- Eager to know your eligibility for different loans?
- Let’s check this post that explains the eligibility for personal loans, home loans, car loans, etc.
Having a fair idea of the loan amount you could get from banks and financial institutions in advance helps you in more ways than one. It helps you plan your loan better and meet your needs without any fuss. But how could you know the loan amount you are eligible for? This is where the term ‘Loan Eligibility’ comes into play. Lenders assess eligibility differently for different individuals based on their income and credit score. Other factors like employment and residence status will also matter when it comes to getting the desired loan amount. We will explain all these to you in this post. Let’s read and understand this critical point better.
Let’s Read the Eligibility for Different Loans
While personal loans help meet purposes such as marriage, medical emergencies, travel, education without any fuss; home loans help you buy your dream home, which otherwise, seems an impossible task given the surging property rates. At the same time, you can submit gold ornaments to procure a loan to meet your needs. And there are other loans too for your various purposes. Depending on the loan and the credit risk they pose, lenders can make their assessment. So, we’ll take one loan at a time and discuss how much you can get.
Maximum Personal Loan That You Could Get in India
As personal loans are disbursed without any collateral, the degree of credit risk is high for lenders. And that’s why they review the personal loan application minutely and approve only when they are satisfied. You should earn sufficiently high to get the maximum personal loan from the lender. At the same time, your credit score should be more than 750 to merit the maximum loan amount.
The disbursal is also based on your existing debt obligations, if any. Lenders disburse the personal loan amount you seek if your existing obligations and the proposed loan EMI come within 50% of your net monthly income (NMI). But for a better repayment track, it will be better if the percentage comes lower than 50%. That will give you some room in case you see a sudden rise in your expenses. Further, lenders will check your company, overall work experience and residence before deciding the loan amount. Most lenders won’t allow a personal loan if the individual has less than 2-3 years of work experience. You also need to stay at your current residence for a minimum of 1-2 years to get the nod.
Let’s take a look at the maximum personal loan amount of top lenders.
|Lenders||Maximum Personal Loan Amount (In INR)|
|State Bank of India (SBI)||20 Lakh|
|HDFC Bank||No Maximum Limit, it’s based on your income, credit score and repayment track|
|ICICI Bank||40 Lakh|
|Kotak Mahindra Bank||20 Lakh|
|YES BANK||50 Lakh|
|IndusInd Bank||25 Lakh|
|Fullerton India||20 Lakh|
|Bajaj Finserv||20 Lakh|
|IDFC First Bank||40 Lakh|
How Much Home Loan Can You Get?
Lenders assess the home loan eligibility of candidates based on their income, property value, the age of the customer and the years left for his/her retirement, etc. You can get a home loan of upto 75-90% of the property value, so you need to pay the remaining 10-25% from your pocket to buy a house. Loans upto INR 30 lakh, above INR 30-75 Lakh and above INR 75 lakh are disbursed at upto 90%, 80% and 75% of the property cost, respectively. Whereas you should earn enough to accommodate the home loan EMI, which will most likely be a significant amount to pay. The home loan EMI and existing debt obligations, if any, should not exceed 50% of your NMI. However, the ratio is subject to change based on the income of the customer.
Here, the lender can approve a home loan even if the credit score is good, provided you have a solid income. As it is a secured debt with the lender having the rights to seize your property in case you default, it can give you leeway on the credit score front. But a good credit score will mean lower home loan interest rates, which could lower your obligations. So, if you have any debt and want a home loan in the times to come, keep up the good work of paying your dues on time and maintain a good credit score.
What Dictates Gold Loan Eligibility?
Gold loan eligibility is decided greatly by the commercial value of the gold ornaments you have. But while deciding the eligibility, lenders will consider the value of just gold and not other metals that could also form the part of ornaments. The lender’s evaluation team will measure the weight of gold in the ornament and calculate its value as per the prevailing market rates. Based on that, it will decide the maximum disbursal amount for you. In the present scenario, lenders can finance you upto 65-90% of the gold value.
How Much Can You Get to Buy a Car in India?
Having a car and enjoying the dignity that comes with it is everyone’s wish. To make it happen, many banks and non-banking finance companies (NBFCs) offer you car loans by which you can buy your dream 4-wheeler. The maximum funding is upto 85-90% of the on-road price of the new car. For second-hand cars, you can get upto 70-80% of their value as assessed by the officer in charge. Your income, work experience, credit history will also dictate the car loan amount.
What About Other Credits?
You can get a loan against property (LAP), a loan against fixed deposits, loan against mutual funds to meet all your personal needs too. These loans account for a certain percentage of the value of the security or collateral you submit to get the same. You can get LAP of upto 60-70% of the property value, whereas loans against fixed deposits can be disbursed at upto 80-90% of the said financial instrument. Whereas, if you have mutual funds, you can get upto 80% by submitting debt funds as security. While for equity funds, you can get a loan of upto 50-60% of the value of the security.