Personal loan eligibility: Qualifying criteria

Friday,10th August 2007

Personal loans, or all purpose loans as they are referred to, are offered by many institutions like ABN Amro Associates, Citibank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered, and all major banks in India. The eligibility criteria for a personal loan are often more stringent than those applied for other categories of loans. This is because the financier views these loans as riskier than any other loan. They are, after all, loans offered with no strings attached. The eligibility criteria differ from one institution to another. This is because the perception of risk differs. However, here are the criteria applied / documents required in most cases: 1. A copy of your passport or driving license or voters ID or PAN card or photo credit card or employee ID card (in case you are employed with a government owned company) as identity proof and signature proof. 2. A copy of your passport, or ration card, or utility bill, or voters ID, or LIC policy receipt as residence proof. 3. The proof of income to be submitted by salaried individuals differs from that of self-employed individuals. Salaried people need to submit their latest salary slip, Form 16 for the last year and their bank statement for the last 6 months. Self-employed people need to provide their IT returns for the last 2 years with balance sheet and profit & loss account as a proof of income.