How do banks decide the maximum personal loan amount that I can get?
Personal Loan
2 Jun 2022
Personal Loan is one of the most dominating and influential loan among all kind of loans as it requires majorly for some important, urgent, and unexpected events. Though, the sanctioning of personal loan depends on various factors that needs to be accommodate with the criteria set by the bank. Also, every bank has its own criteria to be fulfilled vary from other banks or financial institutions and moneylenders.
To sanction the loan, mostly banks follow this criterion:
- Bank always checks the credit history and current situation of a borrower based on the income level, credit dues (if any) and current assets or liabilities to see whether the borrower have the capacity to repay the loan with interest on time or not.
- Usually, people with high-income level and no credit dues have more chances to get personal loan than the people with low-income levels and more credit bills to pay as clearly it talks about the credibility of a borrower.
- Some banks decide the different interest rate based on different occupations such as for salaried people, self-employed and businessperson, there will be a different criterion to be followed that does not affect their existing other loans and EMIs, this is one of the most effective and healthy policies to develop by banks to serve more people with loan benefits.
- Government Banks like State Bank of India, Central Bank of India, Punjab National Bank and Bank of Baroda provides such improvised facilities with maximum repayment tenure up to between 48 to 72 months.
- Banks such as ICICI, HDFC, AXIS, KOTAK MAHINDRA BANK AND TATA CAPITAL also improvised their personal loan services recently to avail for different group of people occupying different professions.
Therefore, this is how you can opt for personal loans.
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