Here's How a Company Status Can Affect your Personal Loan Eligibility!

Get Kotak League Platinum Credit Card & earn 8X reward Points on your every spends of Rs.150 across all categories.
Know More
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
At your request, you are being re-directed to a third party site - https://www.billdesk.com/pgmerc/kotakcard/ wherein you can make your payment from a different bank account. Kotak Cards does not guarantee or warrant the accuracy or completeness of the information, materials, services or the reliability of any service, advice, opinion statement or other information displayed or distributed on the third party site. You shall access this site solely for purposes of payment of your bills and you understand and acknowledge that availing of any services offered on the site or any reliance on any opinion, advice, statement, memorandum, or information available on the site shall be at your sole risk. Kotak Cards and its affiliates, subsidiaries, employees, officers, directors and agents, expressly disclaim any liability for any deficiency in the services offered by BilIDesk whose site you are about to access. Neither Kotak Cards nor any of its affiliates nor their directors, officers and employees will be liable to or have any responsibility of any kind for any loss that you incur in the event of any deficiency in the services of BiIIDesk to whom the site belongs, failure or disruption of the site of BilIDesk, or resulting from the act or omission of any other party involved in making this site or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the site or these materials.
Note: Available in select banks only. Kotak Cards reserves the right to add/delete banks without prior notice. © Kotak Mahindra Bank. All rights reserved
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
09 MARCH, 2022
It is no longer a secret that personal loans are one of the easiest means to arrange funds for your varied needs. With a personal loan, you can finance any of your personal needs, be it house remodeling, medical expenses, vacation, child’s education, debt consolidation, or even your marriage. It is easy to apply, has quick approval and is unsecured. All these benefits make it a preferable option for getting funds instantly. However, to get a personal loan, you must fulfill the eligibility. Before you avail a personal loan, you must check your eligibility to avoid rejections. One of the eligibility criteria is your employment history and company status. Did you know that your job profile can affect your personal loan eligibility? Learn more below.
What are the personal loan eligibility criteria?
To get approval for personal loan, you need to fulfill the following eligibility criteria:
Apart from these criteria, your employment status is crucial too. Many lenders require you to be employed with reputed private organizations or government organizations to be eligible for personal loans. They also require you to be employed in the current organization for at least two years consequently.
How does your employment history affect your personal loan eligibility?
Your unstable employment history and company status can lower your personal loan eligibility and the lender can reject your personal loan application and deny you the loan. Even if your application is accepted, the lender can charge you high-interest rates and lower loan amounts than you apply for.
Why does your employment history affect your personal loan eligibility?
A personal loan is an unsecured loan, which means you need not furnish any collateral or security to avail a personal loan. Lenders bear a higher risk in lending an unsecured loan. Therefore, by considering the employment history, they review your source of income. A borrower who has a stable job profile and a steady source of income is less likely to default on his/her EMI payment. Moreover, it also means that you have a regular source of income and will pay your EMI timely.
Lenders also check the organization you are employed with. They prefer borrowers employed with multinational companies, PSUs, state or central government, etc. These organizations provide job security and usually do not indulge in bankruptcy or layoffs, which makes the borrowers, pay EMIs timely.
The bottom line
Your personal loan application could be rejected even if you have a good credit score but an unstable job. If you have just joined a company or are working in a start-up, you might face challenges in availing a personal loan. Therefore, in order to avail the loan offering, ensure that you do not change your job frequently and stay for a longer period in your company.
You have already rated this article
OK