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 Personal Loan Basics
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Personal Loan Basics

What is a Personal loan?

A Personal Loan is usually availed when one has an immediate need for a large amount of money. It is a quick and simple way to avail a personal loan, provided you come to the right people about it.

 

Why do You Need a Personal Loan?

A personal loan is most often used for:

- Wedding expenses

- House renovation

- To purchase a priced gadget

- For your dream vacation

- To solve your temporary money crunch

 

Who is Eligible?

The eligibility criteria for availing personal loans varies from one bank to another, however the general criterion are as follows:

- Personal loans are primarily meant for salaried personnel and can be availed by anyone working as a permanent employee.

- You must be a minimum of 21 years of age and a maximum of 58 years at the time of loan maturity

- Your income (min 20,000 INR)

- Your previous credit and loan records

While these are the general criterion, here’s a more detailed look at the most frequently asked questions regarding Personal Loan Eligibility.

 

1) I am a Professional Working with a Reputed Company as a Consultant (temporary employment). Am I Eligible for a Personal Loan?

No, only persons who are on the permanent rolls of a company are eligible for a personal loan. However, you may be eligible for an unsecured business loan.

 

2) I have joined a Company on Internship and I get paid a monthly stipend for the same. Can I avail a personal loan?

No, most banks do not provide personal loans for people working as interns. However, upon confirmation of employment and the credit of your first month salary, banks may consider providing you a personal loan.

 

3) I am a Non Resident Indian (NRI). Can I avail a personal loan?

Yes, there are banks that provide personal loans for NRIs.

 

4) Can I get a loan based on the rental income I get from my house?

Yes, some banks allow loans against rental income.

 

5) I had applied for a loan in the past and did not avail it. Would I be able to get a loan now?

Yes, independent of your past applications, if you satisfy the other eligibility criteria, you would be able to get a personal loan.

 

6) My personal loan application was declined in the past. Can I apply again?

Depending on the reason for rejection, the case can be re looked at subject to the terms and conditions of the lender.

 

7) I already have a personal loan, can I avail another one from the same bank?

Yes, most banks allow you to do the same. These are usually known as top up loans, the parameters for which vary from bank to bank.

 

8) Is there any age limit for availing a personal loan?

Most banks have a minimum age limit of 21 years to allow a personal loan. The maximum age limit varies from bank to bank and could be 58 or 60 years or the age of retirement depending on the bank. The maximum age limit pertains to the planned time of maturity of the loan.

 

9) I am a bachelor residing with friends. Would I be able to get a personal loan?

This varies from bank to bank, but there are quite a few banks who allow bachelors to avail personal loans.

 

10) I have never taken any loans or credit cards in the past. Would I be able to get a personal loan?

Though several banks look for a credit history before approving a loan, there are quite a few banks which allow you to take a personal loan without the same.

 

11) How does adding a co-applicant to my personal loan application help?

In case the eligibility of the primary applicant does not completely satisfy the bank norms, some of the banks allow for a co-applicant to be attached to enhance the loan application.

 

12) Do I need a guarantor to avail a personal loan?

Most banks do not require a guarantor for a personal loan. There may be some rare exceptions for this.

 

13) Do I need to provide any collateral to avail a personal loan?

No, personal loans are totally unsecured and do not require any collateral to be attached.

 

To find out if you are eligible for availing a Personal Loan or not, find it all here

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