There are a large number of banks offering different kinds of loans today that can help fulfil different needs for taking loans. When you apply for a particular loan, it is useful for you to know what the eligibility criteria for different loans by different banks are. You can get a brief idea here, and go through the bank wise details in the specific sections for each type of loan.While these are the broad criteria, our loan advisors will explain specific eligibility parameters of different banks to you while initiating your applications.
Usually banks look for a good repayment capacity while providing a personal loan. This could be judged by the bank by taking cognizance of regular income and age of the applicant. The eligible age and the monthly / annual income would also depend on the type of income that the applicant gets – from a job which provides a salary or from a business that a self-employed applicant runs.
If you are salaried, then your age should be between 23 and 58 years, whereas the eligible slab for self-employed persons is between 28 and 65 years of age. The monthly income for salaried people should be Rs. 20000 per month, and higher for people living in metro cities. Since self-employed people have a variable income every month, their turnover should be at least Rs. 40 lakhs per year, and if they are self-employed professionals like doctors or architects, then the minimum eligibility of annual turnover is Rs.15 lakhs. An important parameter for personal eligibility is the CIBIL score, and banks look at a score above 750 to be a par score for a personal loan. Depending on age and income, a personal loan could be for any amount between Rs. 50000 and Rs. 20 lakhs for salaried persons, with self-employed persons being eligible for loans up to Rs. 15 lakhs.
Home loans usually have the longest possible tenures among all types of loans, sometimes given for as many as 30 years. Therefore the amount and tenure would be calculated by the bank in a way that the complete repayment of the loan can be completed by the age of 60 or less.
The employment or business venture of the applicant should be at least 3 years old at the time of applicant. The income from such salary or own business should be in the region of Rs. 5 to 7 lakhs per annum for a home loan application to be accepted. The property for which the loan is applied for would be held as collateral for the loan, but the current address of residence also has a bearing on the eligibility. The applicant should have been living at that address for at least one year.
Apart from the income, age and address criteria, one important criteria for a home loan is how credible the applicant is, and this is assessed in two ways. First, the number of other loans running presently or taken earlier. Current loans would mean that the banks would deduct the EMI amount from monthly income while calculating the maximum possible loan that can be given. For previous loans, the banks would look at how well they have been serviced and repaid by the applicant. Banks also consider the CIBIL score of the applicant, and a score of up to 900 is required.
A car loan is for a lesser tenure of up to five years, and the car is hypothecated to the lender for the duration of the loan. Therefore the age of the applicant is not that important a factor, and anyone between the ages of 21 and 65 can apply. The two factors that the lenders look at are the number of years in the current job and the number of years resided at the current address. The interest rate and the maximum loan amount permissible would depend on the repayment capacity and the credit history of the applicant.
Unlike other loans, the health of the business is a more important criteria in determining the eligibility for business loan than the financial health of the applicant. The business should have been profitable for the last few financial years, and most banks usually prefer to offer a business loan to a business which has been profitable for the last three years. The overall business volume, referred to as the annual turnover, should have been increasing for the last few years. These figures would be assessed by the bank by seeing the annual financial statements like balance sheet and profit and loss statement, which should have been audited by a registered chartered accountant.
Education loans are usually extended to resident Indians, but if a nonresident Indian wishes to apply, then he or she must have a valid Indian passport as well. The loan can only be applied for if the applicant has got a confirmation of acceptance from the particular institution whose course the applicant wishes to pursue. Most diploma and post-graduation programs in India are eligible for education loans, provided they are in the field of technical studies, management or other professional areas and are offered by recognized universities. Specific courses offered by foreign universities are also eligible for education loans from most banks. The applicant should be able to provide suitable collateral for the loan.