₹ 30000/-+	50%
Category B	₹ 50000/-+	70%	₹ 30000/-+	50%
Category C	₹ 50000/-+	60%	₹ 30000/-+	50%
Category D	₹ 50000/-+	50%	₹ 30000/-+	50%

Profile details of the Applicant.			Current Debts
Company Category	CAT B		EMI for Home Loan
Net Salary	₹ 60000/-		Credit Card Dues
FOIR Applicable		70%	(5% taken as the obligation)
Multiplier		30	Total Obligations

Eligibility Calculations		Eligibility as per the applicable tenure.
Eligible to pay EMI up to	₹ 42000/-	Repayment Tenure	24 months
Existing debts	17000/-	Eligible for a Max loan Amount of	₹ 7,20,000
Current eligibility for EMI	₹ 30000/-

Table of Contents

Personal Loan Eligibility Calculator

How to use the Eligibility Calculator.

Apply For Personal Loan

What is the income required for personal loan eligibility?

How much EMI am I eligible to pay?

The role of the FOIR (Fixed obligations versus Income)

The formula used to calculate the FOIR.

Key features of the FOIR include

How does employment influence the Personal Loan eligibility?

Profile of Employer

Company Category

Vintage of Employment

Salary proof

Key Features of the Tenure affecting the Personal Loan eligibility

Longer Tenure

Shorter tenure

Illustration of the EMI calculation based on the tenure

Existing Liabilities

CIBIL

How to improve your Eligibility for a Personal Loan

Check out a Live example of increasing eligibility with the assistance of www.yourloanadvisors.com

Usage of the EMI Calculator for Personal Loan Eligibility

Frequently Asked Questions

Will my current debt status affect my eligibility for a personal loan?

The existing FOIR (Fixed Obligations versus income ratio):

Check CIBIL Score and History:

Confirm Personal Loan Eligibility before applying:

Will my personal loan eligibility differ if I have a bank account with the bank I am applying to?

Quick Processing of your Personal Loan request due to:

Special offers to salary account holders:

Finances are clearly visible, to reassure the Bank:

On the other hand, the eligibility may be hampered due to:

How does the age of the applicant affect personal loan eligibility?

Age 21 years and above:

Middle-Aged Applicants above 30 years of Age:

Senior Applicants above the age of 50 years:

Is 700 a bad CIBIL score for the application of a personal loan?

Non-use of credit in recent times:

Credit card overdue:

Close pending credit accounts:

How much personal loan can I get on an INR 60,000 salary in HDFC?

What documents are required for personal loan eligibility?

As Income Documents:

KYC Documents:

Additional Documentation Criteria:

What are the Factors Affecting Personal Loan Eligibility?

Age Requirements:

Employment:

Stability:

CIBIL Score:

Existing Liabilities:

How can I check my personal loan eligibility?

What Are the Key Disbursal Documents for a Personal Loan? A Comprehensive Guide.

The Personal Loan Agreement.

What is the Importance of the Personal Loan Agreement?

The Sanction Letter.

What are the Contents of the Sanction letter?

What is the importance of the Sanction Letter?

The Amortization schedule.

What is the relevance of the Amortization schedule?

FAQ

Will the copies of my Loan disbursal documents be sent to me by email, or will I receive hard copies?

Can I cancel my personal loan after the loan agreement has been signed and the loan is disbursed?

If I misplace my loan disbursal documents, is it possible to obtain copies?

Will I receive my Personal Loan Amount after I receive the Sanction Letter?

Can a personal loan be declined after the sanction letter is issued?

Are the terms and conditions of the loan in the Sanction letter negotiable?

Top 3 CIBIL Reasons for a Personal Loan Rejection

Personal Loan request declined, due to Credit Card Overdue.

Rejection due to excess funding through App (Application) Loans.

Too many recent credit inquiries are reflected in CIBIL.

FAQ

Will repaying my credit card dues help me recover my credit score?

What is the difference between a soft and a hard CIBIL inquiry?

Which banks offer an app-based loan balance transfer?

Understanding Common CIBIL Queries for Personal Loans

Why are banks referring to CIBIL increasingly for processing a Personal Loan?

Can I get a personal loan with a “Nil” or “0” score?

Why was my loan rejected despite a 750+ score?